English 421Y: Technical Writing Online

Purpose: To better understand the cost and benefits of the vertical loop geothermal systems
Unanswered Questions: None
Source(s): http://www.in.gov/oed/files/GHPProgramreport.pdf
http://www.dsireusa.org/
http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/my...
http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/my...

In my last research blog, I wrote that I was interested in finding out what costs and benefits of installing a vertical loop geothermal system were. I will first focus on the financial costs of installing the system and then focus on the financial benefits.

According to the Energy Savers website, the initial installation costs of geothermal heat pump are roughly $7,500 for a 3 ton system (the average size for a residential building). However according to the Indiana Office of Energy and Defense Development, the cost of installation can be as much as $14,000 for the same size system.

An important consideration of making such a large investment is the return on investment. The Energy Savers website states that a geothermal system can be expected to pay for itself in 2-10 years. However to encourage people to install such systems owners of geothermal systems are eligible for grants, rebates, tax exemptions, tax rebates and loans from the local, state, and federal government. According to Database of State Incentives for Renewables and Efficiency, the state of Indiana offers homeowners of geothermal systems a 20% energy savings tax credit. The federal government offers a tax credit of 30% of the installation cost with no maximum. These financial incentives are important to consider as they help offset the high cost of the installation and open this option up to those who might not be able to afford it otherwise.

Now that I have done considerable research pertaining to vertical loop geothermal systems I am confident that I will be able to provide the necessary information to our customers so that they can make an informed decision.