Despite the efficiency and savings of geothermal heating and cooling, upfront costs have historically hindered widespread adoption. Drilling or trenching for the installation ground loops add to the initial investment in comparison to traditional HVAC systems. However, the Inflation Reduction Act of 2022 has delivered good news that is transforming the industry and easing previous cost barriers in the form of federal income tax credits and accelerated depreciation deductions.
Geothermal heat pumps (GHPs) tap into the constant temperature of the Earth to provide both heating and cooling in a highly efficient manner. As concerns about climate change and the need for sustainable energy solutions grow, more and more businesses are looking towards more sustainable methods of regulating their buildings' temperatures. These systems use the earth's relatively constant underground temperature to reduce the electrical energy required to provide heating, cooling and even water heating.