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The GREEN in Geothermal Heat Pumps

The GREEN in Geothermal Heat Pumps. Shelton Cartwright, Jr. WaterFurnace International Territory Manager Virginia – Maryland and Washington, DC. Cost Savings Cannot Be Ignored. This Morning’s Session. Snapshot of WaterFurnace International

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The GREEN in Geothermal Heat Pumps

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  1. The GREEN in Geothermal Heat Pumps Shelton Cartwright, Jr. WaterFurnace International Territory Manager Virginia – Maryland and Washington, DC Cost Savings Cannot Be Ignored

  2. This Morning’s Session Snapshot of WaterFurnace International Quick overview of geothermal technology and history Important growth trends including incentives from Federal, State and Local governments

  3. This Morning’s Session • Cost Comparisons using a suggested professional approach by an HVAC contractor • New Home Example • Existing Home Example • Live Examples using the WaterFurnace Online Savings Calculator

  4. About WaterFurnace • Established in 1983 • Over 300,000 geothermal units installed • $129 Million (US) in Sales for 2009 • Traded on the Toronto Stock Exchange (WFI) • $26.11 (Canadian) Per Share on March 19, 2010 • Headquartered in Ft. Wayne, IN • 115,000 SF Headquarter/Factory • Served by a geothermal pond loop system

  5. About WaterFurnace • Staff of 5 Trainers • Geothermal Pipe & Design • Service and Installation • One Day Refresher Training

  6. Geothermal Overview Heating Cycle The optional desuperheater takes heat from the unit and uses it to heat water inside a domestic water heater tank. Heat is extracted from the earth and moved inside the house with water pumps, then transferred to the air coil via the heat exchanger, compressor and refrigerant cycle.

  7. Geothermal Overview Cooling Cycle The optional desuperheater takes excess heat from the unit and uses it to heat water inside a domestic water heater tank increasing the overall efficiency. Heat is extracted from the house and via the air coil and refrigerant cycle, transferred to water inside the heat exchanger then moved with water pumps and rejected into the soil outside.

  8. Geothermal Overview • Types of Geothermal Units • Water to Air • Water to Water • Dual Capacity Compressors, Scroll Compressors • Vertical, Horizontal • Package and Split

  9. Geothermal Overview • Types of Loops • Horizontal • Vertical • Pond • Open • Boiler

  10. History of Geothermal • No longer a science project • First GHP 1904 in Lardarello, Italy • 1948 Ohio State Professor develops the first GHP for use in a residence • 1978 First modern GHP home in Oklahoma • 1982 First commercial closed loop system

  11. Growth Trends 5 Year Industry Unit Shipments* (000) *Source: AHRI

  12. Factors for growth • Greater perceived comfort • Lower operating costs • 2007-2008 Oil and LP fuels price jump • Higher electric utility costs • Consumer acceptance as “mainstream” technology

  13. Factors for growth Demand side programs from electric utilities State & Local incentives Federal tax stimulus

  14. Federal Tax Credit • Homeowners: • 30% of the entire cost of the project. • System must be placed in service between January 1, 2009 and December 31, 2016. • The home does not need to be the taxpayer’s principal residence. • Equipment must be Energy Star Rated. • Commercial: • 10% of total cost • Installed between 10/3/2008 and 12/31/2016 • Building located in the U.S. • Equipment must be Energy Star Rated. http://www.dsireusa.org/

  15. Maryland Example • State : • Grant $500 per ton Maximum $3,000 for Residential. • Grant $500 per ton Maximum $10,000 for Commercial. • Howard County: • Property Tax Incentive. • 50% of eligible costs • Maximum $5,000. • Excess may be carried forward for 2 years. • Other Maryland counties also have incentives for geothermal. http://www.dsireusa.org/

  16. Cost Comparisons How Geothermal Compares to Conventional

  17. EER is Higher Than SEER 21 SEER ≈ 15 EER or ½ of a 30 EER Geothermal Heat Pump

  18. Bin Capacity Geothermal Vs. Energy Star Heat Pump Back-up heat needed Typical geothermal system’s balance point is at lower temperatures than with conventional heat pumps

  19. Winter Bin Heating Hours Typical geothermal system’s electric back-up operates for fewer hours than conventional heat pumps

  20. Tools for Calculating Energy Costs Note: Other geothermal manufacturers have software similar to GeoLink Design Studio available for HVAC contractors. • Manual J – To Calculate Heating and Cooling Loads • WaterFurnace Savings Calculator – Allows homeowners to calculate savings based on their home’s square footage and weather zone • Unique software available to WaterFurnace Dealers: • Gizmo – calculates savings based on unit(s) selected • GeoLink Design Studio • Helps dealer select the correct unit for the given loads • Calculates needed trench or bore • Calculates projected energy costs • Calculates cost comparisons

  21. Energy Costs (Virginia) Source: U.S. Energy Information Administration http://www.eia.gov/

  22. Homeowner Costs NOTE: Costs based on the Virginia market. Costs will differ in other states and regions. In addition, costs will differ according to soil conditions and home design. • 30 Year Fixed Mortgage 5.02% • Equity Loan 5.25% • 5 year CD 3.2% • Installed Cost of Geothermal (2 to 6 tons single unit system) • New $18,000 to $26,000 and up plus loop • Retrofit $15,000 to $20,000 and up plus loop • Loop $3,400 to $14,000 and up

  23. New Home Example • Two story home • Two 3-ton Geothermal Heat Pumps • Northern Virginia Actual example home not pictured

  24. Value of the loop Cash Flow Analysis Explain the benefits early in the decision cycle. Note: Zero escalation rate yields conservative results

  25. Operating Costs • Annual Savings • Geo vs. 16 Seer = $936 • Geo vs. Gas = $894 Note: Calculated from GeoLink Software and Manual J data.

  26. Energy Star Rated Systems Geothermal Vs. Conventional $4,749 $4,017 2 Story Home with two 3-ton Geothermal Heat Pumps $2,566 $2,608 $1,670 Northern Virginia Weather Zone, Gas Water Heaters are Power Vented

  27. Retro-Fit Example • My House • Charlottesville, VA • 3 Story Townhouse • 20 Years Old • 1,600 SF • 10 SEER Heat Pump • Replace old HP with 3-ton Geothermal Heat Pump What a winter! Sick of snow, now that spring is here I have to repair my HVAC, or replace it with a geothermal system.

  28. Savings Calculator Homeowner visits the WaterFurnace or a dealers website and can calculate the savings for their home…

  29. Savings Calculator The Savings Calculator locates the home using Google Maps…

  30. Savings Calculator After input of age of home and fuel type the homeowner receives an estimated annual savings…

  31. Dealer Comfort Specialist Visits the Home Assesses property for most practical type of loop. Measures the home for a heat loss/gain. Review Expected Energy Savings with the homeowner.

  32. Value of the loop Life-Cycle Analysis Note: Zero escalation rate yields conservative results

  33. Year-6 forward, $105.41 positive cash flow per month Cash Flow Analysis Note: Zero escalation rate yields conservative results

  34. Operating Costs HVAC Dealer follows up preliminary costs savings after Manual J study. • Annual Savings • Geo vs. Repair= $1,257 Note: Calculated from GeoLink Software and Manual J data.

  35. Energy Star Rated Systems Geothermal Vs. Conventional $2,186 • Retrofit Home • Options: • 30 EER Geothermal • Existing 10 SEER • New 16 SEER HP • New 95% AFUE Gas Furnace with 16 SEER AC $1,516 $1,334 $918 *Not Energy Star Rated Northern Virginia Weather Zone, Gas Water Heaters are Power Vented

  36. Notes About Estimates Emphasize the savings ratios not the final amounts. The GeoLink Studio and other similar software uses algorithms based upon the latest ASHRAE engineering methods, 20-year average weather data, and a system installed according to the manufacturer’s guidelines.

  37. Notes About Estimates • Lifestyles can impact energy usage as much as 30% for similar sized homes. • Retired man leaves his home 1 to 2 weeks per month and is left disappointed with his actual savings. • Some people just don’t take enough showers. • Weather can dramatically increase/decrease bills.

  38. Winter Degree Days Dulles Airport Degree Days This past winter we had a colder December and February, but January was colder last winter. 2007-08 was closer to the “normal” winter.

  39. Summary Geothermal systems are no longer “science projects” and are considered mainstream technologies by potential users. Fuel prices, utility programs, and government incentives have contributed to the adaptation of geothermal technologies. Geothermal system efficiencies are significantly higher compared to conventional HVAC systems.

  40. Summary It is important to train HVAC contractors to understand the impact of lifestyles and weather conditions when communicating energy savings to their prospective customers. HVAC contractors have professionally developed software to carefully project energy savings for their prospective customers. Homeowners enjoy higher ROI’s when geothermal systems are picked vs. other choices, even the choice to repair broken HVAC equipment.

  41. Live Examples WaterFurnace Savings Calculator http://www.waterfurnace.com/savings_calculator.aspx

  42. Questions http://www.waterfurnace.com/contact.aspx

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