One of the best ways to save energy and money in your home is by heating and cooling your home with a heat pump.
Heat pumps move heat into homes or buildings during winter and out of them in summer, reducing overall home heating and cooling costs by as much as 40%, according to the U.S. Department of Energy (DOE).
They can be installed in new or existing homes with no fossil fuels, propane gas tanks, and no danger of carbon monoxide. Installing a heat pump instead of an air-conditioner provides both heating and cooling options that can enhance comfort, reduce costs, and provide a long-term heating and cooling solution.
Electric Heat Rate
Through Midland Power, there is an affordable way to heat your home. As other sources of energy (propane, natural gas) continue to fluctuate in price and challenge the monthly budget, electricity remains stable.
To help our members take advantage of energy efficient heating systems, Midland Power offers a special electric heat rate. In the simplest possible terms, the heat rate allows residential members to receive a discount for the electricity they use to heat their home. This makes electricity the new affordable way to heat your home, typically with a geothermal heat pump, air source heat pump, or resistance heat.
Find Your Buried Treasure with a Geothermal (Ground-Source) Heat Pump
Sometimes called a "ground source" heat pump, a geothermal heat pump is the most efficient heating and cooling system available and is more efficient than a gas or propane furnace.
Geothermal heat pumps are systems that transfer heat to or from the ground and use the temperature of the earth to heat and cool. Outside temperatures may vary, but the earth’s temperature remains steady year-round and can be harnessed to make homes comfortable. Geothermal systems have a much longer lifespan than traditional HVAC systems, as the loops are buried underground, not exposed to harsh weather, and the units are housed indoors, with no exposure to water, snow and winds.
To learn more, visit the Iowa Geothermal Association, visit www.iowageothermal.org.
Replacement w/ existing loop
Federal Tax Credit
In February 2018, the 30% Federal tax credit for geothermal heat pumps was reinstated through 2019 and can be applied to retroactive installations placed in service on January 1, 2017 or later. To save the most on your installation, you'll want to act fast as the credit is set to decrease each year through 2021. The credit will drop to 26% in 2020 and 22% in 2021. To learn about the state tax credit, click here.
How to claim the Federal tax credit
Use the IRS Form 5695 to claim the Residential Energy Efficient Property Credit. To learn more about the Federal tax credit and how to apply, click here or contact your tax advisor.
ENERGY STAR Certified Air Source, Hybrid, Mini Split Air Source Heat Pumps - $275/ton
An air-source heat pump transfers heat between your house and the outside air. They use a system of coils to evaporate and condense a refrigerant with the help of a compressor. During the summer, the heat pump functions as an air conditioner. During the winter, it runs in reverse and provides heat.
New technologies in air source heat pumps has also allowed for a new hybrid heat pump that uses natural gas in addition to electric energy, allowing for additional efficiencies. These hybrids also qualify for a rebate if they meet the ratings below.
To qualify as an Energy Star Heat Pump for rebates, units must have the following federal ratings:
|SEER (Seasonal Energy Efficiency)||15+|
|EER (Energy Efficiency)||12.5+|
|HSPF (Heating Seasonal Performance Factor)||8.5+|
Standard Air Source Heat Pumps - $150/ton
Standard units that are over 3/4 ton that meet the federal standards of at least:
|SEER (Seasonal Energy Efficiency)||14|
|HSPF (Heating Seasonal Performance Factor)||7.7|
Rebate Form (for both types)