The U.S. geothermal industry is gearing up to meet increased demand for ground-source heat pump systems that’s expected to be sparked by incentives offered through the Inflation Reduction Act (IRA).
Signed into law last August, the IRA earmarks $369 billion toward energy security and fighting climate change - including by incentivizing energy efficiency, electrification, and renewable energy. Nearly $9 billion of this is set aside for direct-to-homeowner rebates for the installation of high-efficiency and renewable-source HVAC equipment, such as geothermal systems, and for energy-saving home improvements, which could include geothermal. Billions more in IRA-enhanced tax incentives - for high-efficiency equipment, renewables, and energy-saving building measures - are potentially available for homeowners as well as for the owners of commercial and other types of buildings.