PENNSYLVANIA FUNDS GEOTHERMAL

State program saves money paying for geothermal heating, cooling; Low-interest loans lower monthly payments to buy systems that also reduce electric bills
Darrin Youker, February 15, 2010 (Reading Eagle)

"Pennsylvania is making it cheaper for people to install heating and cooling systems that tap the earth's energy.

"That means they'll save twice, because [first the program reduces monthly payments and then] the systems, called geothermal, or ground-source systems, also are cheaper to operate… [T]he rebate program [was proposed] to the Commonwealth Financing Authority in an effort to make geothermal systems more affordable…"

How ground source geothermal systems work in winter for homes and buildings large and small. (click to enlarge)

"Geothermal takes advantage of the relatively consistent temperatures inside the earth…A typical geothermal system costs $13,000 to $20,000, depending on the size of the home…The state program offers homeowners a 10-year loan at 1 percent interest to finance half the cost of the system…Federal tax rebates of 30 percent, which can lower the price of the system, also are available…

"Unlike other state energy incentives, which provide tax credits or rebates, the loan program will ensure that money remains available for other homeowners…As loans are paid back the money will go to other borrowers in the program."

How ground source geothermal systems work in summer for homes and buildings large and small. (click to enlarge)

"Geothermal systems are effective at heating and cooling because they tap the underground temperature, which is about 59 degrees year-round. A geothermal heat pump uses less energy to heat or cool air from that temperature than from the more extreme temperatures of outdoor air.

"Interest in geothermal systems has grown in recent years, as homeowners have searched for ways to save money…Federal rebates spurred much of that growth…[and] the state incentives [are expected to] encourage even more people to install systems…"