{"id":37082,"date":"2023-04-03T15:19:16","date_gmt":"2023-04-03T20:19:16","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?p=37082"},"modified":"2024-06-25T14:41:22","modified_gmt":"2024-06-25T19:41:22","slug":"announcing-grow-geo-chicagoland-get-the-details-on-cubs-new-geothermal-heat-pump-group-buy","status":"publish","type":"post","link":"https:\/\/www.citizensutilityboard.org\/blog\/2023\/04\/03\/announcing-grow-geo-chicagoland-get-the-details-on-cubs-new-geothermal-heat-pump-group-buy\/","title":{"rendered":"Get the details on geothermal heat pumps"},"content":{"rendered":"

By: David Weaver
\n<\/em>Carbon-Free Buildings Coordinator\u00a0<\/em><\/p>\n

The U.S. Environmental Protection Agency says that geothermal heat pumps are the most energy-efficient system to heat and cool buildings and water. But how do they work? Will they work for my home? How much money will it save me? Should I make the investment?\u00a0<\/span><\/p>\n

When I was asked to research a few questions about geothermal heat pumps for a consumer, I had no idea it would lead me down a path to talking to consumers and experts across our state, visiting networked geothermal buildings and working <\/span>to reduce barriers for consumers. Keep reading to learn about these incredibly efficient systems and if one might be a good fit for your home.<\/span><\/p>\n

\"\"<\/p>\n

What are geothermal heat pumps and how do they work?<\/strong><\/p>\n

Heat pump systems are another method for heating and cooling your home in a more energy-efficient and cost-effective manner. Much like a refrigerator, heat pump systems utilize electricity to move heat from cool spaces to warm spaces and vice versa. In the case of geothermal heat pumps, they move heat from the ground to your home or from your home to the ground. They can even move this heat to your water providing extremely efficient water heating. Because heat pump systems move heat rather than generate it, they are a more economically sound way of warming your home. Geothermal heat pumps can reduce energy costs by up to 70 percent compared to traditional heating and cooling systems.<\/span><\/p>\n

\u00a0<\/span>Are they capable of keeping my home comfortable?<\/strong><\/p>\n

Geothermal heat pumps are incredibly reliable and capable of ensuring comfort for homeowners year-round. Whereas furnaces and most radiators rely on burning natural gas to create heat, geothermal heat pumps simply move heat to and from the ground which is much more energy efficient. And as the ground a few feet below the surface remains in the 50\u201360 degree temperature range year-round, these systems are resilient to extreme weather conditions. Just be sure your installer uses the <\/span>Air Conditioning Contractors of America Manuel J<\/span><\/a> for heat gain-heat loss calculations. That will ensure they \u201cright-size\u201d your system (make it the optimal size) and perform yearly maintenance.\u00a0<\/span><\/p>\n

\u00a0(Got a good story about a heat pump?\u00a0<\/em><\/span>Reach out to CUB\u2019s Zoe Huspen<\/strong><\/a>.<\/b><\/a>)\u00a0<\/span><\/em><\/p>\n

What\u2019s this going to cost and save me?<\/strong>
\n<\/b><\/p>\n

There are many variables when factoring in both the upfront cost and energy savings associated with installing geothermal heat pumps. The prices can vary significantly based on the home, labor costs, drilling costs and model type. However, $30,000 is a representative price for your average-sized home. Fortunately, there has never been a better time to install such a system, as there are many incentives to help reduce the cost of geothermal heat pumps.<\/span><\/p>\n

The Inflation Reduction Act has created incentives for heat pumps that can be combined with existing utility company rebates. There is a 30 percent federal renewable energy tax credit for the total cost of installation. (This tax credit is uncapped, and it can be spread over multiple tax years.) On top of that, consumers can get a $2,000 energy efficiency tax credit for heat pumps. <\/span>Learn more about IRA incentives<\/a>.\u00a0<\/strong><\/p>\n

Some electric utilities also offer incentives for consumers who install geothermal systems. For instance, <\/span>ComEd<\/span><\/a> offers a rebate of up to $9,000, depending on the size of the system, for eligible customers.\u00a0<\/span><\/p>\n

With the federal tax credits and utility rebates, the final cost of a geothermal system isn\u2019t that much greater than a conventional heating and cooling system. Studies show that geothermal installations can pay for themselves in energy savings in about six to eight years.\u00a0<\/span><\/p>\n

Geothermal systems also typically last much longer than other heating and cooling systems since they contain no outdoor parts. The heat pump portion of the installation is indoors, while the loop field heat exchanger is buried in the ground. The heat pumps typically last 25 years and loop field heat exchangers are often guaranteed for 50 years.<\/span><\/p>\n

Geothermal heat pumps are much more energy efficient than furnaces, radiators, air source heat pumps and A\/C units, so they should also save you a lot of money. However, the amount of cost savings depends on the changing price of natural gas and electricity. In the state of Illinois, we have a relatively high cost of natural gas and low cost of electricity, which helps make geothermal heat pumps an even smarter decision.\u00a0<\/span><\/p>\n

Furthermore, when you switch to electric heating, your electric utility company may offer you a lower rate, helping to save even more money. ComEd currently charges about two cents less per kilowatt-hour in delivery charges for homeowners who use electric heat. Additionally, because the geothermal heat pumps replace your heating and cooling, and your water heater, this can cut your yearly maintenance costs. Finally, if you fully electrify your home, you can eliminate the fixed costs from your gas utility company, potentially saving you hundreds of dollars a year.\u00a0<\/span><\/p>\n

I put together these charts to give you a rough idea of the costs and benefits of a geothermal system.<\/span><\/p>\n\n\n\n\n\n\n\n\n
Up-Front Cost<\/strong><\/td>\n$30,000 (Estimated. Total cost depends on many variables.)<\/span><\/td>\n<\/tr>\n
IRA Tax Credit(s)<\/strong><\/td>\n-$9,000 Clean Energy Tax Credit<\/span><\/p>\n

-$2,000 Home Efficiency Tax Credit<\/span><\/td>\n<\/tr>\n

ComEd Rebate<\/strong><\/td>\n-$6,000 (Up to $9,000 \u2013 $1,500 per ton)<\/span><\/td>\n<\/tr>\n
Total Cost to Homeowner<\/strong><\/td>\n$13,000<\/span><\/td>\n<\/tr>\n
Yearly Estimated Savings<\/strong><\/td>\n$1,750<\/span><\/td>\n<\/tr>\n
Years to Return on Investment<\/strong><\/td>\n7.4 years<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How should I begin the process of switching to geothermal heat pumps?<\/strong><\/p>\n

    \n
  1. Start planning now.<\/strong>\u00a0Don\u2019t wait until your old heating or cooling system fails\u2013plan ahead to determine the best contractor and best replacement. A crisis is not a good time for such important decisions: It can be expensive because contractors may charge extra for emergency service, and if your home is cold, you\u2019ll be pressed for time and may be tempted to buy the latest model of your old, inefficient system. Additionally, your installer may need time to route permitting papers through your local municipality.\u00a0<\/span><\/li>\n
  2. Weatherize your home.<\/strong>\u00a0The first step for updating your heating and cooling appliances should be to complete a free\u00a0<\/span>Home Energy Assessment<\/span><\/a>\u00a0and\/or a\u00a0<\/span>Home Energy Audit<\/span><\/a>. The free Home Energy Assessment or the much higher quality Home Energy Audit will help you prioritize insulation and weatherization projects for your home. Home Energy Assessments, which take up to 90 minutes, are utility-run programs where an energy expert tours your home to make energy efficiency recommendations and can provide (and install) energy-saving products (LEDs, low-flow shower heads, pipe insulation) for free. The Home Energy Audit\u2013a much more comprehensive process that can take several hours\u2013will test your home and show you where you lose heat due to unsealed windows or a lack of insulation. Improving your home\u2019s insulation will not only help you save money and make your home more comfortable, but it is a critical first step to installing a heat pump so you can ensure you are \u201cright-sizing\u201d your heat pump and not getting a heat pump that is more powerful (and expensive) than what your home needs. (Pro tip: Avoid\u00a0<\/span>extruded polystyrene<\/span><\/a>\u00a0insulation to minimize your carbon emissions.)<\/span><\/li>\n
  3. Shop around to find quality geothermal heat pump installers.<\/strong>\u00a0<\/strong>The <\/span>Geothermal Alliance of Illinois<\/span><\/a> provides third-party accreditation of installers, and additionally, major geothermal manufacturers also maintain lists of qualified contractors (<\/span>ClimateMaster<\/span><\/a>, <\/span>GeoComfort<\/span><\/a> and <\/span>WaterFurnace<\/span><\/a>). This is a great starting place to find qualified installers. You should get at least three quotes and make sure you feel comfortable with an installer\u2019s professionalism, competency, timeline and price. Also, check the\u00a0<\/span>Better Business Bureau<\/span><\/a>\u00a0to determine if there have been any complaints filed against the company. <\/span>Take note:<\/strong> Just because a company is certified doesn\u2019t mean the individual installer serving you is. Verify that the employee designing, installing and maintaining your system is certified by that manufacturer.\u00a0\u00a0\u00a0<\/span><\/li>\n
  4. Insist on load calculations.<\/strong>\u00a0<\/strong>The proposal should always start with a load calculation. This means the installer measures the rooms and window dimensions and makes a list of the insulation values in attics, walls, and basements, along with window types and directions. All these details are needed to calculate the amount of necessary heating and cooling to keep the house comfortable (called heating and cooling loads). This is often called a \u201cManual J\u201d (the name of a widely recognized load calculation procedure). \u201cBigger\u201d is not \u201cbetter\u201d when it comes to heat pumps. In fact, \u201ctoo big\u201d can create significant performance problems.\u00a0<\/span><\/li>\n
  5. Ask questions.\u00a0<\/strong>Consider asking your prospective installer the following questions to ensure you are working with a true professional to design and install your new heating and cooling system.<\/span><\/li>\n<\/ol>\n