Heat Pumps

Heat Pumps

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.


Ground Source

Geothermal (Ground-Source) Heat Pump

  • Most efficient heating & cooling system available, providing 70% more savings over a conventional system (i.e. gas furnace/air conditioner)
  • May qualify for our discounted electric heat rate
  • Efficient systems that transfer heat to or from the ground
  • An eco-friendly heating and cooling option: the earth’s temperature remains steady year-round and can be harnessed with a geothermal system to make homes comfortable
  • 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 extreme weather conditions

REBATE:

$400/ton NEW Closed Loop + $100 for hybrids
$300/ton NEW Open Loop + $100 for hybrids
$150/ton Replacement (no new loops installed)

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Geothermal Tax Credits

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. 
  • 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. 

State of Iowa Tax Credit:

  • Effectively a 6 percent credit (based on a formula of 20% of the federal residential energy efficient property tax credit which is currently 30%).
  • For geothermal heat pump units installed on or after January 1, 2019.
  • Available for installations to Iowa residential properties to the resident of the home.

To learn more about the state tax credit, click here or contact your tax advisor. 


 

Air source

ENERGY STAR Certified Air Source, Hybrid, Mini Split Air Source Heat Pumps

  • May qualify for our discounted electric heat rate
  • Can replace air conditioners and integrate well with your existing duct work
  • Transfers heat between your house and the outside air
  • 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 LP or natural gas in addition to electric energy, allowing for additional efficiencies

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+

REBATE - $300/ton + $250 for ENERGY STAR units

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Standard Air Source Heat Pumps

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: $200/ton

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