Residential Applications

  Geothermal heat pumps are becoming a more popular choice for residential heating and cooling applications.  By utilizing the efficiency of geothermal technology, residential applications can save tremendously on utility bills by converting or designing with ground-source or geothermal heat pumps. The technology means no unsightly noisy outdoor unit, greater cost savings than any other source of heating and more reliable and comfortable operation cost.


  Geothermal Energy $avings
  According to the Energy Information Administration (www.eia.doe.gov), between January 2003 and January 2006, the average price of natural gas rose from a meager $0.83 / Thm to an astounding $1.40 / Thm.  Average U.S. Propane prices soared to record highs in 2006 to over $2.60 / gal, and Fuel Oil reached highs of over $2.50 / gal.  What does all of this mean? Your heating and water heating bill grew just as quickly as the prices at the pumps, meaning you are paying more and more each month to heat your home.  With geothermal technology, we free you from the always fluctuating fuel prices by relying on a more constant source of heat, the earth.

  The figure to the right illustrates a case study of heating and cooling costs for similar homes with alternate sources of heating, cooling and water heating. The geothermal heat pump save tremendously as compared to even the highest efficiency gas or propane systems.

  In August of 2005, the President signed an Energy Bill granting homeowners incentives to build green.  According to this bill, owners of eligible ground source heat pump systems will receive up to $300 in tax credits for installing a geothermal heat pump.  Eligible units must meet the following criteria: 14.1 EER & 3.3 COP for closed loop, 16.2 EER & 3.6 COP for open loop and the system must have a hot water "assist" (Desuperheater or On Demand Technology). Most HydroHeat geothermal heat pumps meet these stringent criteria.

According to the Energy Information Administration (reference link here) of the average home's utilities (heating, cooling, water heating, appliances, etc.) 59% is attributed to heating (39%), cooling (8%) and water heating (12%).  With a HydroHeat geothermal heat pump system, you can save on all of these expenditures.  Other geothermal heat pump manufacturers typically cannot cover the entire water heating usage with the heat pump as they will require gas or electricity to assist the heat pump in water heating mode.  Read more about water heating below in the "Geothermal Water Heating" section.

What is the typical payback on a geothermal heat pump?
Although geothermal heat pumps may have a higher cost of installation, payback can be instantaneous when a home equity loan or construction loan is involved. If your existing system needs to be replaced, or if you are building a new home, a geothermal heat pump may offer you instant payback as well.

Below (table 1) is an typical amortization table. It helps calculate the monthly payment you can expect.  To borrow $1,000 over 30 years at 5.75% will require approximately a $5.8357 payment per month to the lender. To borrow $8,000 (8 x $1,000) over 30 years at 5.75% will require approximately a $46.70 payment per month to the lender.

For a geothermal heat pump, the savings can exceed the cost of borrowing even when compared to the highest efficiency alternate system. Below (table 2.), we have compared the typical Propane Heating & Water Heating system with High Efficiency Cooling to a Mega-Tek TS Geothermal system with On-Demand Water Heating technology. Electric was assumed at $0.08/kWh and Propane at $1.50 per gallon - this home was located in the St. Louis, MO area.

 

Table 2. Geothermal Payback w/ Loan

High Efficiency Geothermal System Installation Alternate High Efficiency Propane System Installation
A Installation Cost: $18,000 $8,000
B Monthly Payment (on equity or construction loan @ $18,000, 30years, 5.75%): - $105.04 per month  - $46.68 per month
C Estimated Yearly Cost of Operation: $949.42 per year $2,625.00 per year
D Estimated Monthly Cost of Operation (Heating, Water Heating & Cooling): $79.16 per month $218.75 per month
E Geothermal Monthly Savings (Heating, Cooling, Water Heating vs. Alternate System): $139.63 per month N/A
F Geothermal Income (Savings - loan Payment): $34.59 per month N/A

Table 2. can be summarized as follows: while the installation cost (A) may is higher for the geothermal system, the cost is not 100% upfront.  Rather, the cost is periodic (monthly) to the lender in the amount of $105.04 per month (B).  In this example, the estimated yearly costs of operation for the geothermal and propane system (Heating, Water Heating and Cooling) are estimated at $949.42 and $2,625.00 respectively (C).  At these estimated yearly operating costs, the monthly cost of operation would be $79.16 and $218.75 per month respectively for the geothermal system vs. the alternate Propane system (D).  The monthly geothermal savings is therefore $218.75 - $79.16 = $139.63 per month (E). 

Conclusion: If you are paying $105.04 monthly to the lender, but receiving $139.63 per month in savings, you have already achieved instant payback . . . you are actually generating $139.63 - $105.04 = $34.59 per month as income.
 

The example in Table 2. illustrates an amazing, yet common tendency with geothermal heat pump systems.  Whether the competitive source is Propane, Natural Gas, Electric (even air-source heat pump) or Fuel Oil, geothermal heat pumps can typically have instant payback.


  Geothermal Water Heating
  According to the Energy Information Administration (www.eia.doe.gov), 12% of the average mid-west households total utility expenditures (heating, air conditioning, water heating, lights and appliances, etc.) can be attributed to water heating alone.  The HydroHeat product line offers unique "On Demand" technology that allows you to generate hot water and space heat and cool your house out of one appliance.  Alternate brands may claim that they can do the same, but our patented technology can heat hot water even when the heat pump is not running to heat or cool your home, while others can't.  This technology will qualify you for the 2005 Energy Bill Tax Credit (see above) and save you more than any Desuperheater option, guaranteed.


  Geothermal Comfort
  Geothermal heat pumps can offer increased comfort to your home. These appliances do not require any additional fuel source to heat your home / hot water.  This means no: Carbon Monoxide potential, no allergies from combustibles and no outside air required for combustion.  Geothermal heat pumps also circulate the air in the home more evenly, so temperature variance is less than conventional equipment. Compared to air-source heat pumps, geothermal heat pumps do not lose their ability to heat as the outdoor temperature drops.  This results in greater comfort and piece of mind.


  Geothermal Advantages
(1) Hydro Delta Corporation is a pioneer - we hold several exclusive geothermal patents and have the most advanced diagnostics available.  We sell to qualified heat pump installing dealers nationwide and provide them with the tools to properly size, design, install and service your heat pump.

(2) Profit - ground-source heat pumps save you more money and will pay themselves off quicker than any other technology.  New home financing can yield payback in 30 days with current fuel costs !
(3) Tax Credits & Rebates - local and federal $$ make your installation cost less and less, which increases payback
(4) Ease of serviceability - all acess panels are removable, unlike other heat pumps; this makes service and installation easier. Heat pumps are typically located indoors for more convenient acess as well.
(5) Patented Technology - patented On Demand Water Heating means greater savings and shorter payback

(6) Green Machine - the system is charged with refrigerant at the factory, which means less margin of error for installation and no refrigerant pollution
(7) No Outside Unit - all equipment is installed inside, this means less outside noise, and longer lifespan - custom noise insulation ensures quiet operation of your geothermal heat pump
(8) Renewable Energy - use the constant energy source of the earth to heat and cool for much less money than alternate fuels
(9) Even Temperatures - lower output temperature and longer run times mean more even heating and cooling throughout the home
(10) No combustibles - no open flames or CO generation in your home