April  2010 Update

Climate Master (the world's oldest and largest manufacturer of geothermal systems) after observing our capabilities and history first hand for quite some time, has asked Egg Geothermal to handle the distribution, engineering and sale of their products to major chains. They have also included Egg Geothermal on a number major corporate projects to assist them. As a result Egg Geothermal has begun Engineering work on a project to retro-fit a major worldwide restaurant chain starting in Georgia. We are working with the US military at many levels, Hotel chains, Production facilities, Universities including USF and FIU on federal testing, and the American Dairy Farmers (on a geothermal system to cool the cows and increase production by up to 20%). There are far too many current opportunities to mention here.

As shown on the right, geothermal heat pumps dramatically outpace every other technology payback, and electrical demand reduction, which makes the technology by far the most viable in the renewable industry. As a result, the federal government has instituted a number of considerable tax rebate and incentive programs. Below is an outline of current programs in effect:

Geothermal Heat Pump Residential Tax Incentives

• Federal Income Tax Credit:
• 30% of total GHP system cost
• No cap on maximum credit
• Can be used to offset AMT tax
• Can be combined with other tax credits
• Can be used in more than one year

Geothermal Heat Pump Business Tax Incentives

• Federal Income Tax Credit:
• 10% of total GHP system cost
• No cap on maximum credit
• Can be used to offset  AMT tax
• Can be used in combination with subsidized financing
• Can be used in more than one year

• Accelerated Depreciation:
• 5 year MACR depreciation for entire GHP system
• Eligible for bonus depreciation

Geothermal Heat Pump State Incentives

• 37 States have Financial Incentives for GHPs
• Many are new
• Sales tax and property tax exemptions, income tax credits, grants
• 17 States have tax credits or grants

• 28 States have Regulatory Incentives for GHPs
• Green public building requirements
• 36 States have Utility Incentives for GHPs
• Voluntary DSM
• Mandated RES and EES
• loans and rebates

In addition to the programs above, additional legislation is in congress that will mandate that electric company co-ops and the federal government subsidize loans to individuals and businesses for the installation of geothermal heat pump products. Another bill is currently in committee review in the House of Representatives (see here) that mandate ALL electric companies to follow this program.

As efficient as geothermal heat pumps are for businesses in general, it is even more so for Hotels. Geothermal AC units are able to take advantage load sharing technology, allowing for not only the use of the earth's constant temperature, but also the contrasting temperatures that are typically wasted throughout a hotel. IE, the heat from the laundry room can be captured and used to heat water furnaces. The overall energy cost savings for all of these systems are exponential. An illustration of how this method works is above.

The opportunity to capitalize on profitability of this emerging market is quickly passing. In the past 52 weeks Climate Master, the world leader in geothermal heat pump production, have doubled their production output.

Geothermal Heat Pump Market Perspective

North American Geothermal Industry Shipments

• Single Family Residential -  63% of Total
• New Homes 65%
• Existing Homes 35%

• Commercial – 37% of Total
• Schools and Universities
• Public and Government
• Religious Buildings
• Multi-family Housing
• Office Buildings
• Retail

 

 

 

 

 

 

If you’re in this area, you know enough about geothermal air conditioning technology to talk the talk. This area is for those of us that realize that this is a disruptive technology *and will not be going away until at least 2016

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Geothermal Air Conditioning is called GHP by insiders. Now that you’re inside I’ll share a few items of interest that will solidify your desire to become involved financially.

Take the chart to the right and compare it with the “North American Geothermal Shipments” chart. You’ll not only see that this mirrors a disruptive technology, it makes it an overwhelming example. This is because shipments of Standard Air Conditioners are dropping, and (by almost 150,000 –units per month when you compare Feb 2007 with Feb 2009) GHP are increasing (up from 50,000 to 100,000 in the same period).

These figures are prior to the enacting of the uncapped Federal Tax Credits that started in late February of 2009. As of January 2010, our sales are up 1600% from 2009 in GHP’s.
In 2011, all Federal Tax Credits end for all types of air conditioning. That is all except Geothermal. They continue on with the full credit of 30% (and better for commercial). But there are a couple of other items that will make the current incentives almost silly, though they will still be in force.

The Feingold Ensign Bill will allow GHP’s to be funded and paid for by utilities as they partner with GHP contractors to install these systems in homes and businesses. The utility advantages include government backing for the loans, funding for the homeowner, and net positive repayment on the electric bill. To put it simply, a homeowner that wishes to have a $40,000 GHP installed would simply call their utility, and the utility would pay the contractor to do the job. The utility adds a small fee to the bill which is less than the dollars saved, and the homeowner continues to pay that until the federally backed funds are repaid.

However there are more insights of which you should be aware. As you may know, I was approached by McGraw-Hill in November of last year to write a book on Geothermal Air Conditioning. This book will be out for worldwide distribution, and is already for sale in Europe in at least 2 languages. The purpose of the book is not to show someone how to install a GHP, but rather to educate the consumer and the contractor alike on the process, the do’s and the don’ts, in 320 pages or so, with plenty of helpful illustrations.

My Publisher said that when they began to discuss this project in 2009, the board in their Professional Division was of an opinion that GHP’s may become the minimum standard for new construction domestically. Really! She also stated that the first book on a subject (this will be the first comprehensive non-text book solely dedicated to GHP’s) in the market place becomes the standard has incredible staying power.

My co-writer, Brian Howard is editor of the largest green website in the world, (see link)  and writes regularly for O Magazine, National Geographic’s The Green Guide, as well as other publications, including Men’s Health, Popular Mechanics Online, Miller-McCune, Editor and Publisher Online, AlterNet, Connecticut Magazine, Oceana, Brittan’s’ Ergo Living, NewAssignmnet.net, Clamor Fairfield County  Weekly and newsletters from Environmental defense and the Appalachian Mountain Club. Needless to say, publicity for the book is a given. My publisher told me to be prepared for Oprah and other national television pieces.

All of this aside, we have national and worldwide attention, and through our engineering and worldwide distribution capabilities, we are the most recognized name in geothermal air conditioning in the country, and perhaps the world.

To become involved, email myself jay@goeggsystems.com or my CFO, Christina christina@goeggsystems.com , or please call the office @ 866-960-1242. We may able to design an investment that is right for you!