What are the savings?
GHPs consume 25–50 percent less electricity compared to conventional HVAC equipment, so installing one is a great green home remodeling project. In other words, a GHP needs only one unit of electricity to move three units of heat compared to a ratio of 1:1 or 1:2 for other systems. GHPs can decrease energy consumption and the accompanying emissions by as much as 44 percent compared to air-source heat pumps and as much as 72 percent compared to standard electric heat. GHPs can achieve efficiencies of 300-600 percent on the coldest winter night; air source heat pumps can only reach 175-250 percent on just a cool day. GHPs also maintain an approximate 50 percent indoor humidity level, making them desirable in humid areas.
The up-front cost of geothermal as a home renewable energy source is steep. However most experts agree that you can recoup this investment in 5-10 years through lower energy bills, making it even more attractive as a green home remodeling project.
Federal, state, and local tax incentives and other programs can help offset the cost of the initial investment as well. With few moving parts, a GHP system is also durable and needs little maintenance. Many manufacturers warranty the pipes for 50 years and the pump itself usually lasts 20 years.