Embedded Files
Permitting:
The permitting steps required to incorporate a geothermal heating and cooling system into a multi-family residential home is quite simple! A list of steps is provided below to get started. Please note this is for a closed vertical-loop GDHC system in Grand Rapids, MI and additional permits apply for an open loop system.
Useful links:
Best practices for vertical closed-loop geothermal system installation
Kent County Environmental Health Services : Permit for geothermal bore hole
MI EGLE joint permit application (wetlands or high-risk erosion area)
City of Grand Rapids, permits required as part of commercial building permit
MI EGLE environmental mapper (land use restrictions and contaminations)
U.S. Fish and Wildlife Service - National wetlands inventory (interactive map)
Financial Incentives:
The Inflation Reduction Act released numerous incentives to be available for investing in geothermal as an energy source.
Investment Tax Credit (ITC) for Energy Property
Description: Provides a tax credit for investment in renewable energy projects.
Base credit amount: 6% of qualified investment (basis of energy property).
Bonus credit amount: Credit is increased by 5 times (30% of qualified investment) for projects meeting prevailing wage and registered apprenticeship requirements. Credit is increased up to 10% for projects meeting domestic content requirements for steel, iron, and manufactured products. Credit is increased by 10% if located in an energy community*.
Direct pay eligibility**: Yes, for tax-exempt organizations; states; political subdivisions; the Tennessee Valley Authority; Indian Tribal governments; Alaska Native Corporations; and rural electricity co-ops.
Citation: The White House. “Building a Clean Energy Economy: A Guidebook to the Inflation Reduction Act’s Investments in Clean Energy and Climate Action.” January 2023, Version 2. https://www.whitehouse.gov/wp-content/uploads/2022/12/Inflation-Reduction-Act-Guidebook.pdf
2. Home Energy Rebate Program
Description: Provide funding to lower upfront cost of whole-home energy efficiency upgrades in single-family and multi-family homes aiding retrofitting and electrification efforts. Please note that a single address cannot receive a rebate from both 50121 and 50122 for the same measure.
Home Efficiency Rebates (50121):
Single- and multi-family households eligible. Energy efficiency upgrades modeled to save > 20% of home energy use or measured to save > 15% of home energy use.
Rebates covering higher percentage of total project costs available for households with incomes < 80% of area median income (AMI)***
Home Electrification and Appliance Rebates (50122):
Single- and multi-family households eligible for rebates for high efficiency home appliances and equipment
Qualified products and maximum rebates per product listed below
Rebates covering higher percentage of total project costs available for households with incomes < 80% of area median income (AMI)****
Citation: Michigan Department of Environment, Great Lakes, and Energy. “Home Energy Rebate Programs.” https://www.michigan.gov/egle/about/organization/materials-management/energy/rfps-loans/home-energy-rebate-programs
*An energy community is:
A census tract containing coal-fired electric generating units that have retired since December 31, 2009, or coal mines that have closed since December 31, 1999, or census tracts directly adjoining such census tracks;
A metropolitan statistical area (MSA) and non-MSA that meet a certain threshold of employment or tax revenue dependence on fossil fuels, as well as having an unemployment rate higher than the national average; or
A brownfield under the Comprehensive Environmental Response Compensation, and Liability Act (CERCLA)
Citation: The White House. "Treasury Releases New Guidance to Drive Clean Energy Investment to America's Energy Communities." April 4, 2023. https://www.whitehouse.gov/cleanenergy/clean-energy-updates/2023/04/04/treasury-releases-new-guidance-to-drive-clean-energy-investment-to-americas-energy-communities/
**Direct pay (or elective pay) is where eligible entities will be able to receive a payment equal to the full value of tax credits for building qualifying clean energy projects.
Citation: The White House. “Direct Pay Through the Inflation Reduction Act.” https://www.whitehouse.gov/cleanenergy/directpay/#other
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