The Basics of Geothermal
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Geothermal heating (known as Ground Source Heat Pumps, or GSHP’s) at its most basic is just transferring heat energy between the Earth and your home. In the winter when you need to heat, you simply transfer the heat from the earth into your home. In the summer when you need to cool, it is just the opposite; heat is taken from your house, and put back into the earth.
Geothermal systems can be installed basically anywhere, and have no need for natural hot springs or geysers under your house. This system just uses a heat exchanger in the earth to transfer the heat energy.
The United States E.P.A. has called ground source heat pumps "The most energy efficient, environmentally clean and cost effective space conditioning system available.”
How it works

Heating Process
Cooling Process
Water Heating
As a by-product of the natural function of the heat pump, hot water can be produced for the domestic hot water load of the household. Using a “desuperheater” addition to the heat pump, you are able to capture the excess heat from the compressor that may otherwise be lost in the cabinet of the heat pump, and pump it straight into your home’s hot water heater. This helps reduce costs of heating the hot water tank, which can directly save you money.
Ground source heat pumps can also be configured with a dedicated hot water coil for on demand water heating. This double walled heat exchanger differs from a desuperheater in that it operates when there is a “call” for heat from in the domestic water tank.
For most residential applications where there is a lower domestic hot water load the desuperheater is the more economical choice.
In applications where there is a significant domestic water heating loads the dedicated hot water coil can be considered.
Ground Loops
COSTS
What are the Costs associated with Geothermal Systems?
Like most things, the cost of the whole thing is the bottom line deciding factor. But direct initial costs are not the only consideration. Geothermal systems will usually cost more to install initially, but will easily pay themselves off over time just in money saved from inexpensive operation. The typical payback period we are seeing is usually 3-6 years, depending on your situation.
Huge federal and state discounts are available specifically for these systems, and when paired with a renewable energy loan, can potentially cost you no extra money per year to install and heat with a geothermal system, AND pay back the loan. All of that for the same cost of just heating your house with a conventional system. The value added to your home from a renewable heating system is also a great bonus. Geothermal heating is clean, cheap and efficient heating in almost any situation.
What is the energy saving potential of Geothermal Systems?
The operating costs of a geothermal system are roughly 1/3rd of the operating costs of a traditional heating system. So instead of paying $3000 per year to heat your home, you could be paying around $1000.
With the renewable system, you are using ‘free’ energy directly from the earth, and the only operational cost is the electricity needed to transfer that energy from the earth into your home. As soon as a geothermal system is installed, it begins to save a significant amount of money over a conventional HVAC system.
Geothermal Tax Credits
Now is the absolute best time to take advantage of huge tax credits for geothermal heat pumps.
There is currently a 30% federal tax credit towards the installation of a ground source heat pump in a residence. Thats money straight off of your taxes.
There is also many state rebates and incentives for ground source heat pumps, and they can all be found at the DSIRE website: dsireusa.org
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