Size closed-loop vertical boreholes, ground heat exchangers, IRA Section 48 ITC (30%–50%), Section 179D tax deductions, natural gas boiler displacement, and cooling tower water elimination with 25-year LCC underwriting.
| Performance / Financial Metric | Geothermal Heat Pump (GSHP) | Conventional Chiller + Boiler |
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Under the Inflation Reduction Act of 2022 (IRA), commercial ground-source heat pump (GSHP) installations qualify for the Section 48 Investment Tax Credit (ITC) at up to 50% for projects meeting prevailing wage, apprenticeship, domestic content, and energy community guidelines. Tax-exempt entities (schools, universities, municipalities, hospital authorities) can utilize Section 6417 Elective Pay (Direct Pay) to receive cash reimbursement for the full tax credit value.
Cooling Tower Elimination: Unlike evaporative cooling towers, geothermal wellfields require zero chemical biocide water treatment, produce zero legionella risks, and eliminate tens of thousands of gallons of sewer and water utility expenses annually.