Geothermal Rebates

The cooperative offers rebates to members who install geothermal systems. If you are having a geothermal system installed, please contact the cooperative prior to the installation to make sure it qualifies for our geothermal program. There is also paperwork that will need to be completed by the member and geothermal contractor.  Find out about geothermal and the incentives offered below. 

What is geothermal?

Geothermal is the most energy efficient and economical resource for heating and cooling your home and it is right in your own backyard. The concept is simple. A water-based solution circulates through plastic pipes (called a loop) placed underground or submerged in a pond. Heat is absorbed and carried to the geothermal unit, which extracts the heat, compresses it to higher temperatures and distributes it through the home. The process is reversed in the summer by removing heat from the home and providing very comfortable air conditioning. Ground source heat pumps provide efficiencies as high as 500%.


Tax Credit

In August 2022, the tax credit for geothermal heat pump installations was extended through 2034. Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. The credit has no limit and there's no limitation on the number of times the credit can be claimed.

  • 30% for systems installed through 2032
  • 26% for systems installed through 2033
  • 22% for systems installed through 2034

Must meet the requirements of the ENERGY STAR program which are in effect at the time of the expenditure. Tax credits includes installation costs.

The home served by the system does not have to be the taxpayer's principal residence.

Click here to view Energy Star's website for more information.

Cooperative Program Qualifications

If you are having a geothermal system installed, please contact the cooperative prior to the installation to make sure it qualifies for our geothermal program. There is paperwork that will need to be completed by the geothermal contractor. The member must also sign an agreement that explains the requirements on the geothermal program. The geothermal system must be an all-electric system and be the only source of heat in the home (any other types of heat must be removed). This does not include fireplaces or wood stoves. The geothermal system must be installed by a contractor on our Geothermal Dealer List. The loop must be closed and only plastic pipe (such as polybutylene) may be used for the loop installation. Direct expansion systems do not qualify. The geothermal system installed must be Energy Star certified and have a minimum EER of 17.1 and minimum COP of 3.6. Members with lighting, seasonal, net metering, or net billing accounts are not eligible for this program.

Download our Geothermal Booklet for more information.

Program Incentives

Butler Rural Electric Cooperative, Inc. offers the following geothermal rebates:

  • $1200 for the purchase of a new geothermal system*
  • $600 for the purchase of a replacement geothermal system*

Members with qualifying geothermal systems also receive a reduced kilowatt-hour rate on a portion of their electrical usage. The geothermal discount rate is a $.02 credit per kilowatt-hour used between 1001-2501 kilowatt-hours from September through May. In order to qualify for the geothermal rebate, members must use a contractor from our participating Geothermal Contractor List. All contractors are International Ground Source Heat Pump Association (IGSHPA) certified and have agreed to install systems according to cooperative standards. Loans are available at a fixed 3.5% interest rate. For more information on loans, click here.

*Incentives can change and are not guaranteed. Call the office to confirm current program incentives prior to geothermal installation.

Geothermal Contractors

Click here for a full list of heating and cooling contractors who are qualified installers of geothermal systems.

Contact us!

If you have questions or want more information about the geothermal program, fill out our Contact Form.