The geothermal industry had a rough year in 2017, mostly due to an unfair marketplace set up by the government. While solar and wind continued to enjoy the renewable tax credits, geothermal was left out in the cold. As a result, geothermal sales were down a significant 45 percent from 2016 to 2017.
Geothermal manufacturers have renewed optimism for 2018 and beyond due to the reinstatement of their own tax credits, which are retroactive to 2017. There will be a 30 percent income tax credit for residential installation of a geothermal heat pump in 2018 and 2019. It then drops to 26 percent in 2020 and 22 percent in 2021. It ends Dec. 31, 2021.