There is no question the 30 percent federal tax credit for residential geothermal heat pump (GHP) systems has been a game changer for the industry. The generous tax credit, which went into effect in 2008 and is scheduled to expire at the end of 2016, significantly increased consumer awareness of these energy-efficient systems.
But, even with substantial government subsidies, geothermal has not yet become mainstream, and, with approximately 75,000 units sold annually, market penetration remains in the 1-2 percent range. Despite the numbers, manufacturers remain optimistic about the future and are focused on growing the market by introducing new products and educating the public on the many benefits of GHPs.