The cooperative offers rebates to members who install geothermal systems. If you are having a geothermal system installed, please contact the cooperative prior to the installation to make sure it qualifies for our geothermal program. There is also paperwork that will need to be completed by the member and geothermal contractor. Find out about geothermal and the incentives offered below.
What is geothermal?
Geothermal is the most energy efficient and economical resource for heating and cooling your home and it is right in your own backyard. The concept is simple. A water-based solution circulates through plastic pipes (called a loop) placed underground or submerged in a pond. Heat is absorbed and carried to the geothermal unit, which extracts the heat, compresses it to higher temperatures and distributes it through the home. The process is reversed in the summer by removing heat from the home and providing very comfortable air conditioning.
The Bipartisan Budget Act of 2018, signed into law on February 9, included an extension of the 30% geothermal tax credits! The reinstated tax credits are retroactive to January 1, 2017, and are extended to December 31, 2021.
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
Click here to view Energy Star's website for more information.
Cooperative Program Qualifications
If you are having a geothermal system installed, please contact the cooperative prior to the installation to make sure it qualifies for our geothermal program. There is paperwork that will need to be completed by the geothermal contractor. The member must also sign an agreement that explains the requirements on the geothermal program. The geothermal system must be an all-electric system and be the only source of heat in the home (any other types of heat must be removed). This does not include fireplaces or wood stoves. The geothermal system must be installed by a contractor on our Geothermal Dealer List. The loop must be closed and only plastic pipe (such as polybutylene) may be used for the loop installation. Direct expansion systems do not qualify. The geothermal system installed must be Energy Star certified and have a minimum EER of 17.1 and minimum COP of 3.6.
Download our Geothermal Packet for more information.
Butler Rural Electric Cooperative, Inc. offers the following geothermal rebates:
- $1200 for the purchase of a new geothermal system*
- $600 for the purchase of a replacement geothermal system*
Members with qualifying geothermal systems also receive a reduced kilowatt-hour rate on a portion of their electrical usage. The geothermal discount rate is a $.02 credit per
kilowatt-hour used between 1001-2501 kilowatt-hours from September through May. In order to qualify for the geothermal rebate, members must use a contractor from our participating Geothermal Contractor List. All contractors are International Ground Source Heat Pump Association (IGSHPA) certified and have agreed to install systems according to cooperative standards. Loans are available at a fixed 3.5% interest rate. For more information on loans, click here.
*Incentives can change and are not guaranteed. Call the office to confirm current program incentives prior to geothermal installation.
Click here for a full list of heating and cooling contractors who are qualified installers of geothermal systems.
If you have questions or want more information about the geothermal program, fill out our Contact Form.