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Demand for Geothermal Heat Pumps To Grow 14% by 2015

Dallas/Fort Worth schools have quietly become a hotbed for geothermal energy.

Robert Crowe, Contributor
January 14, 2011  |  9 Comments

School districts across the nation are starting to replace conventional electric Heating, ventilating, and air-conditioning systems (HVACs) with ground source heat pumps (GSHP). Since the 1990s, when a handful of campuses installed the first GSHP systems, the technology has proven reliable and efficient with energy costs 30 to 50% less than the chiller systems of old. Many new schools now forgo the old roof-top units to install GSHPs connected to 250-foot-deep wells that transfer heat via water-filled polyethylene tubing.

“The earth temperature in our market is 70 degrees, so we have a resource that lets you keep a building at 70 degrees year-round,” said Don Penn, owner of Image Engineering Group Ltd., which has installed multiple GSHP systems since the 1990s.

Across the country, HVAC contractors are showing interest in learning about geothermal heat pump systems since schools and local governments have embraced the technology. Globally, installations of geothermal heat pumps are expected to grow from 2.94 million units in 2010 to 5.66 million in 2015 – a 14% increase, according to Dallas-based research and consulting firm Markets and Markets.

“The popularity has a lot to do with enthusiasm by contractors who see their friends making money doing it,” said Jim Bose, executive director of the Oklahoma-based International Ground Source Heat Pump Association.

The technology, a sort of hybrid of solar energy and energy efficiency, has staying power because the costs are now only about 5% to 10% more than traditional heating and cooling systems, said Penn. In Dallas, conventional HVACs and GSHP systems cost $17 to $20 per square foot. Drilling a well adds another $5 to $6 per foot. Because the schools save 30% to 50% on electricity costs, they can expect to make up the extra up-front installation costs in as little as two years. Over the life of the system, these organizations could save considerably more on electricity compared to using a conventional electric HVAC system, Penn said.

In the winter, geothermal heat pumps transfer heat from the earth into a home, school or office building. In the summer, they transfer heat underground. Some critics have said the systems are not perfect because they have potential to lose efficiency if the ground becomes heat-saturated in warm climates.

While GSPH systems have become increasing popular for homes in colder climates, they are especially suited for large to mid-size buildings with plenty of land that can dissipate heat, Penn said. A GSPH for a 100,000-square-foot building requires a well system with 100,000 square feet of land. Schools have become ideal for the systems because they have extra land to place related wells. 

Penn said the heat pumps he first installed 18 years ago are still operating (they have a 24-year life span) and the wells are rated to last 100 to 200 years.

9 Comments

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Gavin McConnell
Gavin McConnell
September 22, 2011
We do not recommend to proceed with any investment in technologies if the payback is going to be greater than 10yrs.

I am a Senior Design Engineer with Nutherm ltd. Nutherm specialize in the design, supply and installation of Ground Source Heat Pump systems. My experience is in GSHP system design and project management. I have been involved in many projects were systems have been installed that provide simultaneous Heating & Cooling, Passive Cooling, Heating only and Hot water production. System seasonal performance factors of 8 have been realized where simultaneous loads have been utilized within the system solution provided. Systems have been realized up to 500kW.
We are currently looking to expand our business world wide and bring our services and expertise to the US market. Please contact me via email if you have questions or you would like to discuss potential projects. I will be in California from the 1st of October and would be willing to discuss potential projects, our products (5kW to 750kW -single units) and our services. Please email me at gavin@nutherm.eu
andrew pallotto
andrew pallotto
July 24, 2011
RI ( nptschoolcommitte ) I am the East Coast Program Director for AEG www.aeg-group.us , Our GEX4 piping produces 5X the BTU's than convention "U" bend , this equates to 2/3 less bores ( closed loop ) 100% water NO glycol , we also can provide 100% funding that is paid back with future energy savings NO OUT OF POCKET EXPENSE ! we use the Towns bonf rating NOT capacity , Our executive team just returned from Shanghai ,AEG/Hardin was invited by the Government to showcase our technology and City wide district program


Please contact me 203-515-1528 dpallotto@rjtenergy.com
Andrew ( Drew ) Pallotto
Westbrook CT
Patrick Kelley
Patrick Kelley
January 30, 2011
Our local community in Newport, RI is debating the use of geothermal energy for heating/cooling in a 100,000 sq ft 2 story school building that is in design stages. There is some reluctance to commit to geothermal because no RI public schools have used this technology yet, but it seems that it has been used multiple times in neighboring Massachussets.

Are the pitfalls for weary of for a building used as a school (primarily daytime use Sept-June)?
Kate Walton
Kate Walton
January 25, 2011
I am so confused by people who question the returnon investment. Even if it is slightly lower then the quoted rate, you are still saving money. You are lessening the dependence on outside energy and you get tax rebates and incentives. As far as I can tell it is the only renewable that is still applicable for tax helps, so why the issues? If mytaxes go to pay for utilities for government building, then why don't they convert and save a little money? I've seen a book from MCgraw- Hill referenced here a lot, is it any good? I recognize Brian Clark from the web, and I just googled the other author JAy Egg. He does this HVAC geothermal a lot, so it looks legit.
Patty Morelli
Patty Morelli
January 21, 2011
EcoMech Geothermal - is Atlanta's leading firm designing and installing geothermal heating and cooling systems in both residential and light commercial buildings. Focused on Geothermal, we also service and install the following: sprayfoam icynene, solar panels, rainwater collection systems, we perform home energy audits and we are certified as a green builder for Georgia, Florida, and Alabama.
Greg Boutin
Greg Boutin
January 20, 2011
Your title and the later statement "2.94 million units in 2010 to 5.66 million in 2015 – a 14% increase" are confusing. You should clarify it is 14% per year, else it doesn't sound like much. Additionally, it is fairly consistent with previous growth rates, although in the U.S. those have been closer to 20% according to existing research.

Greg Boutin
Managing Director, Growthroute, gregboutin@growthroute.com
Tony Cooper
Tony Cooper
January 15, 2011
Check out our Savings Calculator, it adjusts for region and different home sizes.
http://www.geocomfort.com/calculator
TC
Penelope Ball
Penelope Ball
January 15, 2011
If you would read the book that the second person indicated above, all those costs are listed clearly and regionally in map form. We use the same book for our professional architecture designs. It's basic arithmetic, but you've got to read about it. I'd post it here for you, but I have now way to put it on this message. Like the guy above said Google for a book about geothermal hvac and see what comes up.
ANONYMOUS
January 14, 2011
Geothermal heating and cooling pays back in under 5 years every time with the federal tax incentives. We've designed 100's of systems for cusotmers over the past 21 years, and we have not had any dissapointed customers. Most recently, a customer with a 24,000 foot building dropped from over $3000 per month in energy bills to just $990 for the same month this year. His payback will be a little over a year considering the fact that he was changing his equipemtn anyway. Our best reference is the "Geothermal HVAC" book from, McGraw-Hill. It has information on all types of projects. Google "Geothermal Book"

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Robert Crowe

Robert Crowe

Robert Crowe is a technical writer and reporter based in San Antonio, Texas. He has written for Bloomberg, the Houston Chronicle, Boston Herald, StreetAuthority.com, San Antonio Express-News, Dallas Business Journal, and other publications....
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