Electric vs. Geothermal Heat Pump
Purchasing a geothermal heat pump for your home is both a big decision and a sound investment.
A typical 2200 sq. ft. home will approximately consume 29,900 Kilowatt hours and cost approximately $ 1794.00 annually to heat. With an energy savings of 2/3 the cost of electric heat, the GHP will cost only $ 598.00 a saving of $ 1,196.00 each year the system is in operation. In a capital cost comparison with electric forced air heat, if the heat pump system cost $ 6,600.00 more to initially install, then a simple payback would be 5.5 years.
This payback does not take into consideration the additional value and comfort your home now has as a result of central air conditioning or the additional savings made with the domestic hot water option. The additional monthly payment on an average 25 year mortgage at an interest rate of 7.25% would be approximately $ 47 however the average monthly saving would be $ 100.00.
Therefore the GHP would actually be putting $ 54.00 extra in your pocket each month.
Wood-oil vs. Geothermal Heat Pump
When comparing a GHP system to a wood-oil combination furnace the capital cost of the GHP is less than the wood-oil system when total cost including the associated flue is taken into account. In addition, if wood fuel has to be purchased, the GHP will cost less to operate on a daily basis and is far superior to the wood furnace in the areas of cleanliness, safety, ease of use and automatic operation.