Cost of Geothermal Systems:

What is comfort and efficiency worth to you?

Discussion about the install costs of geothermal systems and if they are worth the investment.

First, lets look at the install costs.

Geothermal systems do not cost more to install initially from the point duct system requirements.

ALL HVAC systems [forced air] need to be designed to carry the amount of air required to operate efficiently and at maximum capacity. Generally, this is 400 CFM per ton of refrigeration capacity. A 3 ton air source system requires the same amount of air flow as a 3 ton geothermal system. Therefore, there is no difference in the initial install costs between the two.

Where the duct system cost vaires is the system design. A box and flex duct system is cheaper to install since the sheet metal used is reduced.

Sheet metal duct systems require more time to fabricate and install, therefore it simply costs more. A box and flex system, sized and installed correctly will perform correctly and efficiently. But it is not as durable as a sheet metal system.

Basically, it is a trade off. Sheet metal is more durable and will typically last forever, flexible duct typically does not. Sheet metal is easier to clean whereas flexible duct is easily damaged during cleaning. This is a basic senario and complex designs definitely affect install costs.

Where the geothermal system install costs come into play is the equipment costs and loop installation. Geothermal systems simply cost more to manufacturer.

The loop systems require more labor to install versus running copper lines to connect standard air source systems.  Loop systems, either high density poly [HDP] for water source systems or copper loops for DX systems require excavation or drilling.

This is another initial install cost. Typically, HDP requires more linear footage than copper loops since copper is 400% more conductive than plastic. So in theroy, less excavation or drilling is required to install DX systems. This however comes at a price...copper is expensive. So there is a balance there between the initall install costs of each system. Only the bidding contractors can determine what this will be.

Since more labor is required to install geothermal systems, this also affects the initial install cost. Labor rates vary nation wide, so don't expect labor to install a system in Georgia to be the same in California. This is simply a regional cost that varies from state to state. Drilling and excavation costs follow the same path.

A HVAC companies operating costs will vary also. Fuel costs vary from state to state or province to province. Insurance [vehicle, liability, health, workmans compensation] all vary. All these items affect the bottom like...consumer cost.

The HVAC industry has undergone drastic changes in recent years. Nearly every component used to install a HVAC system has experienced price increases. Code changes now require higher efficiency systems, greater insulation values on the duct systems and a host of other items that affect the bottom line. Refrigerant prices continue to rise. So does fuel costs, labor rates, operating costs, etc.

In sumary, don't expect to get the same install costs from one state or region to the next...it won't happen.

Now, is a geothermal system worth the additional cost? What is comfort and efficiency worth to you? I have never gotten an answer to that question. There are a number of things to consider.

Typically, a geothermal system will have a payback period of 5-7 years between the cost of installing a high efficiency air source system versus a geothermal system. If you are going to install a geothermal system and move from the home within that time frame, you probably will not experience any energy savings. Now consider that the national life expectancy of an air source system is 10-14 years before the system will have to be replaced. This is an important fact to consider. Geothermal systems typically have more than a 30-year life expectancy.

Lets say that a geothermal system costs $20K to install versus $10K for an air source system. Given current prices and inflation, replacement cost of the system could easily reach 75% if the initial installation costs. Therefore, the air source system would require an investment of $17,500 during the first 10-14 years of the systems life. Given this, you would have to save $2,500 in energy costs alone during the first 14-years of the systems life to equal the initial investment cost. Is this possible...its more than probable! That amounts to less than $15 per month! It is well known that geothermal systems are the most efficient operating systems on the market today.

Now consider the effects of installing a geothermal system. These facts can be found on the geoexchange website.

1. There are around 1,000,000 geoexchange systems installed in the US to date saving more than 21,000,000 barrels of crude oil each year!
2. Installing a geothermal system has the same effect on the environment in greenhouse gas emission reductions to equal planting an acre of trees!
3. Replacing an existing fossil fuel burning appliance further reduces Co2 emissions and reduces our dependancy on foreign crude increasing our national security.
4. Reduces the energy requirements on our power grids, which are already greatly over loaded as evident by rolling black outs.

These are just a few of the many benefits of geothermal systems. Now, do these systems make sence? 

What is geothermal energy all about?

A geothermal system is a heating and cooling unit designed to extract the natural heat stored in the ground during the winter and discharge heat from air conditioning to the relatively cool ground in the summer. A geothermal system can also heat water. The sun shining on the earth warms the ground to maintain a relatively constant temperature of about 52 degrees Fahrenheit year round in northeast Ohio at a depth of 4 to 6 feet.

Heat is extracted from the earth during the winter or heat is discharged to the earth during the summer air conditioning season by one of four types of installations.

    * Horizontal Loop Installation
      If a horizontal loop system were installed, it would involve the excavation of parallel trenches, each 5 feet deep and 3 feet wide and about 130 to 150 feet long. The minimum distance between each trench is about 15 feet. Each parallel trench can run in any direction; that is they don't have to be side by side. 600 feet of ¾ inch polyethylene pipe are placed in each trench resembling a slinky laid flat on the bottom of the 3-foot wide trench. All parallel trenches are connected to a 1-¼ inch supply and return header which enters the house through the basement to the geothermal flow center. Alternative horizontal loops use 2, 4, or 6 pipes per trench. A 2-pipe trench would be about 1 to 2 feet wide and about 400 feet long. As more pipes are added to the parallel loops the length of the trench is reduced.
    * Vertical Loop Installation
      The vertical loop would involve vertical boreholes 4 inches in diameter drilled about 150 feet each. Each borehole would be separated from the next by about 10 feet. Two ¾ inch polyethylene pipes are inserted into the 150-foot borehole. The pipes are connected at the bottom using a U-bend. The borehole is then filled with bentonite clay to bond the pipe to the earth and prevent surface water from entering ground water aquifers. The individual wells are joined to a 1-¼ inch header at a depth of 5 feet below grade. The supply and return header then enters the house through the basement wall.
    * Open Loop Well Water Installation
      Where ground water is abundant, a water well can also be used as the energy source/sink, reducing the installed cost by eliminating the closed loop. However, a return well or acceptable surface discharge is required. In addition, an open loop system will require periodic cleaning of the heat exchanger to remove mineral deposits. This is generally done annually.
    * Pond Loop Installation
      A pond loop system consists of 300 foot coils of ¾ inch polyethylene pipe circuited in parallel via 1 ¼ inch polyethylene header pipes. The header and coil assembly is mounted to a PVC frame which holds the coils at the proper spacing and depth allowing water to flow underneath and through the center of each coil. Concrete blocks are attached to the base of the PVC frame and the entire structure is floated to the desired location in the pond. Once in position the pond loop is flushed and filled from the basement through 1 ¼" polyethylene header pipes sinking the pond loop to the bottom of the pond.

 The geothermal unit within the home looks similar to any other conventional heating and cooling system.

Since heat removed from the home during the summer is discharged to the circulating loop solution, there is no outside condensing unit as required for other air conditioning systems.
A geothermal system is the most economical heating and cooling system available today. Because it uses free energy from the earth, its efficiency ratings are from 300% to 400%. Both the USEPA and US Department of Energy have endorsed geothermal systems as having the least environmental impact and the lowest energy consumption.
Geothermal energy systems result in a 40% to 80% operating cost reduction when compared with alternate heating and cooling systems. Geothermal systems cost more to install than other heating and cooling systems primarily because of the need to install the closed loop which is the energy source. When a geothermal system is installed in a new home the higher installation cost is more than offset by the lower operating cost so that the homeowner is left with more spendable money every month. In addition to the lower monthly operating costs, and lack of an outside condensing unit, there is no concern for carbon monoxide or fire. A geothermal unit provides a uniform comfortable temperature throughout the home.
Since 1980, Grace Geothermal. has been exclusively installing geothermal systems in Northeast Ohio. We are the leading geothermal company in Northeast Ohio having installed over 1000 systems, including all of the Lake County YMCA Dream Homes, since 1995.

Benefits of investing in a Geothermal Comfort System

    * Lower operating costs - Operates more efficiently than ordinary heating and air conditioning systems, saving up to 80% in most cases.
    * Safe and clean - No flame, no flue, no odors, and no danger of fire or carbon monoxide. High efficiency filters remove dust and pollen to improve indoor air quality
    * Quiet operation - A super efficient compressor and soft-start, variable-speed fan make the Premier line so quiet that many people find themselves checking to make sure the system is actually on.
    * Comfortable - Provides precise distribution of warmer air in winter. Gone are the uneven temperatures experienced with ordinary furnaces. In the summer you get central air conditioning with better dehumidification.
    * Flexible - Heating, central air conditioning and domestic hot water -- three systems: all from the same compact unit.
    * Environmentally Friendly - The system emits no carbon dioxide, carbon monoxide, or other greenhouse gasses which are considered to be major contributors to environmental air pollution.
    * Attractive - The completely self contained unit is maintained indoors. There is no need for noisy, unsightly, outside condensing equipment.
    * Reliable - Microprocessor controls and state-of-the-art components allow smooth operation and years of maintenance-free service.