Optimizing the Residential Geothermal Investment in Massachusetts

MARTIN ORIO – V.P. BUSINESS DEVELOPMENT AT WATER ENERGY DIST., INC.

ADVOCACY CHAIR - NEGPA

Geothermal System Elementsu Mechanicals-Geothermal heat pump equipment cost a little less (ton for ton) than their air-source counterparts-Consider average of $1,800 to $2,200 per ton as average retail machinery cost for Tier III qualifying geo equipment

u Distribution Elements-Heating delivery temps are optimized between 90F to 115F so existing higher temp fossil delivery systems may need to be upsized/augmented for 100% solutions-Cost is otherwise less than traditional fossil as one mechanism both heats and cools

u Earth-coupling-The “Additional cost” for Geo is the PERMANENT SOLAR ENERGY SUPPLY that a well or loopfield represents in the investment. Prices and resulting performance/longevity can vary wildly, however a proper earth connection can cost from $2,200 to $4,400 per ton of equipment

MassCEC’s Residential Geothermal Heating Program

u Residential Program Manual -http://images.masscec.com/uploads/programdocs/Residential%20GSHP%20Program%20Manual%2008-12-2015_0.pdf

u Participation Agreement -http://images.masscec.com/uploads/programdocs/Residential%20GSHP%20Participation%20Agreement%2011-20-14.pdf

u Installer (Primary) Agreement -http://images.masscec.com/uploads/programdocs/Residential%20GSHP%20Primary%20Installer%20Agreement%2011-20-14.pdf

u Project Application – EXCEL format – (Fill in the blanks) download to your pc

$4,000 to $12,500 rebate per project(Payable to either the homeowner or installer directly)

Residential Geothermal Program Manual Primary Features & Requirementsu Geothermal Unit(s) must meet or exceed current Estar efficiency tier III

standardsu Completed application including formal Manual J load analysis using

data points identified by MassCEC and DOER must be approved in advance of awarding acceptance letter

u Geothermal load and building side design/application minimum standards must be met. Third party design review of all applications.

u Primary Installer must hold valid business credentials. IGSHPA/formal Geothermal installer credential (AI, CGD) is preferred

u Application is signed by both homeowner and primary installeru Project must be located in town/city served by utility that participates in

the renewable feed-in tariff fund administered through the MassCEC

Updated Program

Guidelines due out shortly

Separate MA-DOER“Renewable Thermal” program is available for municipalities that don’t participate

Best candidates - MassCEC Residential Geothermal Rebate Program Program

u New Construction AND Retrofit Geothermal-Well built/insulated building-Intentions for 100% capacity Geothermal central heating and cooling-Larger building/loads = highest $$$ savings -Lack of availability of other low cost heating fuels (eg: Natural Gas)-Indoor Air Quality preferences/concerns-Longest Life-Cycle/*Highest ROI and IRR (investment) Intentions-Longer colder winters-Focus on protection (hedge) against future energy price increases for heating/cooling-Focus on maximizing carbon reduction and maximum operating efficiency

*Forbes Magazine identified Geothermal as among the highest and most predictable return compared with ANY investment

New Construction Metrics – 4 ton System(Assuming typical 2,000 square foot home)u Complete Geothermal System$7,500 to $12,00 per ton. So call average $9,750 X 4 tons = $39,000Subtract *30% federal tax credit ($11,700)Apply MassCEC rebate (based on tonnage and unit efficiency)

Between $2k and 2.5k/ton up to 5 tons. So call average $2,250 x4 → ($9,000)

Estimated first cost for *100% heating and cooling solutionafter rebates and credits → $18,300

* Comparative heating and cooling system investment costs of other systems that are not equally sized to serve 100% of the building load should be considered accordingly

Less than descent quality

traditional systems! AND

50 to 85% savings EVERY

YEAR!

Retrofit Metrics – 4 ton Systemu Retrofit Residential GeothermalPROS-Existing/reusable assets? Ductwork, low-temp radiant floor, Fan Coils, Artesian Well, Pond or Lake, etc.-Older traditional systems in need of upgrade regardless of Geo choice-Intentions for dual fuel or partial Geothermal heating and cooling through existing assets-Focus on long term results/performance/longevityCONS-High temp existing distribution assets may need to be upsized, or partial (less than 100%) system might be considered-Finished basement ceiling and/or lack of attic access-Finished space that is harder to revisit delivery mechanisms through-No access for well or loopfield on the property-Focus on short term results/performance/longevity

Thank you!

Geothermal  with  ConfidenceMartin@northeastgeo.comDirect 508-242-5696Cell: 508-904-5815