Case example:
1. Provide 100% of heat and air conditioning to 1920 square feet of space in a residential home in Massachusetts.
2. Provide roughly 50% of the homes domestic hot water
Upfront cost $ 28,500.
minus $ 8,550. federal tax credit
minus $ 1,000. Mass state tax credit
final cost $ 18,950.
In this same home, to install a traditional heating & a/c system would have been roughly $ 14,000. The difference therefore is $ 4,950
The cost to operate the two $ 583.10 for the geothermal system and $ 1,488.86 for the oil system.
With a savings of $ 905.00 per year, plus a savings of about $ 168 on the heating of domestic hot water bringing the annual savings to $ 1,073. That represents a simple payback of about 4.6 years.
Case example:
1. Provide 100% of heat and air conditioning to 3340 square feet of space in a residential home in Massachusetts.
2. Provide rougly 50% of the homes domestic hot water.
Upfront cost $ 39,000.
minus $ 11,700 federal tax credit
minus $ 1,000 Mass state tax credit
final cost $ 26,300
In this same home, to install a traditional heating & a/c system would have been roughly $ 17,000. The difference therefore is $ 9,300.
The cost to operate the two $ 1,731.77 for the geothermal system and $3,232.04 for fuel oil.
That represents a savings of $1,500.04 per year plus a savings of about $200 per year heating domestic hot water for a total savings of $ 1700. per year. That represents a simple payback term of 5.5 years.
These numbers are based on $ .16/kWh for electricity and $ 2.75/gal for oil.
The cost savings realized can be even higher when you factor the reduced cost of service calls.
Let's also keep in mind that the cost of electricity is traditionally more stable than the cost of other fuels.
- Heating oil March '07 $ 2.39 per gallon
- Heating oil March '08 $ 3.79 per gallon
What if we did a high-brid system? Let's develop a Solar PV system to provide the electricity required to operate the Geo system and eliminate the $ 1,731 cost per year. In this example, once the system is paid for, you have no future cost for heat & a/c...$ 0.00
Does your traditional system have a payback ? No, it does not. You pay for it and then you pay for the cost to operate it. No payback.
