Illustration of a geothermal system.

A & L Heating and Air, LLC is proud to serve the people of Maryville and the surrounding area with prompt, quality service. We install WaterFurnace products which have industry leading warranties and performance. We pride ourselves on exceptional customer service. Call 865-856-8797 today to schedule a service appointment or for a free, no-obligation consultation. We'll help determine the perfect system for your home or business.

Our team services most major brands of geothermal and HVAC equipment. We've been proudly serving Maryville and the surrounding area with top of the line products, service, and maintenance for years and hope to do the same for you, give us a call today!

How Geothermal Heating and Cooling Works

As the seasons change from spring to winter, temperatures fluctuate throughout the year. Some climates can range from blazing summers to chilly winters; Maryville included. Did you know there is a pretty consistent temperature, regardless of climate or season, just below the ground?

Earth's crust absorbs 47% of the sun's heat (energy) and is maintained in the ground a few feet below the surface. WaterFurnace geothermal systems draw from this free heat source with an earth loop. This ingenious technology salvages the sun's heat supplying your home or office with central heating and cooling.

Using the earth loop, a WaterFurnace geothermal heat pump extracts the heat from the ground in the heating cycle. The geothermal system sucks the heat from the loops and passes this warmed air through a traditional duct system.

Additional available options include using that same heat to provide hot water and radiant floor heating.

During the cooling mode, cool, conditioned air is distributed throughout the house by doing the exact opposite as the heating process. Heat is not extracted, instead it is pushed into the ground. The warm heat is pulled from your home and transferred back into the earth loop. Your hot water heating can be fueled by this process as well.

Frequently Asked Questions

Some Geothermal Heat Pump Facts

There are plenty of reasons geothermal heat pumps are unique:

  • They are among the greenest systems on the market.
  • These systems don’t burn gas but instead rely on the sun’s energy that’s naturally deposited into the ground.
  • The geothermal heat pump offers both heating and cooling. Many conventional heating, ventilation, and air conditioning (HVAC) systems require the combination of two units: an air conditioner plus a furnace or boiler.
  • You can apply for energy tax credits. The IRS allows a yearly deduction for a geothermal system, including the cost of installation.
  • Geothermal heat pumps use up to half as much electricity as a standard HVAC unit. By making the switch, you can save up to 70 percent on your heating costs and up to 50 percent on your cooling costs per year, according to the U.S. Environmental Protection Agency (EPA).
  • You can expect your geothermal heat pump to operate efficiently for up to 25 years and the piping to last over 50 years. This long-lasting investment will increase your home value.

Geothermal Financial Case

If you're shopping for new HVAC equipment, it's probably because your existing equipment is nearing the end of its useful life or you're building a new house. Both scenarios require some level of investment.

What's the minimum you'd be happy with in your home? If you're considering geothermal it's very likely that efficiency is important to you. If the minimum you'd accept is a 16 SEER air conditioner paired with a 92 AFUE furnace, it makes sense to use that cost as a starting point for analysis because it represents the minimum amount of money you can spend and still be comfortable (literally).

Costs for a 16 SEER air conditioner and a 92 AFUE furnace can vary greatly-but it can reach $13,000 in many areas. Again, prices vary greatly based on several factors (geography, ground composition, size of home, equipment chosen, etc.), but let's assume the cost to install a geothermal heat pump in your area is $25,000. There's currently a 30% US federal tax credit, decreasing each year through 2034 That's $7,500 as a credit on your taxes, not just a deduction. The initial cost difference between an ordinary system and a geothermal system is just $5,500. Your area may also have other additional incentives that won't be factored in for this calculation.

New Equipment 16 SEER / 92 AFUE 41 EER / 5.3 COP
Annual savings (versus existing 13 SEER / 80 AFUE) $162 $1,416
Useful life 15-18 years 25 years
Break-even point NEVER 11 years, 1 month
Return at 25 year mark $26,047 loss $28,912 profit
Cumulative energy savings $5,310 saved $46,412 saved
profit over useful life chart
Profit over useful life chart.

As you can see, the energy savings from a 16 SEER air conditioner and 92 AFUE furnace will NEVER pay you back during the life of the system. In fact, you'd still be over $10k in the hole when the system needed to be replaced at the end of the 16-year mark-putting you even farther from payback.

When the first WaterFurnace unit finally needs replacement at the end of the 25-year mark, the 2nd furnace and 2nd air conditioner will already be 1/3rd of the way through their expected lives-and you'd be $26,046 in the hole overall. Meanwhile, the WaterFurnace system will have already paid for itself through energy savings - and gone on to generate an additional $28,912.

Another important benefit of geothermal is that the underground energy collector has a life expectancy of more than 100 years. This means the original collector can be used with a second WaterFurnace unit-making the second system much cheaper.

Geothermal Tax Credits & Incentives

In August 2022, the tax credit for geothermal heat pump installations was extended through 2034. Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. The credit has no limit and there's no limitation on the number of times the credit can be claimed.

US Tax Credits Through 2034

Tax credit incentives.

The energy tax credit can be combined with solar and wind credits as well as energy efficiency upgrade credits. A 30% federal tax credit for residential ground source heat pump installations has been extended through December 31, 2032. The incentive will be lowered to 26% for systems that are installed in 2033 and 22% in 2034, so act quickly to save the most on your installation.

Check For More Local Incentives

In addition to the federal tax credit, some state, local, and utility incentives may be available in your area for even more savings on installing a geothermal heat pump. Check out the Database of State Incentives for Renewables & Efficiency (DSIRE) website to find policies and incentives in your area.

Need Geothermal Heat Pump Service?

Contact the experts at A & L HVAC & Plumbing.

Call us at 865-856-8797!