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Making Ground Source Geothermal a Win-Win Resource for Utilities and Customers

Bruce Dorminey, Contributor
October 31, 2012  |  34 Comments

In its 75-year history, modern ground source geothermal energy (GSGE) has flown so far under the radar, it might as well lie in your granddad's root cellar. But unlike root cellars, built as crude geothermal systems to preserve perishables in a static environment, a ground source geothermal heat pump (GSGHP) can deliver a dynamic and effective heating or cooling system.

In winter, GSGE extracts heat from the constant temperature reservoir provided by the earth’s underground geothermal gradient.  Then in summer, the cycle is reversed and GSGHPs reject heat back into the ground.

GSGHPs currently make up some 5 percent of the total heating, ventilation and air conditioning (HVAC) market.  In the U.S., an estimated 100,000 residential and commercial GSGHP units are installed annually, with the current market fairly evenly distributed between residential and commercial sectors. 

“Ground source geothermal energy is one of the best renewables, even though it took a while for people to consider it a renewable energy source,” said Garen Ewbank, an industrial engineer and the owner of Ewbank Geo Testing in Fairview, Oklahoma.  “It’s renewable because of the constant temperature due to the earth’s geothermal gradient.  About 1 percent actually comes from solar; the rest is geothermal.”

The key to it all is sheer geothermal underground dynamics.  A couple of dozen feet under, temperatures remain the same almost year-round.  As Ewbank notes, ground source temperatures tend to vary from 49 degrees in Toronto to 72 degrees in the Florida Keys, which he says represents a surprisingly narrow range for such a wide geographic area. 

GSGE taps into this constant energy gradient in both winter and summer to heat and cool homes, businesses, schools, hospitals, retail stores, hotels, ski resorts, even the Statue of Liberty gift shop.  But the residential market arguably could offer the GSGE industry the most potential growth. 

A typical closed-loop installation involves three vertical 250 ft. deep bore holes which are, in turn, loaded with high density polyethylene pipe to circulate water from the indoor heat pump throughout a continuous pressurized loop. 

Using a fan, compressor and indoor heat pump, the GSGHP system extracts heat from this constant ground source and during winter compresses it to higher temperatures.  During summer, the system simply reverses.  The most commonly used GSGHP setup uses a closed-loop heat exchanger, water and underground piping to either extract or reject the heat.

As Ewbank explains, the whole point of the ground source heat pump is to transfer heat against the direction it would naturally go. 

Even so, electricity, water and refrigerant are still needed to run the system, which is typically four times as efficient as a conventional HVAC.

The first GSGHP systems in the U.S. were installed in the late 1930s, but fizzled out in the early 1950s due to construction and design issues.  But the industry got a reboot in the late 1970s; about a decade after air source heat pumps became common in the U.S. 

“Instead of exchanging energy from the environment where you have a refrigerant to air heat exchanger, GSGHPs have a refrigerant to water heat exchanger,” said Jeff Spitler, a mechanical engineer at Oklahoma State University in Stillwater. 

A fan and duct system then circulates the hot or cold air from the heat exchanger to points throughout the home or business.

But to install and equip a three bedroom house with a GSGHP, count on costs that are roughly double that of a conventional heating and cooling system.  However, with tax credits for installation, homeowners can expect to recoup their investment within five years.

“The market is still maturing because there are still places where you can’t find a competitive bid on this kind of technology,” said Spitler.  “And as you go farther south, it’s less likely to be economically feasible.”  

Spitler notes ideal GSGE locations are regions with big temperature swings like Oklahoma.

Ewbank says that in Oklahoma, with brutal 115 degree summers and 0 degree winters, GSGHPs can tap into a constant deep earth temperature of about 64 degrees.  The end result is that ground source energy can be pumped in and out of houses or businesses, using less refrigerant and less power than conventional HVAC systems.

“Ground Source Geothermal is a more reliable and efficient way of doing air conditioning,” said Eric Woodroof, the Kentucky-based CEO of Profitable Green Solutions, an energy efficiency consultancy.  “It’s easier to reject heat to 60 degrees than it is to 100.  And in the winter, it’s a heck of a lot easier to absorb energy from 60 degrees than 32 degrees.”

But with new home construction still in a slump and existing homeowners already looking to cut corners, intital costs are holding many homeowners back from taking the plunge into GSGHP.

“The first cost needs to be at the utility scale,” said Ewbank.  “Let the utilities install and finance them, then the homeowner could choose a very efficient system and not be subject to the first cost.” 

The idea is that utilities could then just bill their GSGE customers for BTUs of geo-cooling or heating rather than in kilowatt-hours.

Ewbank says an electric utility would gain winter load since customers wouldn’t shift from electricity to fossil fuels to heat their homes.  And, in turn, gas utilities would gain summer load, since homes cooled by gas-driven heat pumps are the rare exception. 

Ewbank says that, in essence, GSGHPs are no different than any other energy production facility.  The difference is that competing energy technologies’ higher “first costs” are usually borne by either the public at large or utilities involved in financing such projects.

Thus, Ewbank says, the challenge is to make sure that when future new homeowners argue over whether to forego Ground Source heat pumps in favor of granite kitchen countertops, they will understand that they have options to have both. 

How can that happen? 

“We’ve got to shift the first costs of installation,” said Ewbank. 

In the meanwhile, Spitler says that newer, less expensive drilling techniques and improved heat exchangers would help make GSGE more attractive to both new homeowners and potential commercial users.  But as Spitler points out, it’s likely that the average U.S. homeowner, school or business doesn’t realize that Ground Source Geothermal is a viable heating and cooling option.

However, Doug Dougherty, the president and CEO of the Geothermal Exchange Organization in Washington D.C., says that although new marketing efforts should help bolster GSGE’s prospects, he doesn’t foresee a significant increase in market-share until new home construction returns to pre-recession levels.  

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Lead image: Geothermal heat pump diagram via Shutterstock

34 Comments

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Jon Pierce
Jon Pierce
January 19, 2013
EARTH COUPLED is the 1979 term by the 2nd oldest (?) OEM GT HP ghp mnfr...

Hydro-Temp com where patented INSTANT-ON-DEMAND Hot Water was in place several years before hydro-delta-hydro-heat... AND RECLAIMED all the compressor het to 126 degree outputs at 3 gpm per 10,000 btuh's WHILE IN COOLING--- so units were in restaurants cooling dining, and preheating Kitchen water without a w:w unti other than f-air cooling with HW (full-size desuperheating +PLUS !)...
That is why others did not build this, as it was patented.

Good enough for 80% installations was their 3 staging dual compressor small+large= both in 3rd stage... such that in ASHRAE 2008 NY was heard the 12% superior results (and later the first NET ZERO SCHOOL with small solar) over the next closest GT school by a ClimateMaster system... and IT NEVER HAS A THIRD PARTY AHRI STICKER but COMPLIES with all E-Star and is rebated by ALL UTY PROGRAMS, even Ohio and NY !

Now since 1981 SOLAR on a SS tanker tank buried in ground in Canton OH had GT TETCO W:W packing out 125 deg to BASEBOARDS of 40% longer for a home than 160 deg specs and it worked through -5 to -8 deg below, PERFECTLY and throughout over 22 years...
Another of 1982 is still running TODAY, on their SECOND SE of grundfos pumps (hah!) We like it sincerely GT ! www GEOPROS org
Gary Richardson
Gary Richardson
November 9, 2012
@peter bradshaw
I think you're right, besides, saying ground source geothermal is kind of windy.
Perhaps terrathermal would have been better.
Peter Bradshaw
Peter Bradshaw
November 9, 2012
This article appeared with several others also using the word "geothermal", most of which refer to geyser-type geothermal systems. One even talked about finding new places where 'geothermal" would work. The kind of thermal storage/exchange system described here can be used just about anywhere, and I think it would be better to use another term than just "geothermal" such as "geo-exchange" or "geo-storage" to avoid confusion between very different technologies.

I am delighted that as much as 5% of the HVAC market is based on ground source technology. I think if the name used were not "geothermal", which for most people implies geyser-type systems, further implying that it can only be used in such a special area, it could easily get to a much higher penetration very quickly.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 9, 2012
There are many different grouts guys use and all have various thermal conductivity. The idea is to make sure there is moisture and contact with the pipe constantly. The holes that fill with water are fine provided the water stays there and you should grout from where the water stops to the top or not count that pipe in your loop design as heat exchanger.
Ron Tolmie
Ron Tolmie
November 8, 2012
Gary - It is normal to use grout in the holes, although there are cases where they are just filled with water. The Drake's Landing heat store operates at a relatively high temperature but the grout is similar to that used for low temperature stores and for GSHP installations. Graphite, which has a higher thermal conductivity, can be used but is not common.
Gary Richardson
Gary Richardson
November 8, 2012
At Drakes Landing, their boreholes were filled with a concrete-like slurry. Is this use of slurry common in this industry? Also, if the use of slurry is common, is the recipie changed to suit variables such as heat loss or gain, moisture, susceptibility to earth movement, year-round conditions, etc... ?
Anne Fowler-Edin
Anne Fowler-Edin
November 8, 2012
http://aeg-group.us/?page_id=115
Ralph allen
Ralph allen
November 8, 2012
Anne do yoiu have a link?
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
Ann are you reffering to rehau pipe?
Tony, I am aware of the improvements and they are all good. It still remains a problem after compressor burnouts. The loop must be cleaned and a vacume pulled on the system. Earth loops are an art of sorts but actual sizing is the key. Sizing takes into consideration heat loss and gain, run time, geology, moisture in the ground. You essentialy have two homes side by side andmay have a different loop. If you look at most developements built not every home has the same condenser outside or furnace inside. Go to Geoconnectionsinc.com. I use this software to come up with the length of loop.
tony penachio
tony penachio
November 8, 2012
Having been involved with Envirotherm, a company that in the early 1990 improved the Dressler patent and filed new patents thereto, and then installed hundreds of those systems in various regions of the USA, I can state that yes, oil control is paramount item of consideration in any refrigeration system and that our improvement to the Dressler patent addressed that item specifically and I might add, successfully. Today's technology has allowed the even further and further placement of components from the compressor (e.g. the Daikin and other mini splits) than the day of yore. Properly engineered systems of any type, open or closed loop and/or dx, are the industry' goal as poorly deigned and/or installed system of any type are problematic to industry expansion, no? With conventional geo the field deign is up to the installer and 100 installers can theoretically approach that deign from 100 different perspectives. I recall reading a major geo HVAC manufacturer calling loop deign a much and art as a science. Is that the true state of the loop industry?
Anne Fowler-Edin
Anne Fowler-Edin
November 8, 2012
Geothermal Innovations, an Indianapolis based geo tech firm makes a heat exchanger that optimizes the use of a 6 inch bore hole. A 400 ft bore hole (here is SE Michigan) can produce about 6 tons of heating & cooling - enough for 2 average size homes. This brings the field costs down by about 30% - the pipe is more expensive than u-bend but there are significant savings in drilling. The City of Wyandotte, MI, has been using this heat exchanger for geo installations financed through the City's municipally owned utility. They charge homeowners that participate in the program a monthly geo fee based on the tonnage of their HVAC equipment - about $35 per ton.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
One other thing Gaucho, if you would have a compressor failure and you replaced the compressor on the same refrigeration loop good luck. When a compressor fails it releases all kinds of contaminates,acids and ash. If you would simply replace the compressor no telling what is left in the loop. Refrigeant will dissolve most of the mess and bring that right into the compressor, this is not good. The new compressor will not last very long if at all. You cannot take one unit out and install another on the same refrigeration loop. You must also replace the loop. Contaminated refrigerant ruins all efficiencies and hinders the life of any compressor.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
I do not mean to be negative. I do embrace all new technology. If you search Dressler systems, that is where the DX got its start. As I said if I could take 50% out of loop costs It would be a boon to our industry. The point is; this is a viable, historicly dependable system(GSHP- ground source heat pump)If we could get loops cheap enuff you could go to neighborhoods and change out the oil funace or any fossil fuel system to geo or dx whatever the case may be
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
Oil is used to move the refrigerant around and lubricate the compressor. It is direly important to bring the oil back to the compressor. My assesment is realized from 30 years experience manufacturing installing and now distributing geothermal heat pumps. I have seen many law suits, some work some do not. When they do not work it is a mess. I could give you names of people where it works and a comparable list of those that haven't. Most involved are very small manufacturers. So there isn't a whole lot of mony available to help. On paper it almost makes sense. But I have yet to see a company installing, distributing or manufacturing survive a long period of time. Those that do survive must supervise the installation very carefully.
Ralph allen
Ralph allen
November 8, 2012
PRYdybasz You have talked about oil and yet I cannot find where oil is used in the process. Where do you get your data on inconsistency of the system? How can the system be inconsistent when a guarantee is provided? You seem to throw out a lot of negatives and yet you provided no links to support your assertions. You are also incorrect when you say that the system can only be used with the one it was installed with. The compressors can be replaced without effecting the ground loop. As a matter of fact the ground loop is 1/2 the cost and can last well over 50 years.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
garyrich2000 dirt is the answer. All I need is a temp difference for heat transfer..the more dirt entailed the more the load is spread out. Short loops have never worked for anyone consistantly.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
gaucho: Unfortunately these systems have proven they are limited. My experience with these systems result in 50% failures. The construction of the outside loop, getting the oil back, taking care of the copper in the ground varies on ground content, hasn't proven to be consistant. Refrigeration is a touchy subject and moving refrigerant around takes a lot of care. The traditional loop works. It's easy to move water. The saving realized isn't any better than It sounds great but to the masses it is not ready for prime time. I would embrace it otherwise.
Gary Richardson
Gary Richardson
November 8, 2012
I'm a little concerned with the long term saturation performance of these shallower systems. I recall an article was written on underground New York has gradually become warmer over time, which is fine for a heat source, but not for cooling. Perhaps this may become a new issue in future designs i.e. thermal segregation of hot and cold.
Ralph allen
Ralph allen
November 8, 2012
It is called EARTH LINKED systems where the freon is looped under the ground. http://www.youtube.com/watch?v=cBB1oxKRheo
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
It is the heat of the earth and the consistancy of that temp we are looking for. It makes sense if you are using a limited size loop you are limiting the amount of BTU's you are capturing. The loop represents 75% of the BTU's required in the building. One of the benefits of the loop is they are not set lengths. The lengths are a result of the transferability in the ground and load of the building.Believe me I would love to have a less expensive way to install the energy source. If we could remove 50% of the loop expense we would triple output of units. The prob is it has to be workable in every climate in every state.
Ron Tolmie
Ron Tolmie
November 8, 2012
Peter - One (of the many) advantages of the AE City Block system is that its total borehole depth is only about one fifth of that of a GSHP system, which results in a much lower system cost. The implication is that the natural ground heat contribution cannot meet the total annual load but it is enough to handle an unusually cold winter. Moreover, such systems provide backup in the event of emergencies like Hurricane Sandy or grid failures.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 8, 2012
The reason for back up is not because of the energy gained from the source, it is a function of sizing. The biggest difference is you are able to size for the heat side and consider the cooling side. In Airsource heat pumps you must size for the cooling. It is entirely possible to size the unit for the full heating load.
Ron Tolmie
Ron Tolmie
November 8, 2012
AE City Block systems use natural ground heat as an energy reserve. We are so accustomed to using fossil fuels that are purchased as needed that we often forget that a switch to natural renewable sources of energy requires the provision of a backup option to handle unusually cold winters or other unexpected events. See the October issue of http://sustainability-journal.ca for details.
tony penachio
tony penachio
November 6, 2012
There is a new type of ground source hx, a hybrid direct exchange heat exchange system know as the GeoColumn. It is a dx coil housed inside an HDPE containment that i filled with tap water. The entire unit is an off-the-shelf product and i simply inserted in a 23' deep borehole and these hx can be repaired, removed or replaced should the need ever arise. One of the primary intents of the GeoColumn technology is to allow installs in urban or suburban settings as only 16' long by 10' wide of lateral ground area is required per ton.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 5, 2012
ANgus your speaking of a direct exchange system. They have been around a long time. Their loop can only bee used for the unit it is installed with. When you replace that unit you must reinstall another loop. There are also issues with the copper being burried.
With GSHP's the polyethelene will last many units. It is a 1x expense. Gary Rich, that singular loop for multiple units is a good idea. I have used that before.
Just so you know there are more ways than verticle to install the loop. They all(properly installed) are as efficient as each other.
Gary Richardson
Gary Richardson
November 4, 2012
@Guacho
Have you seen any good videos on the installation process or comparison of results?
Ralph allen
Ralph allen
November 4, 2012
There are new ways to install ground loop systems. One of the most efficient is the where the coolant is directly fed into copper ground loops instead of using a heat exchanger. This avoids the energy cost of the pumps needed for heat exchangers. The new system drills holes from a single point in a star pattern at 45 degrees down with 3" holes at about 100 foot depth using copper pipe. The savings is on the drill cost and the grouting for 3" holes instead of 6" holes. This is best for retrofits since the yard is not torn up by placing the drilling equipment (holes) in several locations.
This is a new technique and even though it should cost about 1/3 less for the system the installers are charging 20% more since the system is more efficient. This type of price gouging is common in the HVAC industry where a more efficient heat pump may cost the installer 500 dollars more he will bill the customer 2000 dollars more.
If one were industrious he could start a company with the new drilling systems and undercut the competition at the same time increasing the number of cost effective systems installed. It is a good way of making 250K a years while helping the environment.
Angus Campbell
Angus Campbell
November 3, 2012
@Garyrich: Yes it is interesting indeed. I live in St. John's Nl and there is a plan to heat a building with a tidal exchange system I believe it is being built now. Combining solar with Geothermal makes a lo of sense especially if it can be stored for long periods. I wonder if it would be practical for snow clearing purposes?
Gary Richardson
Gary Richardson
November 3, 2012
@Angus There is a development up in Alberta that uses geothermal hybridized with solar thermal for heat storage with success. http://www.dlsc.ca/ Copy and paste the address above to see the official website. The opposite can be done in warmer climates to store cold by generating solar cooling but I haven't seen it done yet. However, the city of Toronto has utilized Lake Erie for it's cooling needs and is funded by public means. http://en.wikipedia.org/wiki/Enwave http://www.toronto.ca/environment/initiatives/cooling.htm This way cooling is owned by the citizens of Toronto.
Angus Campbell
Angus Campbell
November 3, 2012
Here's my suggestion to reduce costs. In a new housing development, encourage (or require)contractors to drill the deep holes while site preparation is under way. A single large diameter hole is drilled at the corner between every 4 lots and the four houses bordering this corner would all tap into the single hole for their Geothermal systems. The costs would be built into the price of the lots in much the same way roads, side walks and utilities are. This way, when a person mortgages a house, the costs of the permanent drilling would be spread over a 25 year period and separate from the depreciating costs of the mechanical units. The same sort of approach could be applied to existing developments providing there is agreement between the four lot owners.
PETER PRYDYBASZ
PETER PRYDYBASZ
November 2, 2012
The energy source is just that an energy source... What other utility offers a pre-buy on the source of energy in other heating systems. Once the commitment of the loop is made ..the homeowner never has to invest in a source again no matter how many heat pumps that are used in the life of the home. Its the best investment right now. If you put 10k in the bank what do you have at the end of the year. If you put 10k in your loop you will immediately save money on your electric bill. So if you can save 50 bucks a month thats 6% on your money....FOREVER!
John Turley
John Turley
November 2, 2012
Utility involvement in the ground source industry will make the choice of this technology a "no brainier" for both homes and businesses, and create many jobs in the industry.
Gary Richardson
Gary Richardson
November 1, 2012
Sounds like free money for the utilities.
A municipal bond to cover costs with payback imposed through utility usage toll fee seems a better route.
Such measure would place focus on large users of energy to cut usage.
V. Bruce Stenswick
V. Bruce Stenswick
October 31, 2012
My suggestion to get the cost down is to use a PACE mechanism to fund the loop field.

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Bruce Dorminey

Bruce Dorminey

Bruce Dorminey is an award-winning science journalist who is a former Hong Kong bureau chief for Aviation Week & Space Technology magazine and a former Paris-based technology correspondent for the Financial Times newspaper. However, he...
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