This time of year, we seldom think about heating and cooling. The days aren’t hot, and the evenings seldom freeze. But if you’re thinking about the next great commercial or government building, now might be the right time to consider tapping into the ground to reduce the cost of comfortable offices and public spaces. And government incentives are proving to be the tipping point for many decision-makers.
The Inflation Reduction Act of 2023 lengthened and strengthened federal tax credits for the purchase and installation of geothermal heating and air conditioning systems. For commercial buildings, this means no less than a six percent tax credit, or 1/5th of the bonus rate, but the credit can escalate up to thirty percent if the system is built from American-made products. With nearly one-third of expenses recouped in tax credits and the program in place through 2035, it is easy to see why developers across the country are asking their estimating and accounting departments to take a real look at these programs.
Add the coming moratoriums on evaporative cooling systems in the Southwest, and it’s easy to see why both commercial developers and government entities alike are looking at geothermal. These owners typically keep possession of their buildings for decades, making these systems deliver a tremendous return on investment.
Once installed, the cost of maintaining the system can be substantially less than traditional heating and cooling systems. Parts are minimal and wear out slowly, creating an HVAC system with longer lifespans than traditional electrical options. The closed system uses dramatically less energy than conventional heating or air conditioning systems. The monthly cost of maintaining a system results in significant savings on energy bills and the carbon footprint is miniscule. Almost every heating and cooling system requires electricity, resulting in air pollution, whereas a geothermal system uses significantly less electricity.
Ground source heat exchange (aka geothermal) systems take advantage of the earth’s geothermal properties. Just feet below the earth’s surface, the ground’s temperature rarely changes. While there could be several feet of snow on the ground during a Northern Nevada winter or a Southern Nevada summer hot enough to fry an egg on a sidewalk, the below ground temperature remains steady in the mid to lower 70s in Southern Nevada, and in the 50’s and 60’s in Northern Nevada.
These systems work much like a refrigerator, which makes a cool place colder by transferring heat. In the winter, the heat pump removes heat from the heat exchanger and pumps it into the indoor air, moving heat from the ground to the building’s interior. In the summer, the system is reversed, with the heat from the indoors exchanged for the cooler temperatures below.
With the green movement only increasing in step with utility costs, more hospitals, airports, and office buildings of all kinds are turning to ground source heat exchange systems to manage and reduce expenses.