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The Cost of Geothermal in Oklahoma, part 2

July 27th, 2011 · No Comments · Uncategorized

(IGSHPA)

(IGSHPA)

In the first part of this article, we addressed the upfront cost of installing a geothermal HVAC system in Oklahoma. In this part, we will address the long-term benefits, as well as the efficiency comparisons. Hopefully, after reading all 3 parts of this article, you will be able to make a well-informed decision about installing geothermal in your home in Oklahoma.

Long Term Benefits

Geothermal HVAC systems have a life cycle rating of 20-25 years. Most conventional systems are rated from 10-15 years. An estimated ten more years of usage is a big deal when it comes to life cycle costs, as well as comfort. No one wants to change out his or her HVAC system due to failure. Doing it less often is a good thing.

Now, granted there are exceptions to that projection. We have been in many houses that have conventional units upward of 20 years. So, there is a possibility that a conventional system will outlast a geothermal, and even your dad’s old Ford pickup. But, when dealing with life cycle costs and payback periods of HVAC systems, efficiency is king. A 20-year old conventional unit might have lasted a long time, but at this point (considering the alternatives) it’s basically leaking money.

Efficiency Benefits

Air conditioning efficiency is generally rated in terms of SEER (Seasonal Energy Efficiency Ratio) or EER (Energy Efficiency Ratio.) If you want to purchase a “high efficiency” conventional air conditioning unit, you will probably be looking at systems in the 16 – 18 SEER range. The most efficient conventional air conditioning SEER rating you can get is 21. The higher the SEER or EER is, the more efficient the system is in cooling, which means it uses less energy. So, the homeowner saves more money.

In cooling mode, a geothermal HVAC system is rated at 30 EER. Since most other efficiency ratings are in SEER, the conversion of EER to SEER would put geothermal at about 36 SEER. There is a big difference between 21 SEER and 36 SEER on your monthly bills. This is why even when comparing geothermal with the highest efficiency conventional system a homeowner will still save money on their monthly bills. The efficiency of geothermal for cooling is unbeatable.

Heating efficiency is very difficult to calculate given all of the varying inputs. There truly is no across the board, consistent way to measure the difference between wood stoves and heat pumps. There is AFUE, COP, HSPF and so on and so forth. This gets really confusing because of all of the different acronyms and ratings that a homeowner has to sort through to determine heating efficiency. All of these ratings and percentages mean relatively nothing to the homeowner because what really matters is the cost on the heating bill.

With that in mind, we like to look at fuel cost per million BTU. Geothermal’s cost is around $4.70, where natural gas is around $13.25, and propane is around $37.00.  The heating efficiency of geothermal is untouchable when compared to other conventional heating units. And, more efficiency means less money every month. Which is why in our third and final part of this article we will use actual, real world usage data to compare geothermal with conventional HVAC systems.

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