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Why don't more people get geothermal

post #1 of 17
Thread Starter 
Orignial

Energy prices are continuing to rise at an alarming rate. If you own a home and have to pay for heating and cooling you know that the price to do so is becoming increasingly less affordable. What if you can pay the same monthly bill, and produce your own energy and not have to pay the energy companies for gas, propane or oil? Why not buy a geothermal system.

We decided to do some research and decide whether a geothermal system could make sense for the average consumer. As we are headquartered in Michigan, we decided this would be a great place to start. Michigan is a fairly cold place in the winter, so if a system could make sense here, it would definitely make sense in other areas.

We contacted energypath.com and geothermalspecialties.com for pricing and information. (A quick note, these are all general numbers, each particular home or business is unique.) A fully installed geothermal unit in an existing home costs roughly $16,000 to $30,000. A replacement geothermal unit is replaces both your current air conditioning and heating units.

Currently in Michigan it costs about $4500 for propane, $2400 for gas and $860 for Geothermal a year. Gas, propane and heating oil go up yearly, while the price of geothermal remains fairly constant. The prices for heating/cooling your home do not include the delivery charges or taxes that are paid.

Does it make sense to install a $20,000 unit in your home, and is it cost effective? Yes, the item that makes geothermal make sense for today's market is many. First of all, you can finance the unit. Instead of putting a bunch of money up front you can spread out the cost of the unit. Secondly, you are replacing you ever increasing bills with one bill that remains constant and is generally half of what you were paying before. The worst case scenario that we can see is that you basically are breaking even on the bills, but the way energy prices are going, we cannot see that happening.

One final note, a geothermal unit, this can be a fairly good selling item on a house. In today's housing market, any advantage you can create will help in trying to sell a home.

If you would like to find out more about buying a geothermal unit please

email us

.

post #2 of 17

Just the other day I read an article about how geothermal heat pump use grew 33% in 2006. 

 

 

And even without financial incentives from the government or energy utilities, says John Shonder of the Energy Department’s Oak Ridge National Laboratory in Tennessee, “ground-source heat pumps have the lowest life-cycle costs in several cost studies that I’ve done” of heating and air-conditioning systems….

 

The systems pay for themselves in three to eight years, depending on “location and energy prices,” Mr. Shonder said.

 

Very cool.  I'm guessing they're not more common because a lot of people aren't aware that it's an option.  I certainly hadn't heard much about it before reading this article.  Not something we need in northern California anyway though :-)


Edited by dana1981 - Fri, 15 Aug 2008 17:02:26 UTC
post #3 of 17
Quote:
Originally Posted by dana1981:

 

Very cool.  I'm guessing they're not more common because a lot of people aren't aware that it's an option.  I certainly hadn't heard much about it before reading this article.  Not something we need in northern California anyway though :-)


Edited by dana1981 - Fri, 15 Aug 2008 17:02:26 UTC


 

If you use any form of heating and cooling system it would be to your advantage to install Geothermal.  Geothermal is well worth the expense wheather you live in the hottest parts of the South or West or the coldest of the North. Geothermal is the only sensible way to go.

post #4 of 17

I own Jeff Brewer Mechanical, a full line, licensed and insured, heating and cooling company.  I have been seeing a real increase in people interested in geothermal.  It makes sense to upgrade with energy costs soaring and in the interest of helping the planet.  If you are interested in more info on geothermal, call me at 810-688-4338.  Please visit my new web site at    www.jeffbrewermechanicalllc.com  for more information about us and to see pictures of some of our work on all aspects of heating and cooling.


Edited by jeffbrewer - Thu, 5 Feb 2009 21:17:19 UTC
post #5 of 17

is geothermal an option for homes in the city where most of a person's property is taken up by the footprint of the house? I'd imagine the installation requires the drilling of quite a few deep holes. Can that be done through a basement? Is it advisable? Does it cost more?

 

A new furnace and AC unit will cost anywhere from $3k to $9k or more if you have a huge home. $16k to $30k is 3-5 times as much. I imagine that's a hard pill for most homeowners to swallow, even if it is a net gain in the long term. For similar reasons you don't see every homeowner installing solar cells on their rooftops. Yes it's a long term net gain but the pay off date is too far in the future for it to be worth it to most people.

post #6 of 17

 OK, so I’m late entering this discussion.  I agree with the trend here...geo-thermal is the way to go.  It does cost more but a 3 - 7 year payback is quite good.  The space issue Mattress mentions can be overcome in some circumstances by going down rather than horizontally. 

 

We are installing geo-thermal units in our new house, and they will use about 500 linear feet of 3/4” ID piping, filled with a conducting liquid called “Environal”.  This “loop” circulates around the 500 ft. circuit and exchanges heat from the ground.  The loop is buried outside of the home about 6 feet deep, and the ground there carries a constant 55 - 58 degrees F.  The loop can be laid out going across and back a space, but will take up a space about 20 ft by 100 ft.  An alternative is to bury the Loop down, rather than horizontally.  You should then only need  top ground space maybe 10 ft by 10 ft, or so, and going deeper, should get to warmer constant temperatures.

 

In any event, we expect the payback for our system will be 3-4 years as it will carry the bulk of the heating load for the home, and for hot water, as well as most of the cooling load for the house.  The back up system is electric, but we expect the need for that capability will be infrequent.

 

Happy to discuss further.


post #7 of 17

We need to replace our heat pump and we are very interested in the geothermal water furnace. I would be very interested in hearing how you are enjoying your water furnace. Thank you very much.

post #8 of 17

Here is a video on geothermal heating if anyone is interested in this technology.

 

post #9 of 17

take a look at Iceland. There is so much geothermal activity there that most of their electricity comes from geothermal production. In addition to this, I also saw a video that they are pushing for hydrogen fuel cell cars, they are producing the hydrogen using the geothermal. Very interesting i thought. I saw this all about a year ago so I don't remember where exactly unfortunately :/

post #10 of 17

Iceland has stepped back from hydrogen, and they're more likely to pursue electric vehicles now.

 

http://www.eenews.net/public/climatewire/2009/07/01/1

post #11 of 17


 

Quote:
Originally Posted by Dana Nuccitelli View Post

Iceland has stepped back from hydrogen, and they're more likely to pursue electric vehicles now.

 

http://www.eenews.net/public/climatewire/2009/07/01/1

 

Hmmm, The Icelandic hydrogen generation was 100% electrically produced (via electrolysis) using electricity mostly from geo-thermal. Liquid hydrogen is a very nice way to store energy, no toxic & limited-life batteries, like today's EVs. I'm thinking that perhaps market-forces are pushing the Icelanders to EVs & away from more environmentally friendly liquid hydrogen. As EV prices come down, they fall below the cost of a hydrogen-converted internal

combustion

 

EVs seem like only a stop-gap measure in the world gaining freedom from oil. Given the long-term problems with batteries. (pronounced : TOXIC waste)

 

I bet that if GM threw it's considerable R&D behind large-scale production of efficient hydrogen motors, we would soon forget about EVs. But I suspect the oil-companies aren't too keen on that. The same oil-companies that supported the US government bail-out of GM.

 

The problem with hydrogen is that it is so abundant that it cannot ever be a limited commodity. Power is the ability to control a limited commodity.

post #12 of 17

Thanks for the resources on this! I completely agree with you mountain. It definitely seems like the world has turned off to hydrogen lately, you haven't heard anything about it on the news or even in blogs. What happened to hydrogen? In Iceland's case I think hydrogen is the best solution there, considering how they produce it, I understand that EV would still be powered by their geothermally generated electricity but the battery production and the battery itself and the long term effects make hydrogen a better solution in my mind. Seems at this point the biggest hindrance to hydrogen is the cost, which seems to be the case in Iceland.

post #13 of 17

 

The theory and design of home geothermal energy systems is sound. The problem is with the human infrastructure.
 
Here is Colorado, I installed a geothermal heat and hot water assist system. The design was sound, but the designer I hired (with good references) subcontracted installation work to an inexperienced, incompetent plumber. Numerous errors led to a non-functioning, expensive, problematic system. 
 
The one-person design company I originally hired kept bringing back the incompetent plumber to try to fix his own screw-ups, because the designer could get him to return cheaply. 
 
The problems continued until I went to a more reliable, albeit expensive, heating contractor with geo experience. At this point the designer bailed on standing behind his system or covering the repair costs. The problems are slowly being fixed and we've enjoyed good, inexpensive geothermal heat throughout most of this winter, although I've given up on the de-superheater hot water part. That part of the system keeps breaking down or shorting out, and the manufacturer refuses to deal directly with residential customers.
 
My advice is to wait awhile until the industry shakes out a bit more. There will be spotty manufacturer customer service unreliable start-ups that go in and out of the residential geothermal business who won't stand behind their work for the long haul.
 
post #14 of 17

 

I installed a ground source heat pump in my home near Baltimore, MD.  I am not an expert on the subject, but can speak of my own experiences with the technology.  I made the switch over from natural gas a couple of years ago after hearing that ground source heat pumps are one of the greenest and least expensive ways to heat and cool a space.  If you're deciding whether this technology makes sense for you, one of your first considerations is the difference in the expected remaining service life between your current heating unit and your cooling unit.  If you have, say, a 20-year old furnace for heating, and a separate outdoor A/C unit that is brand new, then know that you would be throwing away that brand new A/C unit since the ground source heat pump is used for both heating and cooling.  In my case, both my furnace and A/C units were old, so for me this was not a concern.
 
As you probably know, the system consists mainly of an indoor unit housing a blower and a compressor, and a ground loop buried in the yard.  There is usually the option of adding a desuperheater, which is essentially a device that heats your water using the excess heat from the heat pump, giving you free hot water in the summer.  In my case, the installer decided to install an additional hot water tank for this purpose, allowing me to keep my existing almost new water heater and leaving me with two water tanks and little chance that I would run out of hot water if my wife and I decided to take separate simultaneous showers.  Also, with ground source heat pumps, there is no outdoor unit, one of the benefits of which is a quiet backyard--good for summer gatherings on the deck or patio.  The indoor unit was roughly the same size as my old gas furnace, which allowed for an in place swap out.  It also happened to be in the most convenient possible location, just inside the front wall of the house, allowing easy access to the ground loop buried in the front yard.
 
Inside, when the unit is running, you CAN hear it, which was probably my biggest surprise and disappointment with my new heat pump.  It comes mainly from the whooshing sound of the air being pushed through the ducts.  There ARE measures one can take to mitigate this.  A properly installed dual stage heat pump will run on a low fan speed much of the time, which translates to quieter operation.  A dual stage model also happens to be more efficient and comfortable, helping to ease temperature variations between rooms.  In retrospect, I should have spent the extra couple thousand dollars for dual stage.  There are also duct mods you can make.  Perhaps the most cost effective is insulating the first 4 feet of duct on both the supply and return side, or replacing it with flex duct.  It is best to take care of this while the installers are in there anyway replacing the unit.  Also, you will want to ask your installer if your existing ducts, if you have them, are sized properly.  Apparently, if you have narrow ducts, that can strain the system.  I was told that my ducts did not have this problem.  If you do have to replace your ducts, go with insulated ducts to further reduce the noise and improve efficiency.
 
On to the ground loop.  The ground loop can be installed horizontally or vertically.  When possible, horizontal is usually preferred as it costs about half as much to excavate.  My installer went with vertical since I have a modest yard size with many trees and other landscaping obstacles.
 
I went with a company called Dynatemp on a recommendation from a colleague.  They performed the unit installation and contracted the ground loop excavation to another company called Easterday.  The drillers installed a vertical loop for a 4 ton system, 30 feet from the house, and 600 feet deep, at a cost of $14000.  They installed a Climatemaster Tranquility 20 for the indoor unit at a cost of $14000, making the total cost of the project--before tax breaks--about $28000.  To be sure, that is a hefty price tag, but with tax breaks at the federal, state, and local level, I received almost half of that back, making the grand total for me somewhere in the range of $15000.  I do not know what kind of credits are running nowadays, and there are some restrictions, so it pays to do your homework before you sign up to ensure that the unit you are installing will be eligible for all the tax credits you expect to get.  Also, after the installation is complete, there is some paperwork to file, so be sure to follow the instructions closely and save all your receipts.  Finally, with any new technology like this where a handful of companies hold a monopoly, there is always the possibility of price gouging.  For a big investment like this, I would get 2 or 3 estimates even if you think you're getting a good deal.
 
The unit for me has been maintenance free.  The only routine maintenance I do is to replace the air filter twice a year.  The filter is a non-standard size and probably won't be carried by the big box hardware stores, but I've had no difficulty finding it online at a reasonable price.  The indoor unit is expected to last 20 years and the ground loop should outlive you and me.
 
I estimate the system has probably cut down my utility bill by about half.  I have been hard pressed to come up with an exact figure as I still have an old electric wall unit in the addition behind my house.  I was offered the option of replacing the wall unit with a new model that tied into the ground loop at an additional cost of $6000.  Knowing that I could defer this until later and that I still had some years left in my old electric unit, I opted out.  Currently, my summer utility bill is around $100 and in the winter it averages around $300/month due to my constantly running the electric unit in the addition.  Though I haven't tried it, I suspect that if I turned off the heat in the addition my winter bill would be closer to $200/month.  Again, the supposed payback period is highly variable and depends on many factors, so it is difficult to come up with an estimate.  For a single family home it can range from a couple of years all the way up to a dozen or more years.  It tends to be longer if you currently have natural gas heating and shorter if you have all electric heating.  Also, while you're evaluating heat pump models, don't skimp on the thermostat.  A higher end thermostat will allow you to fine tune more of the settings that will increase your comfort and decrease your energy usage.
 
In summary, I have been happy with my ground source heat pump, minus the high initial cost and the somewhat noisy operation.  As mentioned, there are ways to mitigate the noise.  The other less talked about benefit is that my home is more comfortable year round.  Because the system is designed to put out air that is closer to the ambient temperature, the blower tends to run longer in each cycle, providing more even heat throughout the house and minimzing air pockets that cause drafts in one part of the house.  I wholeheartedly recommend ground source heat pumps for anybody who is due for a replacement of both their heating and cooling units, especially if their heating unit is electric.  In any case, take the first step and get an installer to come out and assess your property for geothermal suitability.  For those with gas heat who do not make good geothermal candidates, know that the latest gas furnaces are quite efficient also.
 
post #15 of 17

spamme00  -  very fine review!

 

what seems perplexing in 2012 is that drilling costs are still high,  heat pump units are perhaps better priced due to the economy, oil is down 30% from 2008, and natural gas is way down and expected to stay low for a long time.

 

Shale fracking, horizontal drilling and more arctic natural gas reserves  means nat gas will be stable and low for a long time.

 

However, in the north here, the natural gas is delivered by a monopoly.  The cuft. unit cost stays at market value(?)  Pile on Delivery Fee, plus a Transportation Fee ( a new way of charging delivery twice), an astronomical fixed Customer Charge (tripled over the past 8 years to make up for low market costs of gas these days) and all of this taxed, my worst case month long winter bill for a high end Veissman Boiler for heat and hot water goes from  $17.63 of actual natural gas to a Total bill of $130.22  with all these gouging fees added on top.  i am powerless to stop this for the past 10 years.

 

I regret getting natural gas but  my space is too small to even fit the driller for geothermal.

electricity here is going up gradually but still cheap by comparison - and electricity also has $40 minimum account charge per month.

 

Given the trend for long term cheap natural gas, will natural gas make more sense even though there are yearly service maintenance required?  My boiler is 8 years old and expected to last from 30 to 55 years.  It is a high end German model.

 

I have read too many horror stories of bad geothermal installations or system design ( under or oversized), gouging on pricing, and the payback period taking decades instead of the 7 years I was first told about.  requiring a gas back up heater for the cold climate would make the whole exercise mute.

 

post #16 of 17

THis is a great thread - I would just echo that absolutely the major barrier to the wider use of ground source heat pumps is the lack of qualified and expert installers as well as those who need to work with them to get the job done (e.g. plumbers).  These and most types of renewable home energy system rely on word of mouth in many areas to get a groundswell of popularity, and when something goes wrong it can turn off many people quite quickly.  Done correctly, I think geothermal could be a major force - but as grvillage says quite well, the infrastructure is not there. 

post #17 of 17

My home building company specializes in high performance/green building. We have used ground source geothermal systems in the past, but I no longer recommend them for the following reasons.

 

1. The initial cost is VERY high compared with other options.

2. Here in Northwest Connecticut we pay a lot for our electricity (about 20 cents/ kilowatt).This makes the payback period much longer than in other parts of the country where electric power is cheaper.

3.Geothermal heat pumps do not create their own energy, but simply use grid supplied electrical power to move energy into or out of the earth. This requires a LOT of electricity  ( which is typically generated by coal, other fossil fuels and nuclear)

4. Geothermal systems frequently use electric resistance heat as the back up heating source. In our area this is the most expensive way to heat. It is very inefficient (as measured by looking at the amount of energy in the original fossil fuel burned at the power plant vs. the amount of heat generated by the electric resistance back up heat). This means on the coldest days these systems are the most expensive to operate and have a the biggest carbon footprint.

5. Geothermal systems are very complex. Parts are not stock items at supply houses. If a geothermal system fails it can easily take a week to diagnose the problem, and get the appropriate repair parts. This leaves the house without a heating(or cooling) system for an extended period.

6. I prefer horizontal loop geothermal systems because they can be less expensive than drilling multiple wells 250 feet into the ground for heat exchange. However many home sites do not have the type of soil conditions/space to install horizontal loop systems at a reasonable cost.

7. I recommend no air conditioning if possible. Proper design can often make it unnecessary. If air conditioning is can't be avoided there are air source heat pumps that are nearly as energy efficient as geothermal. These systems are far less complex,and much less expensive.

8. If air conditioning can be avoided I would recommend that solar thermal be the first "alternative energy source" to be considered.

9.Before any "alternative" energy source is considered the primary focus should be on making the building shell as energy efficient as possible. With a high performance building envelope very little energy is required to heat or cool the building  (or in some cases no energy at all). Alternative energy sources can then be used to produce the small amount of energy required by such a building.

10. NET ZERO energy should be the goal for all new buildings today.

11. Geothermal can be viable in very limited situations. First there should be an inexpensive/green source for electrical power. A large flat lot with sandy soil makes horizontal loop systems less expensive to install. Access to a privately owned body of water (pond) can make geothermal an even more appealing option because energy can be pumped into and out of the pond rather than directly into the earth. The pond options is rare, but is an ideal match to geothermal.

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