What You Need to Know About Geothermal Energy in Indiana

If you’re like most eco-conscious Hoosiers, you probably have considered all the potential benefits of geothermal energy in Indiana. The Midwestern state has traditionally utilized fossil fuels, such as coal and natural gas to serve its citizens with power. However, many of the electric companies are member co-ops, and residents are driving innovation into more sustainable options. 

Geothermal energy is attractive to energy cooperatives because it taps into the natural heat the earth exudes but is also clean and renewable. As the population in the state grows, higher demand means power companies must be forward thinking in order to meet higher demands without destroying the environment. 

What Is Geothermal Energy?

Deep in the earth are several forms of heat that humans can tap into for energy. Magma, decaying animals and hot springs all create warmth and energy. To harness the power of this natural heat source, power companies build geothermal plants. 

Geothermal reservoirs bring steam to the surface and drive huge turbines, which supply power. Other types of geothermal plants include flash steam, where hot water is brought to the surface and turned to steam and binary cycle, where hot water is cooled rapidly by being added to a different fluid. In all the instances, turbines convert the steam into usable electricity. 

Can You Install a Geothermal Heating & Cooling System in Your Indiana Home?

In short, yes! You can install a geothermal system on your property and convert the earth’s heat into heating and cooling. The better question might be to ask what are the benefits and is it worth the cost?

Benefits of Geothermal Energy in Indiana

Geothermal systems offer many advantages, such as:

• Save up to 72% on heating and cooling costs
• Less maintenance than traditional heat pumps due to having fewer moving parts 
• No worries over gas leaks or carbon monoxide poisoning 
• Better indoor air quality 
• Environmentally friendly

Costs of Installing a Geothermal HVAC System

Installing a geothermal system is costly. According to Forbes, the range can run anywhere from $17,000 to $32,300 to install a system. However, most systems pay for themselves within five to ten years, yet have a lifespan of 25 years or more. 

Currently, there is a 30% federal tax credit for geothermal heat pumps installed before January 1, 2033 from the federal government. You may also be able to take advantage of the Indiana Geothermal Heat Pump Residential Rebate Program and credits from your local energy provider. 

On a $20,000 install, you’ll get a $6,000 credit on federal taxes, a maximum of $2,000 from the Indiana rebate and possibly a little credit from your local power company, driving the cost as low as $12,000 on a $20,000 system. When your furnace goes out may be the perfect time to invest in a system as you’d already pay as much as $10,000 for a traditional unit. 

Hoosiers are taking advantage of the tax credits to install systems much less expensively and hoping to recoup the costs on energy bills. Keep in mind with the federal tax credit that it is not a rebate. You are not guaranteed the funds back, so plan accordingly. Consult your tax advisor for details. For example, you may want to reduce the amount you pay into taxes throughout the year to ensure you owe the same amount as the credit and thus can take full advantage of it. 

List of Geothermal Installers in Indiana

Some common names crop up if you hunt for geothermal energy in Indiana. Always use due diligence. Ask for references to other customers in the area and talk to them about their experiences with the company, look on social media for comments about the brand, ask neighbors and check review sites. While there is never a guarantee that a company will follow through, you can do research that will help you avoid scam artists. 

Collier’s Heating and Air Conditioning

Located in the northern part of the state, Collier’s Heating and Air Conditioning services center and northern regions in Indiana. The company offers both water-based and refrigerant-based systems. The systems are installed between five to 100 feet below ground, where the temperature remains a steady 55 degrees throughout the year. Collier’s has multiple locations around the state and offers 24/7 emergency service. 

Precision Comfort Systems

Serving central Indiana, Precision Comfort Systems specializes in geothermal heating and cooling. The founders have been in business 26 years and pride themselves on quality installations. Google reviews live on their about page to show how much customers love the brand. 

Indiana Geothermal

Located in Indianapolis, Indiana Geothermal has been in business since 2000. Leadership works with contractors around the state, so the company likely serves your area. They’ll send someone to your home to survey where a system might go and give you an idea of the potential cost. 

Greenwell Plumbing and Heating

Serving the southern part of the state, Greenwell offers all types of HVAC services, including geothermal installations. The brand offers whole home solutions with heating, cooling and plumbing services, emergency calls and experience installing geothermal energy for residential use. If you’re a customer of R.E.M.C. in Clark County, you can utilize their $2,000 geothermal heat pump rebate to save even more. 

Although the companies above serve most of the state from top to bottom, if you can’t locate one that comes to your area, you can also visit the forums for the geothermal organization and see which contractors answer with knowledge and experience. At the same time, you can pose any additional questions you might have.

A Few Final Tips Before Hiring a Company to Install Geothermal Energy in Indiana

Geothermal energy saves money over time, but if you’re on a tight budget, it might be too much of a stretch at this time. Consider the cost of installing a new system and if you can swing a few thousand more this year. While the rebates and credits are a nice touch. 

Never pay someone in full before they start work. Some companies do require a deposit and the remainder on completion or at various stages in the project. Read contracts carefully and make sure you understand any ongoing maintenance costs or how the brand handles repairs. 

Geothermal energy can save you a lot of money over the life of the system. The initial outlay of money returns to you and you use a cleaner, more sustainable source of power.