Geothermal Energy Installers in Alabama

Geothermal energy is becoming popular as the United States shifts toward clean renewables. While it may be more prevalent near the volcanic West, homeowners can take advantage of it anywhere. Geothermal energy installers in Alabama have especially seen interest increase as electricity costs skyrocket. Here is everything you need to know about geothermal heating and cooling in Alabama. 

Is There Geothermal Energy in Alabama?

Geothermal energy is often associated with California, where much of the state is situated over geothermal geysers. However, Alabama residents can also reap its rewards. The state is energy-rich, with a powerful combination of traditional and renewable fuel sources. In fact, it ranks sixth among all states in electricity generation.

Although its renewable energy portfolio falls short of other states, Alabama’s potential is outstanding. Alabama can produce 25 times its electricity demand in 2050 from the sun and wind alone. Imagine how robust renewables could be with widespread geothermal energy in the mix. 

The University of Alabama is currently exploring geothermal energy with two central thermal energy plants. The school uses this source to heat and chill water for campus temperature control. University officials hope to expand its operations for financial returns throughout the system’s life span. 

What to Know About Geothermal Heating and Cooling

Geothermal energy is a renewable resource derived from heat in the Earth’s sub-surface. Homeowners and commercial building managers can install geothermal heat pumps to generate electricity for heating and cooling.

Geothermal energy installers in Alabama dig wells underground to access reservoirs filled with hot steam and water. An open- or closed-loop geothermal heat pump extracts the heat to warm a home during the winter months and sends it back underground to cool it in the summer. 

Although geothermal energy is everywhere in the U.S., the most active reservoirs are along tectonic plates near volcanoes. However, a 2011 study found several wells in southwest Alabama, with bottom-hole temperatures reaching over 400 degrees Fahrenheit — particularly valuable considering there is no volcanic activity in the area.

How Much Does a Geothermal Heat Pump Cost to Install?

Geothermal energy is less common than residential solar panels, so the costs are still relatively high. On average, homeowners might spend $2,214–$4,465 for a geothermal heat pump alone. However, installing the entire system could range from $12,000 to $38,000.

The cost includes excavation, ground looping, the type of system you purchase, new ductwork and labor. Your home’s square footage and landscaping could also affect the hefty price tag.

Fortunately, residents can take advantage of federal and state tax credits and manufacturer rebates. Thanks to the Biden Administration’s Inflation Reduction Act, the Residential Clean Energy Tax Credit has been extended. This means homeowners can receive a 30% tax credit for energy efficiency improvements through January 1, 2033.

The makers of heat pump geothermal systems may also offer discounts on products. Geothermal energy installers in Alabama often work with particular manufacturers and can provide additional information regarding reduced costs. 

What Is the Cost-Effectiveness of Geothermal Heat?

On average, Alabama residents spend $148 on electricity monthly — $398 for all their essential utilities. When households take advantage of federal tax credits and product rebates, the cost-effectiveness is tremendous over a heat pump’s life span.

A moderate-income family can install a heat pump for about $6,000 — from $16,000 before they get a Home Electrification and Appliances Rebate and the Energy Efficient Home Improvement Credit. 

Suppose a geothermal system drives their monthly utility bills from $150 to $60 per month — homeowners will save about $1,080 annually or $6,960 after 12 years. Considering heat pumps can last over 20 years if well-maintained, savings may be significant in Alabama. 

What Are the Benefits of Residential Geothermal Energy?

Geothermal energy benefits the environment as much as it does Alabama residents’ pockets. According to the Office of Energy Efficiency and Renewable Energy, geothermal heat is extracted with zero fossil fuels, such as gas, oil and coal. It generates only one-sixth of the carbon dioxide in natural gas and almost no nitrous oxide and sulfur dioxide. 

It is also available at 90% capacity 24 hours a day year-round, meaning Alabama residents don’t have to worry about the power going out during hurricane season or other inclement weather.

Who to Call: 3 Geothermal Energy Installers in Alabama

Residents interested in clean residential power can call geothermal energy installers in Alabama. Several heating and cooling experts in the state have the skills and expertise to do the work. Rest assured, the following companies can take care of your geothermal needs.

Douglas Cooling and Heating

Douglas Heating and Cooling serves the Birmingham area and offers full-service geothermal energy services, including installing, repairing and replacing heat pump systems. With proper care, the company says heat pumps will last 20 years while the loop systems last up to 50 years. The HVAC specialists at Douglas can tell you whether your home meets geothermal requirements for optimal performance and energy efficiency.

United Heating & Air

Montgomery and the surrounding areas rely on United Heating & Air to install and maintain geothermal heating. As United points out, customers don’t have to worry about having backup heat or an outdoor unit. Because the water loops are underground, there are no disruptions from outdoor conditions either. Prospective customers can call United specialists for a free consultation and estimate to determine the costs of installation.

Southeastern Cooling

Southeastern Cooling serves several cities in southeastern Alabama, including Dothan, Columbia, Enterprise and Pansey. The company’s experts can install a geothermal heating system in new construction or retrofitted structures. Residents worried about costs can also sigh relief as Southeastern Cooling offers Alabama Power Smart Financing with lending rates from 9.9% to 19.9% on purchases from $2,000 to $25,000.

Tap Into Clean Geothermal Energy in Alabama

Alabama residents are fortunate enough to have access to numerous energy resources to power their homes. While geothermal heat is a newer market, it has the potential to expand the state’s renewable energy portfolio exponentially. Those ready to tap into clean energy for their homes and save money should call expert geothermal energy installers in Alabama to get started.