Fall 2021 Huge Rebate and Incentive Money
This fall, take advantage of some of the best rebates and incentives ever offered for new geothermal installations! See 70, 80, 90—even 100% of the installation cost back in rebates and incentives! Let’s look at exactly what is available and how much money you can save.
The best part is the math below does not account for any savings on utility bills or the replacement cost of existing equipment of any kind!
The following are incentives available for Fall 2021. Some rebates are instant, and some you receive incrementally. When these rebates are used with 0% 12-months same as cash or long-term financing, customers can have almost no out-of-pocket cost.
Residential:
- 26% Federal Income Tax Credit: 26% of the installation cost on your geothermal system. (excludes ducting and electrical work).
- Maryland State Grant: $3,000 state grant to replace inefficient space heating and cooling for a geothermal system. A $500 grant to replace an existing geothermal system with a new geothermal.
- Utility Rebate Program: $1,500/per system INSTANT rebate.
- County Property Tax Credit: Anne Arundel, Baltimore, Harford, and Prince Georges counties offer a one-time property tax credit varying from $2,500 to $5,000/per system.
- ***NEW***Renewable Energy Credits for Geothermal Heating and Cooling. Customers who replace inefficient space heating and cooling systems can receive Renewable Energy Credits (or RECs). Once you register your system with the state, begin earning RECs annually for the life of the system. An average system could receive 30-40 RECS per year, with a current value of $16/REC. The market to sell these RECS is similar to a stock—the value can go up or down over time. At today’s value, you could receive almost $13,000 over the life of your system.
Let’s look at an example:
John and Becky live in a 2,000 square-foot home equipped with an 18-year-old oil furnace and air conditioning (AC) system. Their home is in Lutherville, MD, on three-quarters of an acre. To install a new geothermal system, John and Becky’s investment would look something like this.
| Total Investment | $34,000 |
| Federal Tax Credit | $8,840 |
| State Grant | $3,000 |
| County Property Tax Credit | $5,000 |
| Utility Credit | $1,500 |
| REC Value (20-year projection) | $12,800 |
| Net Investment: | $2,860 |
John and Becky will get 92% of their total investment back over the life of their system!
Second Example:
Martha has a 1,500 square-foot home in Annapolis, MD, on 10 acres with a 25-year-old gas furnace and air conditioning (AC) system.
| Total Investment | $22,000 |
| Federal Tax Credit | $5,720 |
| State Grant | $3,000 |
| County Property Tax Credit | $2,500 |
| Utility Credit | $1,500 |
| REC Value (20-year projection) | $10,880 |
| Net Investment: | $-1,600 |
Martha will receive 107% of her investment back in incentives over the life of her system!
Third Example:
Ted lives in a 6,500 square-foot home on a half-acre lot in Rockville, with two natural gas furnaces, an air conditioner (AC), and a finished basement.
| Total Investment | $47,000 |
| Federal Tax Credit | $12,220 |
| State Grant | $3,000 |
| County Property Tax Credit | 0 |
| Utility Credit | $3,000 |
| REC Value (20-year projection) | $25,600 |
| Net Investment: | $3,180 |