For every dollar you spend on heating, a geothermal system provides you with $4 in return, according to the Iowa Energy Center.
That makes geothermal the most energy-efficient heating and cooling available. According to building trades professionals attending the recent Momentum Is Building Conference, installing geothermal is number two in the list of the top energy efficiency improvements consumers can make. See the full list and additional information.
The concept behind a geothermal system is that it moves heat from the ground into your home for heating and removes heat from your home and discharges it into the ground. A bonus of most systems is that they also provide hot water for your home.
Learn the basics of geothermal from a
Co-op EnergyCast presented by an Iowa expert, Steve Anderson with the Iowa Geothermal Association.
Advantages of geothermal systems:
- They are environmentally friendly, almost no pollution potential, according to the U.S. Environmental Protection Agency (EPA).
- They are highly efficient, with efficiencies ranging from 300–600 percent on the coldest winter nights, according to the U.S. Department of Energy (DOE). They use 25–50 percent less energy than conventional HVAC systems. This translates into using one unit of electricity to move 3 units of heat from the earth, according to the DOE.
- They are a renewable resource, because the heating and air conditioning are provided by the earth.
- They offer low operating cost; homeowners may reduce heating and cooling costs by 80 percent and total home energy costs may be decreased by 5–8 percent.
- While the upfront cost is high (the International Ground Source Heat Pump Association says that geothermal units cost 50 percent more than a fossil-fuel based HVAC unit, the geo unit will be 50–70 percent more efficient and will require about half the cost of maintaining a fossil-fuel unit. After payback, homeowners can expect more than a 65 percent savings; as fossil fuel prices rise, so will the savings.
- Combustion isn’t part of the process, so they avoid pollution and pose no danger of carbon monoxide poisoning.
- They have a very long life expectancy (25 years for the inside components and 50+ years for the ground loop, according to the DOE).
- They are easy to operate.
- They incorporate very low-cost water heating as a byproduct.
- They improve humidity control, keeping relative indoor humidity at about 50 percent.
- They can be installed in either new construction or retrofits and allow for zone space conditioning, so that different parts of your home can be heated or cooled to different temperatures.
- There are no outside condensing units, so they are extremely quiet.
Cost
While geothermal costs about double what a conventional system costs (due to the outdoor loop system), upfront costs are recouped quickly, often within 3–5 years. And the external loop is often warrantied for 50 years. Tax credits help lower the cost, too. Running through 2016, all ENERGY STAR geothermal heat pumps offer tax credits of 30 percent of the system cost, with no upper limit. The credits are available for both existing homes and new construction and include the cost of installation, piping, and wiring.
Find details.
For more information
- Check with your electric cooperative for more information and assistance in calculating your payback on installation of a new system.
- Learn the lingo by reading our HVAC terminology article.