Pricing Your Geothermal Installation: Key Considerations
Geothermal heating and cooling is an intriguing technology, but the initial cost can seem daunting. Equipment and installation of a ground-source geothermal system can exceed $10,000, depending on several factors. Keep in mind that you can take steps to lower that initial cost, and the high efficiency and longevity of geothermal make it an extremely attractive option for the long term. Here are some factors to consider when you’re pricing your geothermal installation.
- Equipment: A geothermal system requires an inside unit and an outdoor underground loop system where heat is captured and released. The inside unit consists of the heat pump itself, plus the air handling system that distributes heated and cooled air in your home.
- Size of heat pump: Your geothermal heat pump has to be correctly sized to provide the indoor comfort you require. Larger heat pumps — which are typically required for larger homes — cost more. By lowering your heating and cooling load, however, you could do with a smaller unit. Boosting your insulation, sealing air leaks and installing energy-efficient windows are three measures you can take to lower your heating and cooling load.
- Size of underground loop: A larger underground loop system costs more to install because of the additional digging and trenching required, The type of loop system is also a factor. A horizontal loop is installed over a wide, flat area, while a vertical loop is deeper.
- Usability of ductwork: Geothermal installations sometimes require modifications to ductwork.
- Tax credits: The U.S. government offers substantial income tax credits for geothermal installation. These credits amount to 30 percent of the cost of both equipment and installation, with no upper limit, for systems put into use by Dec. 31, 2016.
Rinaldi’s Energy Solutions has more than 42 years of experience as a premier heating and air conditioning contractor in central Florida. Contact us for more information on geothermal heating and cooling.
Our goal is to help educate our customers in Orlando, Florida and surrounding areas about energy and home comfort issues (specific to HVAC systems). For more information about Geothermal Installations and other HVAC topics, download our free Home Comfort Resource guide.
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