Cost Saving Advantages
Because of their exceptional efficiency, geothermal systems are substantially less expensive to operate than tradition natural gas or electric resistance heating systems. The cost savings available from a geothermal system will depend on the heating and cooling requirements for your house or building, local climate and energy costs, and building use. Other heating costs can also be dramatically reduced. For example, heat removed from a house or building while air conditioning in the summer can be used to heat domestic hot water, swimming pools, hot tubs, or other parts of the building.
Geothermal systems typically cost 30% to 60% less to operate than traditional residential or commercial systems. The simple payback (the period of years before the savings in annual operating costs exceed the initial premium of an installation) ranges from 3 to 12 years, and in many cases installing a geothermal system can result in positive cash flow from the first month of operation. Many utility companies also offer grants and rebates for buildings using geothermal systems. There are also Provincial and Federal incentives available to make energy efficient upgrades to your existing home or building more affordable.
To provide a real example of the cost savings from a geothermal system, we have estimated the energy consumption for one of our recent residential installations. The yearly cost comparison below has been independently reviewed by a Registered Professional Engineer and determined to be a fair estimate based on current engineering standards. The total savings over 10 years are $25,244.00.
Operating Cost Example:
Energy consumption to heat and cool the home are based on annual averages and could vary with actual weather conditions experienced and the living habits of the occupants.
Commercial and institutional buildings can also achieve 30% to 60% savings on their operating costs with geothermal systems. However, the wide range of commercial applications and design options makes it difficult to generalize about energy savings in these buildings. We would be glad to discuss the details of your building or facility and provide you with more specific estimates of energy savings.
Commercial Cost Savings
Energy Savings Analysis:
- Third party detailed energy model performed for NRCAN CBIP grant
Energy saving initiatives:
- Comprehensive geothermal system with heat pumps in each suite.
- Domestic hot water using high efficiency geothermal heat pumps.
|Conventional System||Geothermal System|
Total Estimated Annual Energy Savings: $131,371
Estimated Green House Gas Reduction: 250 tons per year
Energy analysis completed by Enersys. Courtesy of Cressey Development
The study, published in the journal Natural Resource Research, assessed ground temperatures across Canada down to 250 meters to get a sense of the potential resource. The researchers found that the heat energy in the first 50 meters alone was roughly equivalent to the commercially recoverable energy in the oil sands. That’s a lot actually, suggesting that if Canadians wanted to invest in Geothermal technology it would be more profitable than the Alberta Oil Sands.
Annual energy savings for homeowners can be reduced from 30 to 70% in heating mode and 20 to 50% in the cooling mode compared to conventional systems.