How much does a geothermal heating system cost?
The initial investment for a Geothermal Heat Pump system is greater than that of a
conventional system. As a rule of thumb, a geothermal heating and cooling system will costs twice as much as the
average air source system.
However, when you take into consideration the yearly operating costs of a geothermal heating and
cooling system, PLUS the FREE hot water it can provide during the summer, the energy savings can quickly offset the
initial costs difference.
The major expense in a geothermal system is in the loop system.
Image used with permission from Waterfurnace, Int.
Many homeowners that I speak with have been told that a geothermal system is too expensive and will
never pay for itself. They are usually told this by a sales person that sells a different type of
system. The TRUTH is that it's not always a cut and dry answer on whether a geothermal heating and cooling
system is right for you.
Since I don't know your exact situation, I use the rule of thumb that on a 2000 sq ft home, the
average payback period is around 8 years. Now if electric rates continue to increase, which they will, and if
they double, which they easily could, that payback now becomes 4 years.
So after 4 short years it's MAKING you money! There is nothing else in your home that can
give you that kind of return on your investment. An advantage of a geothermal heating and cooling system is
that your montly operating costs will be considerable lower than the conventional system.
If you are building a new home I suggest you visit my energy efficient home design site at
www.rye-homes.com. You can download my FREE design