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That massive spike of 50c/kWh at the left looks tiny compared to today even though that's already insanely expensive
this post was submitted on 05 Jan 2024
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Mildly Infuriating
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In colder areas like that the heat pumps are usually ground source so the ambient air temperature doesn't change the performance much.
Have you actually priced such systems and the payback time vs heat pumps vs petroleum sourced heat?
I know one person who chose a mix of ground heat pump, LP, and wood heat. He told me that it only had a reasonable payback was because he was building a new home and the extra cost could be tagged to the total build cost. Making it cheaper than a retro fit. He said it added another $25,000 to the cost of his new home. But in fairness, he does enjoy it.
I only do the refrigeration side of things and I don't do residential stuff so I'm not sure on exact pricing. Pricing will also vary greatly depending on the exact area. For example in my area we have a high enough ground water level that open loop geothermal is easy and that is the cheapest/easiest method of geothermal. The other types will also vary in cost depending on soil type and moisture content because that will partially dictate how big of a ground loop you need. The amount of area you have for a ground loop will also be a big factor because if you don't have enough yard area for a horizontal loop then you need to use a vertical loop which can be heniously expensive.
As far as payback goes they are far more expensive to install regardless of the type but the ground loop (assuming closed loop system) can easily last over 50 years and that is the most expensive part of the whole system by a large margin. Out of the $25,000 you mentioned I would bet that about $20,000 of that was just for the ground loop. The rest of the system is going to be more durable as well due to not being outdoors. The expected lifespan of the other components is 20 years and they can easily last far longer than that. So the energy savings is only part of the cost savings. The other part is that geothermal heat pumps need practically no maintenance and break down far more rarely than any other conventional heating or cooling solution. With how long they last and how durable they are a geothermal heat pump can probably pay itself off just with avoided service calls.
The biggest issue is if you don't have the money to buy it, it matters very little about the efficiency and how long it lasts. You still need to pay for it. He could justify the expense because we are a very rural area and land is cheap and tagging it to a new build brings down the interest costs. This is often makes geo-thermal a non-starter for most - as you point out. He even admits he wouldn't have done it under any other circumstance.