In 2018, Department of Energy passed a Federal Tax Incentive for geothermal ground source heat pumps called the Investment Tax Credit (ITC). In the form of personal tax credits, these incentives save Dandelion customers thousands of dollars.
As a New York State homeowner, you qualify for the New York State Energy Research and Development Authority (NYSERDA) New York State Clean Heat Program. The State of New York and the 6 electric utilities that serve New York State have allocated substantial funding for ground source heat pump installations. Dandelion is an approved Participating Contractor in the program.
As a Connecticut homeowner you can qualify for DEEP (Department of Energy and Environmental Protection) geothermal heat pump incentives. Connecticut homeowners can qualify for $1,000s in geothermal incentives. Details are listed below.
In 2021 and 2022, the federal tax incentives known as the Investment Tax Credit (ITC) will cover 26% of a Dandelion geothermal system. However, the percentage covered by the ITC will decrease to 22% in 2023, and 0% in 2024.SEE IF YOUR HOME QUALIFIES
New York State's Clean Heat Program is administered by the homeowner’s utility. Let’s go over some important details to explain how these incentives are allocated.
Each utility has a unique incentive.
The incentive amounts are based on the installed heat pump’s total heating capacity BTUH.
PSEG Long Island rebate is based on the COP and EER of the unit. Long Island homeowners who install a typical 4 ton system (48,000 BTU) in a 2500 sq ft home get an $8,383 rebate for a new Dandelion Geothermal system. Rebates are capped at 70% of project cost.
The rebate program requires a pre-inspection and post-inspection step at the customer's home. Dandelion has built this into the installation timeline to ensure all rebate requirements are met.
Below is a list of the PSEG rebate based on system size:
Both Eversource and United Illuminating offer geothermal heat pump incentives via the Energize Connecticut program (The following municipal utilities are not part of the Energize Connecticut program; Groton, Bozrah, Norwalk, Wallingford, and Norwich).
The Connecticut incentives are limited to $15,000 per household, or 10 tons worth of geothermal heat pumps. See the table below for an example of what an average sized home that needs a 5 ton geothermal heat pump system would qualify for in Connecticut.
With Mass Save incentives, MA homeowners who install a typical 4 ton system (48,000 BTU) in a 2500 sq ft home get an $8000 rebate for a new Dandelion Geothermal system. Projects are capped at a total incentive of $15,000. Geothermal systems are also exempt from state sales tax.
There are additional rebates available through the Alternative Energy Portfolio Standard for reducing greenhouse gas emissions that range from $400-$1,200/year for up to 10 years.
However, homeowners cannot take advantage of both. They are only eligible for either the Mass Save rebate or the Alternative Energy Portfolio Standard.
Unfortunately, homeowners who use natural gas to heat their homes are not eligible for a Mass Save rebate at this time.