The World's #1 Renewable Energy Network for News, Information, and Companies.

Geothermal Heat Pump Market to Triple by 2020

There has been an uptick of interest in renewable energy heating and cooling in the past year, with several U.S. states and other countries establishing favorable incentives. After a two-year slump due to the global economic downturn, Navigant Research predicts that the geothermal heat pump market (GHP) will nearly triple to $17.2 billion by 2020, which is a “slow but steady growth” for the industry, according to Navigant analyst Mackinnon Lawrence.

Find the report, Geothermal Heat Pumps, here.

Among favorable policies cropping up globally, the UK recently announced renewable heat tariffs (which were set at 18.8 pence/€0.22 for ground-source heat pumps), and a coalition has formed in Massachusetts to include renewable heating and cooling technologies in the state renewable portfolio standard (RPS).

But GHPs are still considered a technology that “falls through the cracks” in most policy scenarios, according to Lawrence. Many countries aren’t sure where GHPs fit — are they more a renewable energy or energy efficiency technology? In effect, GHPs “fall down the list behind other less-complex energy efficiency efforts,” he added. Instead of installing a GHP system, many people will focus on less-expensive fixes first, like insulation.

The upfront cost for GHP systems is another major factor that has held back the industry. While in the U.S., for example, there is a 30 percent tax credit towards a new residential system (10 percent for a commercial system), many homeowners simply cannot afford GHPs that can cost up to $25,000. And there are no major technology improvements that can be done to drive down these upfront costs, said Lawrence.

Despite these barriers, GHPs have taken off in countries like Denmark, where laws stipulate that new homes cannot be built with fossil fuel systems. And according to Chris Williams of the HeatSpring Learning Institute and member of the Coalition for Renewable Heating and Cooling in Massachusetts, GHPs can be a perfect weapon to fight rising oil prices, which heats a majority of the homes in the Northeastern U.S.

Overall, the GHP industry needs more consumer awareness. “While solar is becoming more well-known, consumers aren't sure how to access GHPs, and even regional distributors aren’t up to speed yet,” noted Lawrence. 

Read more geothermal energy news here.

Lead image: GHP, Iceland via Shutterstock

RELATED ARTICLES

UK Parliament Clean Energy Leaders

UK Government Names Clean Energy Cabinet Members

David Appleyard, Contributing Editor With the UK general election now over and a majority Conservative Party government in place, the re-elected Prime Minister David Cameron has now named key members of the government charged with steering the UK’s clean energ...
Microgrids

Coast to Coast and Across the Electric System, Microgrids Provide Benefits to All

Dick Munson, Environmental Defense Fund At the most obvious level, microgrids could disrupt today’s utilities and their regulated-monopoly business model, because they challenge the centralized paradigm. In a nutshell, microgrids are localized power grids that ha...
Germany wind turbines. Credit: Shutterstock.

Germany's Powerhouse Feels Pinch of Merkel’s Shift to Renewables

Tino Andresen, Bloomberg North Rhine-Westphalia, the German state that’s home to utilities RWE AG and EON SE, is losing its standing as the country’s powerhouse as wind and solar energy begin to displace conventional sources. Electricity consumers ...
UK Conservatives Spark Renewable Energy Fears

UK Conservative Victory Sparks Climate and Renewable Energy Concerns

Alex Morales, Bloomberg

The surprise Conservative victory in the recent UK elections have some worrying about the future of renewable and climate progress, but officials are now calming those fears.

As associate editor of RenewableEnergyWorld.com, I coordinate and edit feature stories, contributed articles, news stories, opinion pieces and blogs. I also research and write content for RenewableEnergyWorld.com and REW magazine. I manage REW.com...

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Energy Storage USA 2015

Energy Storage USA is the leading conference in the United States focuse...

GEA Geothermal Energy Expo 2015

Every year, the Geothermal Energy Expo® hosts the world's largest ga...

National Geothermal Summit 2015

The Geothermal Energy Association (GEA) is pleased to be holding its fif...

COMPANY BLOGS

Net Zero Energy Efficient Buildings and Geothermal Heat Pumps

As the U.S. market for green building design and construction evolves, ...

Geothermal Earth Day Visual: Shaping Environmental Solutions

Earth day 2015 is an important point in history for the environment. Mem...

Environmentally friendly solutions for projects

geoAMPS joins the celebration of the worldwide observance of Earth Day o...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS