Benefits and Savings

Financial:

Geothermal heat pump systems can reduce a home's annual energy costs by up to 50%. The pie charts below show the breakdown of a home's energy consumption prior to making the switch to geothermal and after making the switch to geothermal.
 
A home still needs the same quantity of heat to maintain thermal comfort, but with a geothermal system, most of this heat comes from a free source - the ground. Overall energy consumption of the home remains the same, but as seen below a significant portion (here it is 59%) of the energy consumed is free!

The drawback of a geothermal system is its initial investment. These systems cost more than conventional oil or gas furnaces and central air conditioners.
 
With the savings in energy bills, however, these systems pay for themselves and still save the customer thousands of dollars over their 25 year lifetime. Their high return on investment, however, is based on the assumption that oil prices will not drop in the next 25 years.
 
Geothermal is encouraged by both the state and federal governments. As a result, several financial incentives exist for geothermal heat pump systems. These include incentives from the CT Clean Energy Fund, a 30% federal tax credit, a $500/ton rebate from CL&P or The United Illuminating Company, and a variety of low interest loans. Furthermore, these systems are exempt from both sales and property tax.

Environmental:

Over the past several decades, carbon dioxide (CO2) emissions have significantly increased, as shown in the graph below. While the specific impacts of this increase are constantly debated, its environmental ramifications are most certainly detrimental. A great benefit of a geothermal heat pump system is that it completely replaces traditional fossil-fueled systems, thus reducing a home's carbon footprint. While it is typically assumed that the transportation sector is the major CO2 emitter, buildings are responsible for 40% of all CO2 emissions in the United States. Reducing the energy consumption of homes is a critical component of the nation's CO2 emission reduction goals.

The only energy input requirement of a geothermal heat pump system is electricity. Therefore, with the addition of solar panels to a home, or a green-power purchase agreement with a utility company, a geothermal system easily becomes 100% green.

For a better idea of what geothermal heat pumps do and what CGH Energy can do for you, please see our informational pamphlet.