On February 25th the Clayton County Energy District (CCED) hosted local leaders to discuss the opportunity for savings through geothermal energy systems and federal funding. To share the community benefits of clean energy, CCED invited local legislators, municipal personnel, county officials, school representatives, churches, and other leaders in Clayton County. The event featured an expert panel discussion of two local installers. Larry and Keegan Leliefeld with Geothermal Eco Options joined from Decorah, they mainly install geothermal ground loop systems. The panel also included Dean and Doug Rocke with NEIA Mechanical which operates out of Elgin providing multiple plumbing, HVAC, and electrical services. Clean Energy Districts of Iowa REAP Coach Steve Hopkins provided information on grant opportunities for businesses. Geothermal energy systems provide various financial, sustainability, and comfort benefits resulting in reduced energy costs and cleaner air for Iowa.
Several funding opportunities for geothermal are still in place including grants, tax credits, and local utility rebates. Non-taxable entities interested in geothermal have an opportunity to access direct payments from the federal government worth 30% of the system cost. Community location and use of domestic products can increase this amount to 40% or 50%. Rural businesses can access this same 30% benefit in the form of a tax credit. They can also apply for a Rural Energy for America Program (REAP) grant to cover an additional 25%. Allamakee Clayton REC customers can receive a rebate worth $500 per ton and Alliant customers can receive $900-$1200 per ton. While the federal tax credit for geothermal energy is expected to continue, the percentages will begin to decline after 2027. By combining multiple incentives, geothermal energy users can cover 30-75% of the system cost!
Beyond financial incentives, the panelists covered the basics of geothermal technology and how it works. Geothermal energy systems offer significant savings; typical payback periods for large users range from 3-7 years. These savings mainly result from heating and cooling efficiency, for every 1 unit of electricity used to power the system, it provides 4 units of energy in return. Beyond efficiency, geothermal technology often improves air quality or comfort concerns not always possible with traditional equipment. Instead of directly heating or cooling air geothermal systems instead transfer energy to and from the ground. Below the frost line, ground temperatures hold steady at around 45-50 degrees all year round. In the winter, geothermal ground loops absorb this warmer energy and bring it into a building. In the summer, warmer air absorbed in the home is transferred to the ground outside. Geothermal systems require similar indoor equipment to traditional furnaces, but one unit can handle both heating and cooling, eliminating an outdoor AC unit. Geothermal systems can often be retrofitted with existing ductwork, reducing the need for extensive indoor renovations. Functionally, geothermal heat pumps provide constant temperature control by using lower temperature air to maintain thermostat settings throughout the day. Instead of a cycle of ups and downs, geothermal systems run more consistently which means building owners can set the thermostat and leave it.
With continually rising costs across the board for rural residents, any opportunity to reduce expenses for foundational community entities is crucial. Schools, municipal buildings, small businesses, churches, hospitals, and many other local organizations can greatly benefit from geothermal solutions. CCED continually works to build and maintain relationships with local leaders, providing resources and learning opportunities such as this geothermal event. Local leaders care deeply for their communities and share a commitment in strengthening them for the future. Similarly, the Clayton County Energy District is committed to strengthening communities by reducing energy costs, promoting wise energy use, and ensuring everyone can access clean energy benefits.
Use this link to learn more about the geothermal network in West Union: Green Up West Union
For the full recording of this event visit CCED’s Youtube Channel: Powering Smart Local Decisions: Leveraging Geothermal and Federal Funding