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Question: Are geothermal systems becoming more affordable thanks to an increase in incentives?

Answer:In the state of Nebraska, ARRA grant money has recently become available to fund renewable energy projects. Surprisingly, geothermal energy is included in the list of potential sources of renewable energy.

While it remains to be seen if this grant money is literally applicable to new construction projects that incorporate systems such as geothermal water source heat pumps, I believe it’s certainly a step in the right direction. Too often, I believe, renewable energy projects are focused on solar and wind predominantly. And while these technologies no doubt will play an increasingly large role in our energy independence, they both still have a way to go when it comes to implementation in a commercial building.

But water source (geothermal) heat pump systems are a tried and proven method for reduction of HVAC system operational costs of up to 35% in some instances. Water source heat pump systems implement a well-field to draw heat from the earth in the winter and reject heat to the earth in the summer. They’re secure from the standpoint that there is no HVAC equipment outside the building that could potentially be vandalized or tampered with and they reduce maintenance associated with heat rejection equipment.

Of course there is additional up-front cost. This cost is substantial and ends up being a deterrent for many projects that would be great candidates for geothermal (residential, office buildings, schools). Local well-drilling companies approximate additional up-front costs at approximately $1,400 per well (hole) at 150’ deep. At approximately one well per ton of cooling, a 15,000 square foot office building would be looking at upfront well-drilling costs of $61,600 alone… These large upfront costs make payback analysis tougher to justify.

Luckily in addition to grant money, government tax credits and rebates make water source heat pump systems more affordable for both residential and commercial consumers and can change payback calculations significantly. Up to 30% of the cost of the well-field makes a big difference and will hopefully help this technology grow to become even more of a mainstream staple.

Sarah Gudeman, LEED AP

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