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Geothermal Heat Pump Rebate

Geothermal rebates are available from the Connecticut Energy Efficiency Fund and the Connecticut Clean Energy Fund. The Energy Efficiency Fund incentive programs are administered by The Connecticut Light and Power Company and The United Illuminating Company. The Clean Energy Fund incentive program, which is managed by Connecticut Innovations, is being conducted in parallel. Projects approved under the Clean Energy Fund incentive program must meet the energy-efficiency and performance verification requirements of the Energy Efficiency Fund program.

Customers must apply to both programs
in order to qualify for either incentive

If you are replacing equipment in an existing home, please click on the link below:

The 2010 Geothermal Heat Pump Retrofit Prequalification Application has been created to verify existing homes meet required energy-efficiency levels to maximize benefit to customers.

The Energy Efficiency Fund retrofit rebate is for replacement of existing heating and cooling systems to geothermal closed loop or direct expansion, packaged or matched coil/split* including water to water-designed types up to six tons per unit that are installed and operating between January 1, 2010 and December 31, 2010.

*Multiple sections and fans must be AHRI matched.

The Energy Efficiency Fund rebate is $500 per nominal AHRI-rated cooling ton for successfully commissioned geothermal systems to a maximum six-ton unit. The geothermal rebate is capped at $1,500 per dwelling unit.

The Clean Energy Fund rebate is $2000 per nominal AHRI-rated cooling ton for successfully commissioned geothermal systems to a maximum six-ton unit. The geothermal rebate is capped at six tons per dwelling unit.

Geothermal equipment must be a closed loop or direct expansion type and ENERGY STAR ® qualified in order to be eligible for a rebate.

Factory testing must be done under appropriate test conditions:
AHRI/ISO/ASHRAE Standard 13256-1 closed loop systems;
AHRI/ISO/ASHRAE Standard 870 for DX systems

A list of ENERGY STAR geothermal equipment can be found at:
www.energystar.gov/index.cfm?c=geo_heat.pr_geo_heat_pumps

Be aware of the time limitations of the rebate offers!

Existing homes must prequalify for the Geothermal Rebate program. Both the Energy Efficiency Fund and the Clean Energy Fund rebates must have approved applications and will be paid separately. Applicants must meet the requirements of both programs to be paid on either rebate. The Clean Energy Fund rebate detail is located at www.ctcleanenergy.com.

Step 1) A prequalification application must be submitted to the Geothermal Project Coordinator. The application must be filled out completely, truthfully and accurately. Energy Efficiency Fund Application Form: Geothermal Heat Pump Retrofit Prequalification Application [PDF:57 KB]

Step 2) Mail the completed prequalification application to:
Tammy Wilson, Geothermal Project Coordinator
Connecticut Light & Power
66 Curtis Street, New Britain, CT 06052

Once approval is granted, an Energy Efficiency Fund geothermal rebate application will be provided.

Step 3) Apply to the Clean Energy Fund geothermal rebate program. The application is located at: www.ctcleanenergy.com.

Step 4) Choose a Clean Energy Fund approved contractor for your installation.

Step 5) Once the system is operational, the HVAC contractor must submit a Verification of Installed Performance report (VIP) to the Geothermal Project Coordinator, Tammy Wilson. The report must be within 15% of the AHRI-rated energy use specification. This report shall be completed at:

If you are building a new home, please click on the link below:

For new residential construction geothermal measures, all applicants must participate in the Residential New Construction program prior to being eligible for a new home geothermal Energy Efficiency Fund rebate. New homes must be ENERGY STAR® qualified, for which there are additional incentives. Details of the Residential New Construction program may be found at: www.cl-p.com/Home/SaveEnergy/Rebates/NewConstruction.aspx

The Energy Efficiency Fund new home rebate is for installation of a geothermal closed loop or direct expansion, packaged or matched coil/split* including water to water-designed types up to six tons per unit that are installed and operating between January 1, 2010 and December 15, 2011.

If you are building an addition and/or doing substantial renovations to your home and plan to put in a geothermal system, you may be eligible under the New Homes program or the retrofit program. Please contact the Residential New Construction Program Administrator, Justin Lindenmayer, to discuss the scope of your project and to determine your eligibility.

The new home Energy Efficiency Fund rebate is $500 per nominal AHRI-rated cooling ton for successfully commissioned geothermal systems. The geothermal rebate is capped at $1,500 per dwelling unit.

The new home Clean Energy Fund rebate is $1200 per nominal AHRI-rated cooling ton for successfully commissioned geothermal systems. The geothermal rebate is capped at six tons per dwelling unit.

Applications for both the Energy Efficiency and Clean Energy Funds must have been submitted and meet the requirements of both programs to qualify for either rebate. Rebates will be paid separately. The Clean Energy Fund rebate details are located at: www.ctcleanenergy.com

Geothermal equipment must be a closed loop or direct expansion type and ENERGY STAR ® qualified in order to be eligible for a rebate

Factory testing must be done under appropriate test conditions:
AHRI/ISO/ASHRAE Standard 13256-1 closed loop systems
AHRI/ISO/ASHRAE Standard 870 for DX systems

A list of ENERGY STAR geothermal equipment can be found at:
www.energystar.gov/index.cfm?c=geo_heat.pr_geo_heat_pumps

Be aware of the time limitations of the rebate offers!

Step 1) Submit application for Energy Efficiency Fund Residential New Construction program:
www.cl-p.com/Home/SaveEnergy/Rebates/NewConstruction.aspx and the Clean Energy Fund Geothermal Rebate at www.ctcleanenergy.com

Step 2) Submit application for the Clean Energy Fund Geothermal Rebate at: www.ctcleanenergy.com

Step 3) Once the system is operational, the HVAC contractor must submit a Verification of Installed Performance report (VIP) to the Residential New Construction Program Administrator, Justin Lindenmayer at 860-832-4915. The report must be within 15% of the AHRI-rated energy use specification. This report shall be completed at:

In addition to the Energy Efficiency Fund and Clean Energy Fund rebates, you may qualify for an ENERGY STAR tax credit. Information on tax credits can be found at: www.energystar.gov/index.cfm?c=products.pr_tax_credits#s6 or contact your tax professional.

Q: How does it work?
A: Geothermal heat pumps take advantage of the earth’s constant temperature to provide efficient heating and cooling. A few feet beneath the earth’s surface, the temperature of the ground remains fairly stable year-round, ranging from 45◦F (northern latitudes) to 70◦F (deep south). Like a cave, this ground temperature is warmer than the air above it during the winter and cooler than the air during the summer. Geothermal heat pumps take advantage of these conditions by exchanging heat with the earth. This allows the GHP to heat, cool, and if so equipped, supply the home with hot water.

A GHP system collects the earth’s natural heat through a fluid-filled series or loop of pipes made of copper or plastic that is installed below the surface of the ground. The pipes can also be submersed in a body of water such as a lake or pond. Fluid circulating in the pipes carries the earth’s heat to the home. In the winter, an electric compressor and heat exchanger concentrates the earth’s heat and releases it into the home at a higher temperature and then distributes it through ductwork or pipes. In the summer, the process is reversed so that excess heat is drawn from the home, expelled to the pipes and absorbed by the earth.

Geothermal heat pumps are efficient because they are using electricity to remove heat from the ground rather than converting electricity directly to heat. During the summer, geothermal heat pumps take advantage of the cool earth to provide efficient air conditioning. Geothermal heat pumps can also use the waste heat from air conditioning to provide “free” hot water heating in the summer.

Q: What are the benefits?
A: Because geothermal systems do not rely on fossil fuels to operate, they do not rely upon combustion. Therefore, there are no direct emissions, fuel tanks, or chimneys. With few moving parts, these systems are reliable and have low maintenance costs.

Q: How expensive are geothermal systems?
A: Geothermal Heat Pumps have a higher installed cost compare to traditional systems due to the ground coupling. However, the low-operating cost can save money over the life of the system.

Q: Do geothermal systems provide free heating? How much can I expect to save with a geothermal system?
A: Geothermal systems do not provide free heat. Rather, they use electricity to operate single or multiple pumps, fans and compressors. Depending on the size and design of the system, the electricity consumption can be significant. However, since the systems are taking advantage of the earth’s constant temperature, they are an efficient heating system and may save anywhere from 20 percent to 70 percent compared to a conventional heating and cooling system.

Q: Are they safe?
A: Geothermal systems are extremely safe. There isn’t any exposed outdoor equipment, and geothermal units do not rely on combustion so there isn’t a need for fuel tanks or gas lines.

Q: How quiet are geothermal units?
A: Units are extremely quiet. Since there isn’t any visible outdoor equipment, outdoor activities are not disrupted by the cycling of a fan.

Q: How is heat transferred between the ground and the home?
A: The most common type of geothermal system relies upon a closed loop which circulates fluid or refrigerant through the ground. These fields are either vertical and/or consist of horizontal trenches, and can run several hundred feet or more.

Q: Does it only provide heat?
A: Geothermal Heat Pumps have the ability to provide both heating and cooling with the simple flick of a switch on the indoor thermostat. In winter, heat pumps extract heat from the ground and distribute it throughout the home. In summer, the process is reversed and heated air is drawn from the home and allowed to be absorbed into the ground.

Q: How can I find out more about the rebates?
A: Additional information is also available on the Connecticut Clean Energy Fund website.

In addition to the Connecticut Energy Efficiency Fund rebates, you may qualify for a tax credit. Information on tax credits can be found at EnergyStar.gov or contact a tax professional.