Time Is Running Out to Replace Aging Geothermal Systems Before the 2025 Tax Credit Ends
If your home already has a geothermal system that’s over 10 years old, you’re ahead of the curve when it comes to energy efficiency and comfort. But even the most reliable geothermal equipment has a lifespan—and replacing it at the right time is critical to avoid costly breakdowns and missed savings.
With the federal geothermal tax credit ending on December 31, 2025, this fall is your final opportunity to replace aging geothermal units and save 30% on your project.
While it’s almost too late for brand-new geothermal installs, there is still time to replace failing or inefficient systems before the deadline.
Why Existing Geothermal Systems Eventually Need Replacement
A well-designed geothermal system can last 20–25 years, but certain components begin to fail long before that—especially in Nantucket’s harsh, salty coastal climate.
Key warning signs it’s time to replace your geothermal equipment:
Your system is 10+ years old and no longer heating or cooling efficiently.
Frequent breakdowns or rising repair bills.
Outdated technology that lacks variable-speed controls or integrated smart automation.
Failing ground loop pumps, compressors, or circulation issues.
R-410A refrigerant, which will be phased out starting in 2026, making repairs more expensive and parts harder to find.
A mid-season geothermal failure on Nantucket isn’t just inconvenient—it can leave your home vulnerable to frozen pipes, costly emergency calls, and disrupted ferry schedules for parts and labor.
The 30% Geothermal Tax Credit: Last Year to Use It
The Residential Clean Energy Credit provides homeowners with 30% back on the total cost of qualifying geothermal upgrades, including:
New indoor and outdoor heat pump units
Installation labor
Integrated control systems and loop repairs
However, under the One Big Beautiful Bill Act, this tax credit ends permanently for systems installed after December 31, 2025.
There is no step-down period—this is the final year to claim the credit for geothermal replacement projects.
Example: Replacing an aging geothermal system for $40,000 could result in $12,000 in direct tax savings—but only if the system is operational and documented by year-end.
Combine With Mass Save Rebates
Nantucket homeowners replacing geothermal units can stack the 30% federal tax credit with Mass Save rebates for additional savings.
Rebates can be worth $10,000+, depending on the system’s size and configuration.
Programs are only guaranteed through 2025, as requirements may change in 2026.
North Winds Mechanical is a Mass Save Certified Contractor, ensuring you qualify for every available rebate.
Check current rebates here: Mass Save Rebates
Why Replacing Now Beats Repairing Later
Many homeowners think they can keep repairing an older geothermal system indefinitely. Unfortunately, that approach becomes riskier every year as parts age and refrigerant regulations change.
Three key reasons to replace now:
1. Avoid R-410A Supply Issues
Your older geothermal unit likely uses R-410A refrigerant, which will face tariffs and production limits starting in mid-2026.
Repairs will become more expensive and replacement parts harder to source.
Read more from the EPA’s refrigerant phase-out guide.
2. Protect Your Home From Winter Failures
On Nantucket, a mid-winter geothermal failure could leave your home unheated for days while waiting for ferry shipments or service calls—especially during storms.
Replacing now ensures reliable performance through this winter and beyond.
3. Maximize Savings Before the Credit Disappears
Between the federal tax credit and Mass Save rebates, you can cut your replacement cost by 40–50%.
Waiting until 2026 means paying full price with no credits or rebates.
Why Choose North Winds Mechanical
North Winds Mechanical is Nantucket’s only fully on-island HPLN-certified contractor, specializing in high-end geothermal systems and replacements.
We provide:
Geothermal system replacements
Cold-climate heat pump upgrades
Integrated smart controls
24/7 emergency HVAC repair
Our team has decades of experience navigating Nantucket’s unique logistics, permitting, and seasonal challenges to ensure projects are completed on time and to the highest standards.
Final Call: Upgrade Before the Deadline
If your geothermal system is showing its age, don’t wait until it fails in the dead of winter—or until tax credits vanish forever.
There’s still time to act, but schedules are filling up quickly.
📞 Call North Winds Mechanical today at 508-825-6297
🌐 Click Here to book a free consultation.
Time may be running out for brand-new geothermal installs, but there is still time to replace aging systems and lock in thousands in savings before December 31, 2025.
