1)When or what is my pay off?
2). If I choose, or have to sell my house prior to my "pay off" will I recover my investment? The simple answers are;
1) Your pay off is immediate, they generate their own fuel.
2) Yes, you will recover your investment even if you sell your house before your pay off.
The questions you should be asking are; how will I reinvest the money I am saving annually by not having to purchase fossil fuel? Or, why would you pay for fuel when you can own the refinery?
Geothermal heat pumps generate their own primary fuel (stored, compressed and redistributed solar energy) greater in value than fossil fuels because the supply is endless and your system increases in value as fuel prices go up. Their operating cost is 350 to 400 percent less than their output! (Return on investment: one kilowatt of electricity used to operate the pump, heat generated 3 to 4 kilowatts of heat )
Considering geothermal is one of the smartest investment decisions you will make in your life. Comparing geothermal to a standard heating and cooling system cannot do justice to the financial advantage geothermal holds over the head of standard space conditioning systems. No one would argue the environmental benefit of geothermal, having eliminated on-site emissions of carbon monoxide, the silent killer and carbon dioxide the global warmer. But lets look closer economically at a standard system. Unfortunately, for you the consumer, it is a disposable item. It is used up, disposed of, a new unit purchased, and the cycle is repeated. If that were not enough of a financial drain you are hit again with monthly fossil fuel charges, operation and maintenance costs. Not only is there no "pay-back", but your forced by planned obsolescence to repeat the cycle. There is only negative cash flow during the entire cycle. You pay it off, replace it and the cycle begins again, not to un-similar, to owning a car.
THE PAY OFF
Heat pumps generate primary energy no different from a windmill or hydroelectric plant. Yes, they have both an initial cost and the cost of electricity to run the pump. However, for every kilowatt you spend to operate them, they generate between 3 and 5 kilowatts back, making them 300 to 500% efficient. That is both the pay off and return on investment as simple as it get. You pay for one you get four in return. They are even more efficient than our new super windmills. Other costs of operation you ask, their only scheduled maintenance is changing the air filter. There are no annual inspections or tune up fees to see if it is burning correctly or leaking poisonous gases. However, what makes heat pumps the best investment decision you will ever make in your life? The answer is the loop field.
The heat pump component of your system is one-half of your system and it is located in your home. The loop field component is the other half that is buried in your yard. The heat pump components have a 20 to 30 year projected lifespan. Their individual components such as a valve or compressor may have to be replaced or rebuilt, however the loop field portion of your system will last for 200 years. It is an equity item, whose market value at any time is equal to its replacement cost, and whose market value for its ability to generate energy cannot be surpassed by any other single item built into your home, other than location, location, location.
By lowering the operation cost of your home, you will free up revenue to reinvest, at your discretion in your overall financial future. Consider this; on a 6000 square foot home recently retrofitted. The client�s $3482.00 dollar annual heating and cooling bill was reduced to $760.00 dollars! This freed up $2721.00 dollars. Invested incrementally and annually over 30 years with a 10% return would net $495,000.00 dollars, money you would have burned up purchasing fossil fuels. Now ask yourself again if you can afford a geothermal system. You cannot afford not to.
The 20-year return on investment is typically around 10 percent. Therefore, the minute your system is up and running you are making back the capitol you invested as well as guarding against budget fluctuations in the cost of fossil fuels, something that we unfortunately have no control over. Do you still want to stick with what you have now? Settling for what you have now is unfortunate when you can afford to produce your own energy typically with no more investment than what you already have budgeted for fossil fuels.
People's initial reaction is "Who pays that much for a heating and cooling system?" "That's outrageous". The answer is the person who does their homework. It is only perception, which holds you back from making the most intelligent purchase decision of your life.
Before you ask us for an estimate, you need to have already made your decision to go with geothermal based on what was written above. The initial cost which is typically between $19,500.00 for a 1000 square foot home( actually 2000, which includes the basement and one floor both 1000 square feet) and $27,000.00 for a 5000 square foot home. Cost will vary locally depending on many factors.
Inner Earth Energy Copyright 2007
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