While tax credits may play a part for the new interest in geothermal heat, in my opinion I also believe the slowdown in new home construction has nudged many forward thinking contractors to expand their operations into new fields of the industry. While that may not be a scientific fact, it makes perfect sense for a company to offer more services to their customers to stay busy. Like the old saying says; "Follow the money!"

Since geothermal heat is often called "green heat" this may be an attractive incentive for contractors like:

*Well Drilling companies
*HVAC contractors
*Pipefitters
*And even Standby Generator companies

To retool their business a bit, educate employees, and get involved in this growing field to fill in for lost profits left by the slow down.

While geothermal energy is a very attractive heat source, the major hurdle facing the industry right now is the price. Material costs alone can be 50% -- 100% higher than standard heating and cooling systems. Extra labor costs, can include deep well drilling and ground loop tubing installations. Plus most contractors install a standby power generator to keep the geothermal system up and running under any condition. However, if sized right, the standby generator can also power the entire home so that investment pays off outside of the system itself.

As more and more contractors get competitive in this field, the prices should come down making geothermal energy a more mainstream and popular industry for the future. Plus, the current tax credit is an attractive incentive for homeowners to take advantage of now. So, if your a contractor looking to stay ahead of the curve, now may be the time to "dig deep" in your pockets and invest in geothermal technology for your business.