Geo-Thermal Systems:

There is no question that moving from a conventional heat pump unit for heating and cooling your home, to a geothermal system, will save you thousands of dollars over the lifetime of the system.  A typical heat pump system installed in a home that is five years old or more, will likely be rated at 13 SEER.  A new Tranquility Geothermal system from Climatemaster will be rated at a minimum of 26 SEER.  This translates into a 50% reduction of that portion of your electric bill devoted to running the HVAC system.  Plus, most geothermal units an be adapted to generate hot water for domestic use.  In that case, you could add the savings from running your existing hot water system, to the savings geothermal returned on your HVAC bill. 

GEO system Pay Back Work Sheet

The data below illustrates how a geothermal system proposed for this clients home, will pay for itself in just over 6 years.

Scope of Work

Remove existing heat pump condensers, air handlers and gas fired furnace units.
Drill (8) vertical wells, trench and bury lines, plumb to manifolds and pump stations. 
Install (1) 5 ton and (1) 3 ton Climate Master Tranquility 27 geothermal units. Install (1) modulating propane gas furnace to the 5 ton unit and (1) 10 kw auxiliary heating unit to the 3 ton unit.  All misc. materials and labor to install to existing duct work.

Costs:

Total Cost of the project ………………………………….........$     44,620.00
Less 30% Federal tax Credit …….……………………………...$    13,386.00
New Subtotal ……………………………………………………..........$    31,234.00
Less Maryland State Energy Grant ………..................$      3,000.00
Net System Cost…………………………,,,,,,………………………..$    28,234.00

Breakdown of Energy Savings

Electrical Savings:

Current, average monthly electric bill ………….……………………..$ 600.00
Portion of the electric bill consumed by existing HVAC = 2/3’s

$ 600 x 66% = $ 396 /mon. (using existing 13 SEER equipment)

New Geothermal units operate at 27 SEER or twice as efficient as existing
Units.  So, replacing existing units with geo should cut operating cost by 50%

$ 396 x .50 = $ 198 / mon. electrical savings. X 12 = $ 2,376 savings / year

Propane Savings:

Current, average monthly propane bill ……….…………………..…..$ 220.00

Portion of the propane bill consumed by existing hot water heater = $ 30.00 (see calculations below)

Typical yearly BTU requirements of a single family water heater = 16.7 million
Average cost of 1 million BTU (propane) = $ 22  x 16.7 = $ 367 ÷ 12 = $ 30

$ 220 - $ 30 = $190 x 75% (portion of the remaining LP bill dedicated to running the furnace) = $142.50  (the remainder of the gas bill is assigned to the stove and fireplace) 

$ 142.50 could be saved monthly because the Geo system would provide 100% of the heat needed, 98% of the time.  The $30 portion of the hot water heaters consumption could saved completely as the Geo system will make hot water for the house as a by product of it’s operation. 

Summary:

$ 30 / mon water heater savings + $ 142 / mon.  gas heating savings = $ 172 / mon
$ 172 savings /mon x 12 = $ 2,064 savings/ year

$ 2,064 propane savings/ year + $ 2,376 electrical savings/ yr = $ 4,440 /yearly savings

Net Geo system cost $ 28,234 ÷ $ 4,440 yearly savings = 6.4 yrs to pay off.

It is also worth noting that the Federal Renewable Energy Credit (30% of the total cost of the system, no cap) is good for geothermal systems purchased through 2016.  It’s a great time to go GEO!