Does anyone know if you can claim the geo tax credit for installing a closed loop to an existing wshp systme that is using a well (open system) right now?


Thanks!

There really are no geo police, or tax geo police. This would be a better question for your tax proffesional.

Hope this helps
Eric

Please do consult tax advisor(s).

If you need (want) a 100% hotwater 'instant' recovery, and different Cooling to 1 or 1.1/2 tons, say, as a "NEW GT E-Star Compliant System"
then
consider all the costs and an oversized loop T'd-in for your application adding (maybe) a chilled/HW ducted HX coil. I believe the rules read "New System" for you to verufy about all things...

In my world if the exchanger failed I would certainly make the claim that the closed loop "was new".

It is my impression that the heat pump activates the tax credits subsequently allowing subsidy on the "properties" such as loops, ducts etc. So I would presume that your loops would not be covered.
That said while Im sure its not your preference, open loop installers often oversize equipment (as the next size up is hundreds more not thousands). So you might find a redesigned system with a smaller heat pump and less loops in the ground that does qualify for the tax credit, may not cost much more in the wash.
For example if one of the old guys in my AO had a 45,000 btu load they would generally install a 4 ton heat pump.
Operating cost analysis with that load and our electric rates show that the 3 ton with a little extra auxiliary may only cost $35 more a year for all heating cooling and hot water production.
So again in my AO if the 3 ton would run around 15K (as the electrical infrastructure is already in place) then after tax credit you would be out $10,500 but in to a new heat pump with warranties and presumably greater efficiency.
A 4 ton horizontal ground loop package with a new system is $1,650/ton here (or $6,600) and might be a little more on a retrofit where additional work may be required (disconnecting water controls, getting rid of drain.......). So your net price difference may be as little as $3,500. That gap closes if we are discussing vertical loops instead.
There is a market for used heat pumps as well that may mitigate some of the additional cost.

Operating cost differences assume we are comparing similar heat pumps. If your heat pump is older, I think it's a no brainer- in my AO.
Get estimates on doing both as installation costs vary wildly based on your regional cost of doing business. Operating costs vary just as wildly based on electric costs.

BTW, why are we switching to closed?

Tax credits are linked to the heatpump. You have to have a manufacturers statement of energy star compliance to qualify. Follow Joe's advise, make sure that a heatpump with a serial number and an energy star qualification is showing up on your invoice.

If there were any question about water quality and quantity it would make sense to plan on closed loop. Do folks have another source of potable water in your area? you make it sound as though they are drilling wells exclusively for the geo systems.
j

No concerns about water quality or quanitity at this time, based on existing /surrounding wells, but water quality can vary widely without going too far.  And some on this site have indicated that water quality can start good and change over time as well. 

No we wouldn't be installing a well just for the geo system, they need a well anyway for domestic... so aside from the above water quality risk, it's a really cheap heat exchanger.