Geothermal Cost

Geothermal Cost

When discussing geothermal heating systems, most of the focus is usually on how energy efficient they are, their widespread availability, or the amount of money you'll save on heating bills. This causes a lot of sticker shock when prices are finally quoted. However, it is true that the costs of geothermal heating systems are offset by savings and lower emissions.
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How Much Does a Geothermal System Cost?

Geothermal Heat Pump Cost

Geothermal heating pumps are usually priced by ton of capacity. Heating capacity is the amount of energy used to heat one gram of water 1°C. This may seem like an abstract concept; however it provides a standard to which you can compare your needs to available systems. An average home needs three tons of heating capacity, and the average cost of a geothermal system is $2,500 per ton of capacity. This makes the final cost of the geothermal heat pump $7,500.

Price of Geothermal Drilling

Geothermal heating systems also need wells or trenches dug for their piping. The pipes for the loops can cost $1000-$2000, and then there is the cost of drilling. Drilling costs depend on the type of geothermal heating system you have, and the soil where you live. If you live in a rocky area expect to spend more on the drilling operation. Geothermal costs also depend on the type of system you are using—closed or open loops.

Open and Closed Loop Costs

Closed loops can be laid horizontally four to six feet underground, and as the average home needs three or four loops of pipe, they can be overlapped in a "Slinky" system. Pipes can also be laid vertically in 100-400 foot bore holes.

Open loop systems run pipe to an underground water source and through the heat pump, then return the water to its original source or into another well. This uses less piping, but an equal amount of drilling. Depending on your geothermal loop system and location drilling can cost upward of ten thousand dollars.

Geothermal Cost Comparison

Heat pump systems, complete with air conditioning, average about $4000, not including the cost of installation. Geothermal heat pumps usually cost about $7000 to buy and install. However, the savings on reduced heating bills come to $400-$1400 per year, which alone would pay off the cost of a geothermal heating system in about five years.

Reduce the Installation Cost of Geothermal Systems

It is also possible to add the cost of the heat pump installation to your mortgage. Dividing the geothermal heat pump cost by the 30+ years of your mortgage often results in only $30 extra on your mortgage payment per month.

For further cost reduction, new tax rebates are available that repay 30%, up to $2000, on newly installed geothermal equipment. Visit www.energystar.gov for more information. Additional savings can come from deals with local electric companies. Some electric companies offer special rates to customers with geothermal heating systems, as the reduced usage allows the electric companies to sell more of their electricity to others. Other electric companies pay for geothermal system installation, and the customers pay to lease the system, which is still cheaper than electrical usage.

Disclaimer: This article offers general guidelines and is not intended as professional advice.