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bodyguard

I am considering installing a new ground source heat pump at my home. The system will cost me approximately $13000. <br /><br />I consume approx. 600 gallons of heating oil, annually. I estimate a first year savings of $1200 in energy (primarily my oil consumption, some cooling savings in the summer) Assuming a 3% increase in per gallon price of oil over the term of my loan I expect a payback of 7-8 years (excluding interest on the loan) <br /><br />What would you do? Am I being unreasonable to conclude that the price of oil will continue to move upward at a rate disproportionate to inflation? If I don't do it am I going to kick myself in two years?<br /><br />Your thoughts?<br />I currently have a well:<br /><br />$2000 for new return well<br />$12000 for 4 ton heat pump &amp; installation<br />$600 ductwork modification<br />$500 unforseen extras<br />$15100 Subtotal<br />$2000 state rebate<br />$13000 final cost<br />I will not be moving unless something earth-shattering happens<br />

Igor21

Very Nice!!!

My wife and I had Geothermal installed in our previous home 2 years ago. We loved it for numerous reasons. Unfortunately due to a career change we had to move. :( We are hoping to have a system in our new house within the next couple of years. We already had an estimate done because we weren't sure if we could do it because of our lot size and the age of the house (100 years).

We live in Wisconsin where the weather can fluctuate from 80 one day to 40 the next. Our system lived up to our expectations every time. Reliable heating and cooling in a matter of minutes. Prior to installing geothermal we had baseboard electric heating and no a/c. Our heating bills in the winter would run about 300.00 to 400.00. After the install our bills during heavy usage months (Jan/Feb/August) was about 100.00.

The system will pay for itself after time. So you need to ask yourself how long do you plan on staying in your home. It is also a good selling point too. If you wait for the price/improvements of solar panels to come down or improve, that would be a nice addition.

With roughly 30,000 you can take care of your energy needs for the remainder of your life and truly help the environment.

Hope this helps!!

Tim7

Have you checked on any tax or other incentives offered by Fed and State? Are you gonna keep this home for awhile.
My guess on your oil prices. I say your outlook is rather favorable prices might be worse than you forecast. I would guess that a big part of your cost/installation is gonna be earthwork or drilling???

I was leary about the $12000 but according to the source that aint bad I guess labor cost/taxes in your area may be higher I think I would do it. wouldnt stick myself to far out on a financial tree limb to do it though. More bills than paycheck can get to be tiresome.

From source&gt; On average, a geothermal heat pump system costs about $2,500 per ton of capacity, or roughly $7,500 for a 3-ton unit (a typical residential size). ). A system using horizontal ground loops will generally cost less than a system with vertical loops. In comparison, other systems would cost about $4,000 with air conditioning.

X-MEN

Yes! it's expensive at first but aren't all good investments? it's free energy!

GURU

You are so right to include the life cycle costs of what system to install!! I'm so excited to hear you talk about it. I'm thinking your 3% increase is a bit modest, with petroleum over $90/barrel, heating fuel usually follows suit - I would think we will be in the range of 10% increase this year alone - not to mention subsequent years.

My parents have one, their highest monthly bill (in northern Indiana) was $50. That includes hot water heat also.

You should also include the environmental impact - geothermal is renewable and non-harmful to the environment - the continued extraction of natural gas and petroleum is seriously harmful.

Yeah!! Go for it!