Cost of Geothermal Systems

You are here

Natural energy from the earth looks very costly compared to traditional types of heating, but there are not enough facts to support this argument. A typical natural gas furnace with central air-conditioning costs about the same as the heat pump, although gas lines and chimney costs should be accounted for. The main installation cost difference comes from the loop in the group, well water transfer unit, excavation and drilling. These are variable costs depending on climate, demand for heating and cooling and the type of loop technology used for heat extraction. You will need a bigger ground loop if you have larger heating and cooling demands.

The type of soil affects the ground loop installation; moist but dense soil conducts heat better than dry, sandy soil. Lower quality soil will need a bigger ground loop. There is software currently available to calculate requirements for the loop and the type of soil. You should also thoroughly understand local soil conditions.

Not including installation, the operating and maintenance costs of a heat pump are much lower than for conventionally-fueled systems. Moreover, about two thirds of heat-pumped energy is free, which can lower your utility bills by at least 60%. The maintenance costs are reduced as there is no combustible fossil fuel and the system components are indoor-mounted which prevents vandalism as well as protecting against adverse weather conditions. Only simple air filter cleaning is required, if it is a forced-air system.

Natural Resources Canada research claims that properly-installed geothermal heat pumps can last for at least 50 years. The system’s capital or operating costs cannot be calculated accurately without calculating the home’s heat loss.

Unfortunately, most contractors and architects prefer the cheapest mechanical system for heating/cooling systems although it gives the lowest comfort level and higher operation costs. This choice usually stems from a lack of up-to-date knowledge about new, well-balanced systems. Since a geoexchange heat pump is very durable, you should consult a professional contractor.