Is geothermal worth the upfront cost?

Is geothermal worth the upfront cost?

Geothermal units haven’t come down in price much over the past few years. They still cost between $20,000 and $25,000, on average, which is about 30% to 40% more upfront than a traditional furnace and air conditioner. This doesn’t mean that choosing renewable energy for your home heater isn’t worth it.

How much does geothermal energy cost per year?

The initial cost for the field and power plant is around $2500 per installed kW in the U.S., probably $3000 to $5000/kWe for a small (<1Mwe) power plant. Operating and maintenance costs range from $0.01 to $0.03 per kWh.

Is geothermal expensive to run?

According to the US Environmental Protection Agency, “geothermal heat pumps are the most energy-efficient, environmentally clean, and cost-effective systems for heating and cooling.” They’re predictably low-maintenance, don’t burn expensive fossil fuels, and can reduce energy bills by 65% or even more.

Will geothermal pay for itself?

The payback period for a geothermal heat pump system can vary greatly depending on local utility rates and your upfront costs. It’s safe to assume that most ground source heat pump systems will pay for themselves in somewhere between four and fifteen years.

Is geothermal cheaper than natural gas?

A geothermal heat pump uses electricity. In a lot of areas around the country, natural gas costs are very low. It is much cheaper to operate a natural gas furnace than to rely on an electric furnace. Basically, geothermal heating costs are going to be as good and often better than what a gas furnace can produce.

How long does it take for geothermal to pay for itself?

2 to 10 years
It takes 2 to 10 years for a geothermal setup to pay for itself. Current utility rates and how energy efficient your home is are some of the factors that affect the payback time.

Can you put geothermal in an existing home?

Although geothermal heat pumps can be integrated easily with existing systems such as forced-air or radiant floor heating, you’ll need space in a utility room or basement for all necessary components.

How long does geothermal take to pay for itself?

How quickly does geothermal pay for itself?

How soon you start seeing returns on your investment is dependent on a number of factors but for most consumers the system will pay for itself within 3-7 years of installation. While it may take time for the system to pay itself off completely, consumers will begin to see savings immediately.

Why is my geothermal bill so high?

Heating costs and the savings associated with a geothermal system are relative to energy prices. As the prices of natural gas, propane, and heating oil increase with respect to the price of electricity, the savings associated with getting geothermal increase too.

How much does it cost to install geothermal heating?

Geothermal Heat Pump Cost. The national average cost to install a geothermal heating or cooling system is $7,728, with most homeowners spending between $3,466 and $12,471. Including equipment and variable excavation costs, total prices can exceed $20,000. Geothermal heat pumps come in 2 to 6-ton units and average between $3,000 and $8,000.

Is geothermal worth the money?

A geothermal HVAC system can definitely be worth it. Because they’re so energy efficient, you don’t have to use as much electricity to get the same heating and cooling results for your home as you would with a traditional HVAC system. On top of being more energy efficient, which saves on utility costs,…

What are the pros and cons of geothermal heating?

Geothermal energy pros include a passive energy source, environmentally friendly, and low operating cost once setup. Some geothermal energy cons include high upfront cost, the requirement to be near a geothermal energy source, and the need for water or steam.

Why is geothermal energy expensive?

Geothermal wells are expensive, partly due to the rock formations and high drilling temperatures. In addition to well cost is drilling uncertainty. Even within known producing reservoirs, the driller often fails to hit a fluid-producing fracture.