Cost of Geothermal Energy
Geothermal Energy is a form of energy that is generated by thermal power that is stored within the earth’s crust. Most of the geothermal energy is generated from radioactive decay of minerals. In order to utilize this renewable resource we must analyze the cost of geothermal energy and if the energy source is cost effective.
Geothermal Energy Cost
Geothermal energy cost can be analyzed from two different perspectives due to the types of usage for the source. These two perspectives are residential and industrial geothermal energy. For the purpose of the site we shall discuss the perspective that addresses homeowners and their need of homemade power.
Residential Cost of Geothermal Energy
Firstly, in order to set up geothermal at home or office one of the most challenging factors is to locate qualified personnel for the job. Experts in the field are specialized and can charge some major figures to carry out your project.
Another costly upfront expense is the installation of geothermal heat pumps. The cost of the heat pumps is based on several factors. These factors are the where you live, the ground to be drilled, and the square foot of house. Many systems cost twice that of a regular heat pump system with air condition. A geothermal heat pump system costs about $2000 per ton of capacity, where the average home needing a three ton unit costing about $6,000 to $7,000. The installation includes pipes, other equipment and varying soil condition which can bump the cost to $10,000 or more.
The cost can also be decreased by subsidy from electric company which is usually about $2500. The EPA states that geothermal heat pumps save homeowners 30 to 70 percent on heating and 20 to 50 percent on cooling costs over conventional systems. Average consensus is the roi will take about 5-10 years but this form can prove a great financial decision for long-term home owners. Additionally, star-rated ground heat pumps may qualify for federal tax credits.
Also, geothermal heating does not require a lot of maintenance thus reducing your long term cost. The system has few mechanical problems and the underground pipes are guaranteed to last 25 to 50 years.
The cost of geothermal energy with its long term value and eco-friendly nature is a good fit for most homeowners. 95% of heat pumps owners would recommend the system to friends and family.
Posted in Geothermal Energy
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