Geothermal Systems

System Attributes, Costs and Incentives

Geothermal energy refers to energy obtained from the ground. Heat pump systems circulate water through the ground below the frost line to take advantage of the constant temperature zone. This becomes a heat source in winter and a heat sink in summer to warm and cool your home. Below is a diagram of a typical geothermal system.

System Attributes and Cost

For an average sized home of about 2000 sq. ft. cost can range anywhere from $25,000 to $40,000.

Why the range?

• Pond/Lake Loop: $25,000
• Horizontal Loop: $30,000
• Vertical Loop: $40,000

The ground loop type is a key factor impacting the initial capital cost of installing a system. Ground loop types include, horizontal loops, vertical loops and pond/lake loops.

• Pond/lake loops consist of networks of submerged pipes, and are very cost effective to install, as only a minimum of digging is required.
• Horizontal loops consist of a network of pipes buried below the frost line, approximately 6 feet in depth.
• Vertical loops are the most expensive because they require the use of specialized drillers and equipment; vertical loops are generally only utilized where sufficient space for a horizontal system is not available (ie: modern urban zones).

Incentives and Rebates

System Efficiency

The system productivity is referred to as the coefficient of performance, or COP, and is measured as a whole number or percentage. Consider the COP to be the ‘built-in’ incentive⁄rebate. The heat pump can extract and concentrate the energy from the ground very efficiently. This means that for the cost of pumping that energy out of the ground you receive more energy in return than you spend. The COP is of key importance when determining the overall efficiency of the system and thus the system's ability to return on investment. Many systems will operate in the 300% to 400% efficiency range, COP = 3.0 – 4.0, thus reducing your home's energy usage and associated environmental footprint by approximately 70%.

ecoENERGY Retrofit- Homes Grant

• $4375 from the Federal Government when you install an earth-energy system (ground or water source) that is compliant with CAN/CSA-C448 and certified by the Canadian GeoExchange Coalition (www.geo-exchange.ca) – applies to a new system or a complete replacement.
• $1750 when you replace a heat pump unit of an existing earth-energy system (ground or water source). The system must be compliant with CAN/CSA-C448and certified by the Canadian GeoExchange Coalition (www.geo-exchange.ca). (*per equipment replaced)
• Only homeowners who booked a pre-retrofit evaluation by March 31, 2010, can receive an ecoENERGY Retrofit – Homes grant.

Ontario Home Energy Savings Program Grant

• $4375 when you install an earth-energy system (ground or water source) that is compliant with CAN/CSA-C448 and certified by the Canadian GeoExchange Coalition (www.geo-exchange.ca) – applies to a new system or a complete replacement.
• $1750 when you replace a heat pump unit of an existing earth-energy system (ground or water source). The system must be compliant with CAN/CSA-C448 and certified by the Canadian GeoExchange Coalition (www.geo-exchange.ca). (*per equipment replaced)
• To qualify for this rebate, you need to first complete a Home Energy Audit with a certified energy advisor. After the audit, you make the upgrades of your choice based on your energy auditor's recommendations. After doing the work, you need a post-retrofit audit which must be completed by March 31, 2011.

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FAQ

What are some potentially "hidden" costs associated with installing a geothermal system?

• Landscaping costs resulting from installation of the ground loop can be neglected during the project quoting phase. These costs are proportional to the level up upheaval for the ground loop type being installed, and could be large as well as unanticipated. Professional vendors will be upfront about re-landscaping costs and could even offer a subcontract that could be prudent.
• Electrical service to the home may be insufficient and may need to be upgraded. This is usually the case where prior to geothermal, the house was being heated with non-electrically based sources (natural gas, propane, fuel oil, wood, etc.). Professional vendors should look at the electrical service present in your home on DAY 1 and comment accordingly.
• In a retrofit situation, where the old heating/cooling system depended on forced air and duct work, sometimes additional or altered duct work is needed in order to have it function properly with a geothermal unit.
• Removal of extra dirt⁄soil from excavation and⁄or removal of old furnace units and fuel oil tanks can sometimes be left ambiguous as to who is responsible for removal. In the case of oil tanks and soil, contamination issues could make it a costly afterthought in terms of removal. Good vendors stipulate they are responsible for cleaning up their mess and removing waste generated by the project.

What is the warranty for a geothermal system?

• The warranty for a geothermal system is usually offered at two levels: the manufacturer level and the installer level. The manufacturer will usually warrant the heat pump unit as per their offering (typically between 5-10 years) and the warranty is usually 'passed-on' to the client by the installer company, as-is without enhancement. The installer company will usually warrant their workmanship for a period of typically not less than two years, and will provide manufacturer related warranty labour as arranged and agreed upon by all parties involved.

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Next Steps

Learn about what’s possible for you:

Visit the Canadian Geoexchange Coalition: www.geo-exchange.ca

• Contact one of the vendors from the HERE! Geothermal Directory
• Contact HERE! Here.Office@gmail.com (905) 299-2327
• HERE! offers a $50 Pre-Project Evaluation for geothermal projects:
  – On-site visit and report by a certified tech specialist
  – Project analysis and advice
  – On-going support for your project from HERE!

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