In Alabama GeoExchange (also called a geothermal or a ground source heat pump) heating and cooling systems have been at work for years with dependable, money-saving and energy-conserving results. A GeoExchange system takes advantage of the earth's near-constant temperature to provide the highest energy efficiency for heating and cooling available today.

More home owners in Alabama are realizing the savings. A GeoExchange system is more than three times as efficient as the most efficient conventional system. Because GeoExchange systems do not burn combustible fuel to make heat, they provide three to four units of energy for every one unit used to power the system which results in heating and cooling bills 50-70% less than using propane or oil.

Geothermal heat pumps are a great investment for an Alabama resident. Geothermal heat pumps can efficiently generate comfortable heat in addition to cooling and dehumidifying the moist Alabama air. In the southern half of the state, soil conditions are favorable for drilling but installations north of Montgomery have to contend with rock formations.

Alabama Tax Credits for switch to Geothermal

Federal: 30% Federal Tax Credit on the complete system installation
State: N/A
Local: Many Local Incentives are available based on your city in Alabama.
Visit the links below: Local Geothermal Incentives in Alabama & Alabama Renewables & Efficiencies Incentives & Policies

Alabama Rebates

Central Alabama Electric Cooperative, a Touchstone Electric Cooperative, offers the Touchstone Energy Home Program. Touchstone Energy Homes with a dual-fuel or geothermal heat pump qualify for rebates and a free water heater. In order to qualify as a Touchstone Energy Home, homes must follow seven of the 11 guidelines listed on the program web site. Rebates range from $400 to $1,200, depending on tonnage and system type. Touchstone Energy homes with an air-source, dual-fuel or geothermal heat pump are eligible for a free energy-efficient water heater.

South Alabama Electric Cooperative (SAEC) is a part owner of Alabama Electric Cooperative which has a primary generation facility in Andalusia, Alabama. SAEC offers a variety of incentives to residential members to save energy in their homes. New and existing homes meeting SAEC's insulation requirements will receive a cash rebate of $200 per ton for dual fuel heat pumps. Geothermal units qualify for $600 per ton if the home meets Touchstone Energy Home requirements.

Alabama Loan Programs

Through a public-private partnership with PowerSouth, Alabama's Local Government Energy Loan Program offers zero-interest loans to local governments, K-12 schools, and public colleges and universities for renewable energy systems and energy efficiency improvements that will eventually have a payback through utility savings. Under the program, municipal and county governments, and colleges and universities may borrow up to $350,000 for eligible projects, and K-12 schools may receive up to $350,000 per campus or $500,000 per school system for eligible projects. Eligible renewable energy resources generally include biomass, hydro power, geothermal energy, wind energy, and solar energy.

The application is available on the program web site. After approval, an energy audit must be completed to identify necessary improvements. Following installation, the loan recipient must submit an annual energy-use report to the Local Government Energy Loan Program.

AL Geothermal Testimonials

Anonymous from Theodre says:
Excellent Comfort & Savings
Installed by:

Anonymous from Goshen says:
Using Geothermal since house was built in 1999. Split unit due to builder screw up. Would have preferred all in one type. 4ton unit for a 2600 ft2 house with lots of windows, in south alabama, and have lots of insulation. Works fine size-wise. Minor issues, but would do it all again. I rented a backhoe and dug the trenches so that saved on installation. got an 800 rebate from power company back then, that was all. Work on it myself since the only things that have die have been run capacitor(3-4x) and the service disconnect box needed replacing at 14yrs. Recommend getting a flow meter for the waster loop so you can tell it is moving water properly and pumps are not worn.
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