The Project
Cost of Geothermal Heating and Cooling Installation
Simply put, the cost of geothermal heating and cooling installation is higher than a traditional systems There's the drilling, ground loop tubing, and then the whole heat pump system. Based on our research, and talking with people who have residential geothermal systems, we think it is worth the investment.
Initial Cost of Geothermal Heating and Cooling Installation
Expect to spend around $20,000 for a complete geothermal heating and cooling system. Yes, geothermal costs a lot of money, but it is cheaper than many new cars. Most estimates say it takes three to seven years to pay it off. I'm guessing it will be longer for us since we were using natural gas (cheaper than propane or heating oil) prior to the geothermal system so our savings aren't as dramatic as others might experience.
We've been told the ground loops are good to go for at least 50 years, and the heat pump itself is supposed to last longer than a conventional system. For one thing, the air conditioner is indoors, not exposed to the wear of the elements outside. The initial cost of geothermal heating and cooling installation seems more bearable when you factor in the longevity of a geothermal heating and cooling system.
One factor in our favor was a grant program from the State of Maryland, which offset some of the cost. The Maryland State Legislature has increased the grant amount to a maximum of $3K for residential geothermal installations (be sure to check since these things change over time - as of 2011 the max is 2K). Other states have incentives as well.
Long Term Benefits
The two big benefits are lower monthly bills and a longer lasting heating and cooling system. Your monthly bills go down and the system should last much longer. The system also will add to the resale value of the house, especially as geothermal systems become more popular.
At this time, we're still gathering data on the operation costs of geothermal heating and cooling. Geothermal cooling is by far the most efficient. We don't see much difference in our electricity usage whether we run the geothermal system or not. When running, the house is cool and comfortable with low humidity. Heating seems to be about 30% to 40% cheaper than our old system. Analyzing the costs of our geothermal heating and cooling installation is a bit difficult since we've made other energy saving changes to our house over the past several years. However, the 30% to 40% estimate is likely accurate.
Environmental Benefits
In our area, we are able to buy our electricity from renewable resources. The electricity we use comes from a variety of sources but when we pay our bill it is applied to renewable energy sources. In this respect we do not generate any carbon dioxide to heat and cool our home.
Because the system is efficient it uses less energy overall (estimates range from 30% to 70% less). This also results in lower costs and benefits the environment.