Cost / Savings Questions
What is the cost of a geoexchange system?There are two costs involved: installed (or capital) cost, and operating costs.
There are too many site-specific variables to quote a first cost for any given geoexchange system, but estimates to install a complete system (including ground loop and heat pump) range from $18,000 to $30,000 for a typical home. This may be higher than the cost to install combustion furnaces but in all cases, the drastically lower annual operating costs for a geoexchange system that provides space heating, water heating and space cooling, will be much lower than the cost to operate any other furnace of any efficiency level. These much lower operating costs will allow the owner to pay off the unit relatively quickly - in some cases quicker than a traditional HVAC system - and then begin enjoying further savings for years to come.
What is the payback period? Payback is a method of calculating the time needed to recover any premium (or 'extra') cost for a geoexchange system over another heating and cooling system that is being considered. The process combines the cost to install and operate both systems over a period of time. For a residential geoexchange system, the simple payback averages from five to ten years depending on the addional costs required for the installation of a geoexchange system and the type of system installed.
What additional costs are expected with a geoexchange system? There may be an installation charge for electrical work or upgrades to the circuit breaker, addition or modifications to interior ductwork, water hook-up or lawn restoration costs. The contractor estimates these costs in advance. Servicing or maintenance contracts may be included in the purchase price or are an additional cost.