While it may not be the most stylish or glamorous of home interiors concepts, we certainly can relate to wanting to make our abodes as comfortable as they possibly can be. And that means they are cozy and warm in the winter and temperately cool in the summer. That is something we count on our HVAC systems for, and probably something we don’t think about all that much unless there is a problem.
As home climate control options evolve away from the sticker shock of fossil fuel-generated systems and into smarter, more resourceful options, we’d like to explore one of the most popular alternative of them on the home energy market, geothermal.
Like most emerging technologies, consumers who are considering making a wholesale switch tend to have a lot of questions associated with the new tech’s application, efficiency, and cost. Not to mention the unique talking points around the new technology. Remember, not so long ago when the buzz words were “solar,” “green,” and “sustainability?” Just like those terms, geothermal heating and cooling will no doubt have its own nomenclature, but rest assured, those will become —and pardon the pun— second nature, as well.
So, what is geothermal heating and cooling and how can you make it work in your household?
Primarily, consumers access the heat generated at the Earth’s core using ground source heat pumps or direct-use geothermal technologies. There is a third technology referred to as a deep and enhanced geothermal system, which is larger-in-scale process developed for industrial, commercial, and agricultural use.
A ground source heat pump, also referred to as a geoexchange system, utilizes a series of underground pipes either buried in horizontal trenches just below the ground surface or as a series of vertically drilled boreholes in which the pipes are extended several hundred feet below the ground. Exploiting the naturally occurring temperature difference between above-ground air and the subsurface soil, the system moves heat via the pipes for end-use in either the form of space heating or space cooling. It can also be used to heat water.
The heat pump circulates a heat-conveying fluid or water through the pipes that moves the heat that it has absorbed from warmer rock, soil, or ground water around it, and moves it from point to point. A heat exchanger then transfers it into a structure’s existing air handling, distribution, and ventilation system. A desuperheater can also be added to heat water for domestic use.
A potent means of renewable energy, once the heat transfer to the structure is completed, it returns at a lower temperature to the ground loop where it is heated again, and the process repeats itself.
According to the Environmental Protection Agency, (EPA), if the ground temperature is warmer than the ambient air temperature, the heat pump can move heat from the ground to the building. It can also work in reverse mode to move the ambient air in a building into the ground, which then cools the building. These types of pumps will require a nominal amount of electricity to drive the ensuing cooling or heating process.
The benefit here, however, remains significant, as for every unit of electricity used to operate the system, the heat pump can deliver as much as five times the energy from the ground, resulting in a net energy benefit.
If the system is in cooling mode, water or another fluid absorbs the heat from the air inside through the heat exchanger, much in the same way an air conditioning unit works.
What does my upfront investment look like?
The bulk of the cost of installation involves prepping your property for the delivery of this method which requires either digging the trenches for the pipes which are laid horizontally or drilling to place pipes vertically into the ground several hundred feet below the surface.
We spoke to Eastern Shore resident, Jim Bogden, who has gone through the process of converting an oil-based heating system to geothermal via a ground source heat pump and is extremely pleased with his decision.
“So, my $23,000 system effectively cost me $14,000 up-front to eliminate the need for oil,” says Bogden. “Combined with upgraded insulation and rooftop solar energy, my net energy cost averaged over the [course of a] year is essentially zero.”
The process, he says, involved drilling three, 300-foot wells, where loops of plastic pipe were then connected and buried.
“The pipes route through the crawlspace of the house into a small basement,” explains Bogden. “There, a noiseless, desk-sized unit sits, protected from the weather and keeping the house comfortable and cozy year-round.”
The installer even removed what he calls a “dinosaur” of an oil furnace and storage tank at no cost.
Bogden, who is retired and has an extensive background in education, says he has been concerned about the environmental impact of the continued use of fossil fuels, so he made the switch.
“Every step to reduce fossil fuels helps the environment in the long run,” he adds.
What incentives are available to help assuage the cost?
While it is estimated that an effective geothermal system can save up to 70 percent on your home’s heating, cooling, and hot water costs year-over-year, the upfront cost and temporary inconvenience of having the system installed is off-putting for some and just a non-starter for those with lower or moderate-income levels.
However, like electric vehicles and solar panel installation, government on both the Federal and State level does offer some persuading incentives.
There has been some confusing information surrounding the Federal incentive program in recent years as the percentage deduction has fluctuated from 30 percent at the tax credit’s inception in 2005, down to 22 percent over the last six-year period. The recent passing of the Inflation Reduction Act in 2022, however, re-instates the 30 percent deduction through 2032, with a step-down plan in place through 2034. So, if you are considering making the switch now is the time to start researching if this is a good option for you.
On the State level, Maryland offered a $3,000 credit for the installation of a geothermal heat and cooling system in 2023. State funds for the fiscal year under the Clean Energy Rebate Program, which also provides incentives for solar-based technologies, did run out in mid-2023. The Maryland Energy Association (MEA) cited a high volume of applications for these programs.
According to the MEA website, applications for participation in the fiscal 2024 program began on July 1, 2023. So, while this may not be stylish or glamorous subject matter, if history is any indicator, this will be another year for high volume as interest in these technologies trends only continues to increase.
