What is a Geothermal System?

What is geothermal heating?

A geothermal heating and cooling system is an energy-efficient system that uses the ground temperature to heat homes in the winter and cool them in the summer. Geothermal systems have three essential parts:

  1. The air handling system that transfers the air

  2. The groundwater heat exchanger that takes heat from the ground and/or transfers heat back into the earth

  3. The geothermal loop that moves heat between the air handling system and the groundwater exchanger

How Does A Geothermal System Work?

After a geothermal system is installed, the heat pump, usually located in the garage or basement, circulates liquid through pipes 300 feet into the ground. These are sometimes referred to as loops and they absorb the temperature that is distributed into the ground from the sun. The liquid in the loops circulates back up to the geothermal heat pump which heats or cools your home. In the winter, the heat from the liquid is extracted and distributed around the home. In the summer, heat is taken from the home into the liquid which carries it into the ground to cool.

Geothermal heating and cooling systems do not require fossil fuels or a lot of electricity making it an environmentally friendly solution to heating and cooling your home. It is recognized by the United States Environmental Protection Agency (EPA) as a clean, renewable source of energy that is greatly underutilized by the general population.

How does a Geothermal System Save you Money?

Geothermal systems save you money by getting their energy from the earth’s core as a result they don’t have to work as hard to heat or cool your home. After the Home Climates team installs your geothermal system, the heat pump, usually located in the garage or basement, circulates liquid through underground pipes, or loops. These loops absorb the warmth from the surrounding earth, which comes from the sun. The liquid in the loops circulates back up to the geothermal heat pump, which heats or cools your home. In the winter, the system extracts heat from the liquid and distributes it around your home. In the summer, the system transfers heat from the property into the liquid, which carries it into the ground to cool.

Oregonians are eligible for up to a 30% Federal tax credit under the Inflation Reduction Act (IRA). This credit applies to ENERGY STAR-rated heat pumps installed by Jan 1, 2033, and expires at the end of 2034, according to the Department of Energy. The credit is claimed on IRS Form 5695

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