Geothermal Heating and Cooling Tax Credits

The Inflation Reduction Act (IRA)

GeoThermal and Spray FoamThe Inflation Reduction Act (IRA) represents a significant legislative step toward promoting energy efficiency and reducing greenhouse gas emissions within the United States. Two technologies that stand to benefit families from the IRA are spray foam insulation and geothermal heating and cooling systems, both of which Chicago Green Insulation can install. Both technologies are pivotal in transitioning toward a more sustainable and energy-efficient future while maintaining super comfortable homes. The IRA provides various incentives that make these technologies more accessible to homeowners and businesses alike, promoting their adoption on a wider scale.  GeoThermal has traditionally not been an option in existing homes or on lots without the total square footage required.  Our drilling is specifically designed for existing homes and uses horizontal drilling and the segments for the drill are only 5’ long so we can go straight down through an existing basement slab to do the heat exchanging required.

When building or doing significant renovation work, you can use spray foam insulation in combination with GeoThermal Heating and Cooling to minimize utility bills, obtain a 30% Federal Tax Credit of the total cost plus $2000 of the work including the foam and the GeoThermal equipment including the drilling as a year 1 Federal Tax Credit. In addition, you qualify for $1000 per ton cash credit from ComEd up to a max of $6000. At Chicago Green Insulation we will do the needed load calculations to determine the sizing and the quantity of spray foam to get the results required for your space!  Our GeoThermal Solution works in existing homes, zero lot line homes as our drill is the size of a couch and can go in the back door to the basement, down the stairs and the drill bit sections are 5’ tall and can be added within an existing basement!

Geothermal Heating and Cooling: Harnessing the Earth’s Energy

Geothermal heating and cooling systems, also known as ground-source heat pumps, utilize the stable temperatures underground to provide heating, cooling, and hot water at remarkably high efficiencies. Geothermal heating and cooling in the Chicago area utilizes underground pipes to exchange heat with the earth, which maintains a constant temperature year-round. In winter, it extracts warmth from below to heat buildings, and in summer, it reverses, removing indoor heat to cool buildings efficiently.  The IRA’s support for geothermal technologies underscores their importance in achieving energy independence and sustainability.  When combined with spray foam insulation, you can cut drilling costs in half and lifetime utility bills by over 90%.

  1. High Efficiency: Geothermal systems are among the most efficient heating and cooling technologies available. They can reduce energy consumption by up to 50% compared to traditional HVAC systems, offering significant energy savings over the long term.  When combined with spray foam insulation in the entire home/ business it can be as much as 90% reduction in monthly costs compared to traditional insulation and HVAC systems.
  2. Renewable Energy Source: Geothermal energy is a renewable resource, tapping into the inexhaustible heat stored beneath the Earth’s surface. This aligns with the IRA’s objectives of promoting renewable energy sources and reducing reliance on fossil fuels.
  3. Lower Operating Costs: Although the initial investment in geothermal systems can be higher, the operating costs are significantly lower than traditional systems. The IRA provides tax credits and incentives to offset the installation costs, making geothermal technology a more feasible option for a wider range of consumers.
  4. Durability and Reliability: Geothermal systems have fewer moving parts and are not exposed to outdoor elements, leading to longer lifespans and lower maintenance costs. This reliability is beneficial for both residential and commercial applications.
  5. Environmental Impact: Geothermal systems have a minimal environmental footprint, contributing to reduced greenhouse gas emissions and less strain on the electrical grid. This is in line with the IRA’s goals of environmental protection and sustainability.

When combined with spray foam insulation, you can cut drilling costs in half and lifetime utility bills by over 90%.

Spray Foam Insulation: A Leap Towards Energy Efficiency

Spray foam insulation is a cutting-edge insulation material that expands to fill gaps and cracks, providing a high-performance solution for reducing energy leakage in buildings. Its benefits are numerous, directly contributing to the objectives of the IRA in promoting lower energy consumption and sustainability.

  1. Energy Savings: Spray foam insulation significantly reduces energy consumption by sealing air leaks and creating an airtight building envelope. This leads to substantial savings on heating and cooling costs, a direct benefit for homeowners and businesses looking to reduce their energy bills.
  2. Enhanced Building Comfort: By eliminating air leaks, spray foam insulation ensures consistent indoor temperatures, reducing the instances of hot or cold spots within a building. This contributes to improved comfort for occupants, a key aspect of building performance.
  3. Reduced Carbon Footprint: By improving energy efficiency, buildings with spray foam insulation contribute to lower carbon emissions, aligning with the IRA’s goal of reducing greenhouse gas emissions. This is crucial in the fight against climate change.
  4. Increased Building Durability: Closed Cell Spray foam insulation adds structural strength (200% increase in structural integrity) to buildings and protects against moisture, reducing the risk of mold and mildew growth. This contributes to a healthier indoor environment and prolongs the lifespan of the building.
  5. Incentives and Tax Credits: The IRA includes provisions for tax credits and rebates for energy-efficient upgrades, making spray foam insulation more affordable for consumers. These financial incentives are designed to accelerate the adoption of energy-efficient technologies.

If you would like more information or have a project that you would like to review, please call us at 847-987-3626

About the Author, Tom Decker

With ten years of experience selling spray foam insulation in Chicago, Tom Decker is THE person to call and the Chicago Green Insulation is the organization to hire when you are looking for top notch quality and performance as well as someone who can deal with the needs of code officials, home owners and general contractors. Call the others in Chicago, if you are interested in the cheapest price, call Chicago Green Insulation if you are interested in using your dollars to make Chicago a better city for all of us!

Sign Up for Tom’s Newsletter

Your email is safe, I never spam!

What People Are Saying…

Click to Call
Share via
Copy link
Powered by Social Snap