Geothermal heat pump (GHP) sales have grown steadily in recent years, thanks to the 30 percent federal tax credit and higher levels of consumer awareness. Even so, manufacturers estimate that GHP installations account for only about 1 to 2 percent of the total market.
The high initial cost of installation is one of the main reasons why GHPs do not command a larger market share, although local incentives and better financing options may help mitigate this concern. The economy is also slowly improving, leading some industry experts to predict that sales of GHPs will command a far larger share of the market by 2016.