ENERGY HOUSE SPEAKER CONSIDERS GEOTHERMAL INCENTIVE

A state tax credit would be offered to Oklahomans buying a geothermal heat pump system if a proposed measure becomes law, House Speaker Chris Benge said Thursday.

Benge said he will file legislation for next year’s session to provide a 5 percent tax credit for residents and businesses buying a geothermal system.

The credit would defray some of the up-front costs associated with buying a geothermal system instead of a traditional heating, ventilating and air-conditioning system, Benge said. A geothermal system costs about twice as much as a conventional system, but enough energy savings can be achieved on average to pay back the investment in three to eight years.

Oklahomans installing a geothermal system into a new or existing home would qualify for the credit, as would business owners putting geothermal in their offices.

Benge, R-Tulsa, announced his proposal in the Central Oklahoma Habitat for Humanity’s Hope Crossing Neighborhood in northeast Oklahoma City, where new three- and four-bedroom brick homes are being built with geothermal heat systems.

Kim Willison, a single mother of two who moved into her Hope Crossing home last month, said she estimates her utility bills will be cut in half.

Geothermal heat pumps use a nearly constant temperature below the ground surface to heat a home or business in the winter and remove heat to cool it in the summer.

Dan Ellis, president of ClimateMaster Inc., an Oklahoma City company that makes geothermal systems, said at least 10 other states offer some type of financial incentives for geothermal systems.

A DRASTIC CUT IN BILLS

Up to 75 percent of the energy consumed in a typical home is for heating, air conditioning and water heating, Ellis said. With a geothermal system, about half the energy used in the home is provided free from the earth, which drastically cuts the amount of energy users must pay for in their utility bills.

Thursday’s announcement was the second part of Benge’s energy initiative. He earlier called for the number of public compressed natural gas stations in Oklahoma to double within five years.

"We feel very strongly that the nation needs a national energy plan and rather than sit back and wait on whether the federal government will come up with a plan or not, the state is going to take the initiative,” Benge said.

The state is going to take the initiative and develop a plan that fits Oklahoma.”

Chris Benge
House speaker

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