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Residential
Applications
 Geothermal heat pumps are becoming a
more popular choice for residential heating and
cooling applications.
By utilizing the efficiency of geothermal technology, residential applications can
save tremendously on utility bills by converting or designing with
ground-source or geothermal heat pumps. The technology means no unsightly
noisy outdoor unit, greater cost savings than any other source of heating
and more reliable and comfortable operation cost.
Geothermal
Energy $avings
According to the
Energy Information Administration (www.eia.doe.gov), between January 2003
and January 2006, the average price of natural gas rose from a meager
$0.83 / Thm to an astounding $1.40 / Thm. Average U.S. Propane
prices soared to record highs in 2006 to over $2.60 / gal, and Fuel Oil
reached highs of over $2.50 / gal. What does all of this mean? Your
heating and water heating bill grew just as quickly as the prices at the
pumps, meaning you are paying more and more each month to heat your
home. With geothermal technology, we free you from the always
fluctuating fuel prices by relying on a more constant source of heat, the
earth.
The figure to the right illustrates a case study of heating and cooling
costs for similar homes with alternate sources of heating, cooling and
water heating. The geothermal heat pump save tremendously as compared to
even the highest efficiency gas or propane systems.
In August of 2005, the President
signed an Energy Bill granting homeowners incentives to build green.
According to this bill, owners of eligible ground source heat pump systems will receive
up to $300 in tax credits for installing a geothermal heat pump.
Eligible units must meet the following criteria: 14.1 EER & 3.3 COP
for closed loop, 16.2 EER & 3.6 COP for open loop and the system must
have a hot water "assist" (Desuperheater or On Demand
Technology). Most HydroHeat geothermal heat pumps meet these stringent
criteria.
According
to the Energy Information Administration (reference
link here) of the average home's utilities (heating, cooling, water
heating, appliances, etc.) 59% is attributed to heating (39%), cooling
(8%) and water heating (12%). With a HydroHeat
geothermal heat pump system, you can save on all of these
expenditures. Other geothermal heat pump manufacturers typically
cannot cover the entire water heating usage with the heat pump as they
will require gas or electricity to assist the heat pump in water heating
mode. Read more about water heating below in the "Geothermal Water
Heating" section.
What is the typical payback on a
geothermal heat pump?
Although geothermal heat pumps may have a higher cost of installation,
payback can be instantaneous when a home equity loan or construction loan
is involved. If your existing system needs to be replaced, or if you are
building a new home, a geothermal heat pump may offer you instant payback
as well.
Below (table 1) is an typical amortization
table. It helps calculate the monthly payment you can expect. To
borrow $1,000 over 30 years at 5.75% will require approximately a $5.8357
payment per month to the lender. To borrow $8,000 (8 x $1,000) over 30
years at 5.75% will require approximately a $46.70 payment per month to
the lender.
For a geothermal heat pump, the savings can
exceed the cost of borrowing even when compared to the highest efficiency
alternate system. Below (table 2.), we have compared the typical Propane
Heating & Water Heating system with High Efficiency Cooling to a Mega-Tek
TS Geothermal system with On-Demand Water Heating technology. Electric was
assumed at $0.08/kWh and Propane at $1.50 per gallon - this home was
located in the St. Louis, MO area.
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Table 2. Geothermal
Payback w/ Loan |
High Efficiency Geothermal System
Installation |
Alternate High Efficiency Propane System
Installation |
| A |
Installation Cost: |
$18,000 |
$8,000 |
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B |
Monthly Payment (on equity or construction loan @ $18,000, 30years,
5.75%): |
- $105.04 per month |
- $46.68 per month |
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C |
Estimated Yearly Cost of Operation: |
$949.42 per year |
$2,625.00 per year |
|
D |
Estimated Monthly Cost of Operation (Heating, Water
Heating & Cooling): |
$79.16 per month |
$218.75 per month |
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E |
Geothermal Monthly Savings (Heating, Cooling, Water
Heating vs. Alternate System): |
$139.63 per month
|
N/A |
|
F |
Geothermal Income (Savings - loan Payment): |
$34.59 per month |
N/A |
Table 2. can be summarized as follows:
while the installation cost (A) may is higher for the
geothermal system, the cost is not 100% upfront. Rather, the cost is
periodic (monthly) to the lender in the amount of $105.04 per month
(B). In this example, the estimated yearly costs of
operation for the geothermal and propane system (Heating, Water Heating
and Cooling) are estimated at $949.42 and $2,625.00 respectively (C).
At these estimated yearly operating costs, the monthly cost of operation
would be $79.16 and $218.75 per month respectively for the geothermal
system vs. the alternate Propane system (D). The
monthly geothermal savings is therefore $218.75 - $79.16 = $139.63 per
month (E).
Conclusion:
If you are paying $105.04 monthly to the
lender, but receiving $139.63 per month in savings, you have
already achieved instant payback . . . you are actually generating
$139.63 - $105.04 = $34.59 per month as income.
The
example in Table 2. illustrates an amazing, yet common tendency with
geothermal heat pump systems. Whether the competitive source is
Propane, Natural Gas, Electric (even air-source heat pump) or Fuel Oil,
geothermal heat pumps can typically have instant payback.
Geothermal
Water Heating
According to the
Energy Information Administration (www.eia.doe.gov), 12% of the average
mid-west households total utility expenditures (heating, air conditioning,
water heating, lights and appliances, etc.) can be attributed to water heating alone. The
HydroHeat product line offers unique "On Demand" technology that
allows you to generate hot water and space heat and cool your house out of
one appliance. Alternate brands may claim that they can do the same,
but our patented technology can heat hot water even when the heat pump is
not running to heat or cool your home, while others can't. This
technology will qualify you for the 2005 Energy Bill Tax Credit (see
above) and save you more than any Desuperheater option, guaranteed.
Geothermal
Comfort
Geothermal heat
pumps can offer increased comfort to your home. These appliances do not
require any additional fuel source to heat your home / hot water.
This means no: Carbon Monoxide potential, no allergies from combustibles
and no outside air required for combustion. Geothermal heat pumps
also circulate the air in the home more evenly, so temperature variance is
less than conventional equipment. Compared to air-source heat pumps,
geothermal heat pumps do not lose their ability to heat as the outdoor
temperature drops. This results in greater comfort and piece of
mind.
Geothermal
Advantages
(1) Hydro Delta Corporation is a pioneer - we hold several
exclusive geothermal patents and have the most advanced diagnostics
available. We sell to qualified heat pump installing dealers nationwide and provide them
with the tools to properly size, design, install and service your heat
pump.
(2) Profit
-
ground-source heat pumps save you more money and will pay themselves off
quicker than any other technology. New home financing can yield
payback in 30 days with current fuel costs !
(3) Tax Credits & Rebates - local and federal $$ make
your installation cost less and less, which increases payback
(4) Ease of serviceability
-
all acess panels are removable, unlike other heat pumps; this makes service and
installation easier. Heat pumps are typically located indoors for more
convenient acess as well.
(5) Patented Technology - patented On Demand Water Heating
means greater savings and shorter payback
(6) Green Machine - the system is charged with refrigerant
at the factory, which means less margin of error for installation and no
refrigerant pollution
(7) No Outside Unit - all equipment is installed inside,
this means less outside noise, and longer lifespan - custom noise
insulation ensures quiet operation of your geothermal heat pump
(8) Renewable Energy -
use the constant energy source of the
earth to heat and cool for much less money than alternate fuels
(9) Even Temperatures - lower output temperature and longer
run times mean more even heating and cooling throughout the home
(10) No combustibles
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no open flames or CO generation in your home
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