Friday, January 31, 2014

Geothermal Explained

Heating and cooling expenses are the largest part of most homeowners' budgets.  High-efficiency methods such as solar roof tiles and tankless water heaters will continue to become more commonplace, and buyers who get familiar with the newest technologies will be able to select the best performing systems and homes.

One technology that is spreading is geothermal heating and cooling.  In most parts of the world, the top 10 feet of the Earth's surface maintains a constant temperature between 50° and 60° F.  A geothermal system circulates water through a continuous loop of pipes with wells buried below the frost line.  A heat exchanger extracts the thermal energy to heat or cool the home through conventional ducts.  In the summer, the heat removed from the indoor air can also be used to heat water for the home.  Industrial systems can access heat from deeper underground and power turbines to generate electricity.

Geothermal radiant heat floor being installed
While it's obviously easier to install geothermal in new construction, retrofits to existing heating systems can be done.  The easiest system to adapt is hydro-air - replace the boiler with a heat pump and the rest of the system just needs minor adjustments.  Electric baseboard heat is more difficult, especially if there is no central air conditioning.  In this case, new ductwork will also have to be installed throughout the home.  Installing the underground pipes is not difficult, and while your grass will need some time to recover, the system will not interfere with trees or any other plants.

The US Department of Energy estimates that about 50,000 geothermal systems are installed in the US each year, and most of those are in the western states, Alaska and Hawaii.  The average savings over a conventional air conditioning system result in a return on investment in about 5 years.  For more information on geothermal technology, visit the National Renewable Energy Laboratory website.

I found a ball park savings calculator here, and after digging out some old utility bills I went through the couple dozen questions about my home and yearly energy usage.  While it's only an estimate, it seems that it would take about 30 years for me to recoup my investment.  Keep in mind, though, that I have a small home and we've worked to keep our energy consumption down.  It's also cooled by evaporative cooling, and there isn't a field to enter that factor, so I don't know how much of an effect that would have.  There is a 30% federal tax credit for installing one of these systems, however, which may not be around forever, so it might be worthwhile for you to take a few minutes with the calculator to see if geothermal would benefit your home.

image: VIUDeepBay


I would love to help you with your real estate journey. 
Please contact me at 303-917-7143 or robbin@stauferteam.com

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