What are the eligibility requirements for a geothermal heat pump?

If you are planning to install a ground source heat pump or geothermal system and receive the incentive from the Renewable Energy path under the Home Performance Program, make sure it is eligible by referring to these guidelines.

Offer availability:

  • System must have a coefficient of performance (COP) equal to or greater than 3.5 based on the efficiency of a closed-loop system.
  • System must have an energy efficiency ratio (EER) rating equal to or greater than 15.
  • System must have a multi-stage compressor.
  • The air handler must have an electronically commutated motor (ECM). An ECM is sometimes referred to as a variable-speed, constant air flow, constant-torque, electronically efficient (EEM) or X-13 motor. A permanent split capacitor motor (PSC), single- or multi-speed, does not qualify.
  • Installed systems must include an air-cooling option.
  • System must be the primary heating and cooling source for the site.
  • A Pre-Qualified Equipment List is available at
  • Large commercial (i.e. three-phase) units are ineligible under this application. Contact Focus on Energy for more information.
  • Fuel Eligibility
    • Geothermal Heat Pump System with Auxiliary Electric Resistance/LP:
      • Limited to customers of participating electric utilities who do not have access to natural gas service. Focus on Energy will verify that natural gas service is not available to the customer prior to processing an application. Verify your utility here:
    • Geothermal Heat Pump System with Auxiliary Natural Gas:

Incentive calculation example:

  • Residential (1 to 3-unit, owner-occupied or rental) and Business (any property outside a 1 to 3-unit home) installations both receive a $650 incentive

To be eligible to participate, the following requirements must be met:

  • System must be installed on a site served by a participating electric utility. Verify your utility here:
  • System and components must have a minimum of a five-year warranty.
  • Incentive cannot exceed cost to customer.
  • Systems purchased and installed between January 1, 2019 and December 31, 2019 are eligible for funding under the 2019 program year only.
  • The only costs eligible for incentives are materials, equipment, and external labor.
  • Funding is limited and available on a first-come, first-served basis on an annual basis. Check remaining funding at
  • The program is not responsible for items (i.e. applications, supporting documentation, incentive checks) lost or damaged in the mail.
  • Focus on Energy will only pay one incentive for each technology per site per calendar year. Incentives paid on this application cannot be claimed on another Focus on Energy application. Similarly, incentives can only be paid to one person or entity.
  • All equipment installations are subject to verification inspection by the program to ensure the equipment is properly installed and operating. Participants must allow, if requested, the program or a program representative reasonable access to their home or business to verify the installed equipment.
  • You must be a current customer of a participating electric utility in Wisconsin at the time of equipment purchase and installation. Visit to verify eligibility.
  • The system is purchased new. Resale equipment, new parts installed in existing equipment, or equipment that is leased, rebuilt, rented, received from insurance claims, received from a warranty, received from a grant, or won as a prize do not qualify.
  • Equipment is installed by a professional contractor with a valid Wisconsin State professional contractor’s license, appropriate insurance, and permits.
  • Equipment is installed conforming to all applicable building, local, state and federal codes, standards, ordinances and regulations, and manufacturer specifications.
  • The system is installed in a property owned by the applicant, or the applicant has received permission from the property owner to install the equipment. If you do not own the property where this equipment is installed, as a residing tenant you are responsible for obtaining the owner’s permission to install the equipment for which you are applying for an incentive. Your submission of this application indicates that you have obtained this permission.
  • All necessary utility service improvement costs are the responsibility of the customer.
  • All necessary service improvement costs, including transformers and service lines, are the responsibility of the customer.
  • System installations must be in compliance with all state, local and federal codes, standards and requirements, including any and all applicable utility standards.
  • System must be installed in conformity with the manufacturer’s specifications and all applicable codes and standards.
  • System owners and installers must obtain all required permits.
  • If the project site is serviced by a participating Focus on Energy utility and uses a non-residential rate, the project site does not have to be owned by the applicant. The project/system equipment, however, must be owned by the applicant in order to qualify and confirmation of this ownership should be provided. System ownership must revert to the property owner after a specified period of time, not to exceed 25 years.
  • In order to receive a commercial incentive, the system must be connected through a non-residential rate meter.
  • Allow approximately 8-10 weeks for your completed application to be processed. Incomplete applications cannot be processed. Failure to complete the application in full and provide the required supporting documentation will either delay the payment process or result in your application being denied. Receipt of an application does not guarantee payment of an incentive.
  • Focus on Energy will only pay one incentive for each piece of equipment. Incentives paid on this application cannot be claimed on another Focus on Energy application. Similarly, incentives can only be paid to one person or entity (i.e., either the resident or landlord, not both).
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