Cost and Savings with Geothermal Heating and Air Conditioning
Cost and savings in operation cost varies widely based on
- Geographical location
- Size of building to be heated and cooled
- Conditions of the building such as layout, windows, insulation
- available geothermal heat exchange and the selection
of a vertical, horizontal or lake loop - current and future energy cost and more
On the Water Furnace website one can read: "Energy and cost savings of geothermal heat pumps will vary by region and type of conventional system they're compared with. But the energy cost of geothermal versus conventional HVAC systems will always be lower — and the geothermal system will always be greener."
Example Cost / Savings Estimate:
For the purpose of this introduction we picked a typical example:
Location: Greenville SC Area
House: 2100 sqft, ranch style, contractor build 1993/94
HVAC: Split HVAC sytem, gas/electric, >16 years in service
Requires replacement:
3.5 ton Geothermal System
or 3.5 ton Conventional HVAC System
1. Cost / Investment:
- 3.5 ton conventional Heating and Air Conditioning: System: around $10000
- 3.5 ton Geothermal System with horizontal loop field: around $17000 - 30% Tax Credit -> $12000
- 3.5 ton Geothermal System with vertical drilled loop field: about $21300 - 30% Tax Credit -> $15000
2. Savings / Amorization:
- Geo System with horizontal field versus Conventional HVAC System: annual savings ~ $500, amortization in ~ 4 years
- Geo System with vertical loop versus Conventional HVAC System: annual savings of ~ $500. amortization in ~10 years
4 Summary::
- Geothermal systems require higher initial investment
- Geothermal system save in operational cost and pay for themselves in 5 to >10 years
- Available Tax Credits shortens the amortization period dramatically!
Talk to us about a geothermal heating and air conditioning for an unbiased project evaluation