The GREEN in Geothermal Heat Pumps

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The GREEN in Geothermal Heat Pumps. Shelton Cartwright, Jr. WaterFurnace International Territory Manager Virginia Maryland and Washington, DC. Cost Savings Cannot Be Ignored. This Mornings Session. Snapshot of WaterFurnace International - PowerPoint PPT Presentation


<ul><li><p>THE GREEN IN GEOTHERMAL HEAT PUMPSShelton Cartwright, Jr.WaterFurnace InternationalTerritory Manager Virginia Maryland and Washington, DC</p></li><li><p>THIS MORNINGS SESSIONSnapshot of WaterFurnace InternationalQuick overview of geothermal technology and historyImportant growth trends including incentives from Federal, State and Local governments</p></li><li><p>THIS MORNINGS SESSIONCost Comparisons using a suggested professional approach by an HVAC contractorNew Home ExampleExisting Home ExampleLive Examples using the WaterFurnace Online Savings Calculator</p></li><li><p>ABOUT WATERFURNACEEstablished in 1983Over 300,000 geothermal units installed$129 Million (US) in Sales for 2009Traded on the Toronto Stock Exchange (WFI)$26.11 (Canadian) Per Share on March 19, 2010Headquartered in Ft. Wayne, IN115,000 SF Headquarter/FactoryServed by a geothermal pond loop system</p></li><li><p>ABOUT WATERFURNACEStaff of 5 TrainersGeothermal Pipe &amp; DesignService and InstallationOne Day Refresher Training</p></li><li><p>GEOTHERMAL OVERVIEWHeating CycleHeat is extracted from the earth and moved inside the house with water pumps, then transferred to the air coil via the heat exchanger, compressor and refrigerant cycle.The optional desuperheater takes heat from the unit and uses it to heat water inside a domestic water heater tank.</p></li><li><p>GEOTHERMAL OVERVIEWCooling CycleThe optional desuperheater takes excess heat from the unit and uses it to heat water inside a domestic water heater tank increasing the overall efficiency.Heat is extracted from the house and via the air coil and refrigerant cycle, transferred to water inside the heat exchanger then moved with water pumps and rejected into the soil outside.</p></li><li><p>GEOTHERMAL OVERVIEWTypes of Geothermal UnitsWater to AirWater to WaterDual Capacity Compressors, Scroll CompressorsVertical, Horizontal Package and Split</p></li><li><p>GEOTHERMAL OVERVIEWTypes of LoopsHorizontalVerticalPondOpen Boiler</p></li><li><p>HISTORY OF GEOTHERMALNo longer a science projectFirst GHP 1904 in Lardarello, Italy1948 Ohio State Professor develops the first GHP for use in a residence1978 First modern GHP home in Oklahoma1982 First commercial closed loop system </p></li><li><p>GROWTH TRENDS5 Year Industry Unit Shipments* (000)*Source: AHRI </p><p>20052006200720082009Change 2005/2009A/C 6,4714,9514,5083,9683,515-46%Gas3,5123,1972,7822,2802,174-38%HP2,1372,1181,8991,8561,642-23%Oil11193845556-49%Geo3343476885158%</p></li><li><p>FACTORS FOR GROWTHGreater perceived comfortLower operating costs2007-2008 Oil and LP fuels price jumpHigher electric utility costsConsumer acceptance as mainstream technology</p></li><li><p>FACTORS FOR GROWTHDemand side programs from electric utilitiesState &amp; Local incentivesFederal tax stimulus </p></li><li><p>FEDERAL TAX CREDITHomeowners:30% of the entire cost of the project.System must be placed in service between January 1, 2009 and December 31, 2016.The home does not need to be the taxpayers principal residence.Equipment must be Energy Star Rated.</p><p>Commercial:10% of total costInstalled between 10/3/2008 and 12/31/2016Building located in the U.S.Equipment must be Energy Star Rated.</p></li><li><p>MARYLAND EXAMPLEState :Grant $500 per ton Maximum $3,000 for Residential.Grant $500 per ton Maximum $10,000 for Commercial.</p><p>Howard County:Property Tax Incentive.50% of eligible costsMaximum $5,000.Excess may be carried forward for 2 years.</p><p>Other Maryland counties also have incentives for geothermal.</p><p></p></li><li><p>COST COMPARISONS</p></li><li><p>EER IS HIGHER THAN SEER21 SEER 15 EER or of a 30 EER Geothermal Heat Pump</p></li><li><p>BIN CAPACITY GEOTHERMAL VS. ENERGY STAR HEAT PUMPBack-up heat neededTypical geothermal systems balance point is at lower temperatures than with conventional heat pumps</p><p>Chart1</p><p>5622570026335</p><p>41152461324479</p><p>76682353322155</p><p>112212245919116</p><p>147732139217076</p><p>183262072615398</p><p>218792187913983</p><p>254312543113084</p><p>289842710411658</p><p>325372710410160</p><p>Back-up heat needed</p><p>BTUH Load</p><p>Geothermal</p><p>16 SEER HP</p><p>Sheet1</p><p>Temperature BinBTUH LoadGeothermal16 SEER HP</p><p>575622570026335</p><p>5241152461324479</p><p>4776682353322155</p><p>42112212245919116</p><p>37147732139217076</p><p>32183262072615398</p><p>27218792187913983</p><p>22254312543113084</p><p>17289842710411658</p><p>12325372710410160</p><p>To resize chart data range, drag lower right corner of range.</p></li><li><p>WINTER BIN HEATING HOURSTypical geothermal systems electric back-up operates for fewer hours than conventional heat pumps</p><p>Chart1</p><p>7595757</p><p>7105252</p><p>6954747</p><p>6884242</p><p>6173737</p><p>49749732</p><p>26926927</p><p>10810822</p><p>585858</p><p>131313</p><p>Hours</p><p>HP Back-up</p><p>Geo Back-up</p><p>Sheet1</p><p>HoursHP Back-upGeo Back-up</p><p>577590</p><p>5271000</p><p>4769500</p><p>4268800</p><p>3761700</p><p>32497497</p><p>27269269</p><p>22108108</p><p>17585858</p><p>12131313</p></li><li><p>TOOLS FOR CALCULATING ENERGY COSTSManual J To Calculate Heating and Cooling LoadsWaterFurnace Savings Calculator Allows homeowners to calculate savings based on their homes square footage and weather zoneUnique software available to WaterFurnace Dealers:Gizmo calculates savings based on unit(s) selectedGeoLink Design StudioHelps dealer select the correct unit for the given loadsCalculates needed trench or boreCalculates projected energy costsCalculates cost comparisonsNote: Other geothermal manufacturers have software similar to GeoLink Design Studio available for HVAC contractors.</p></li><li><p>ENERGY COSTS (VIRGINIA)Source: U.S. Energy Information Administration</p><p>FuelRate/UnitPeriodNumber 2 Heating Oil$2.48/gallonDecember 2009LP Gas$2.39/gallonNovember 2009Residential Natural Gas$12.52/tcfDecember 2009Residential Electric$0.1012/kwhrDecember 2009</p></li><li><p>HOMEOWNER COSTS30 Year Fixed Mortgage 5.02%Equity Loan 5.25%5 year CD 3.2%Installed Cost of Geothermal (2 to 6 tons single unit system)New $18,000 to $26,000 and up plus loopRetrofit $15,000 to $20,000 and up plus loopLoop $3,400 to $14,000 and upNOTE: Costs based on the Virginia market. Costs will differ in other states and regions. In addition, costs will differ according to soil conditions and home design.</p></li><li><p>NEW HOME EXAMPLE</p><p>Two story homeTwo 3-ton Geothermal Heat PumpsNorthern Virginia</p><p>Actual example home not pictured</p></li><li><p>Cash FlowAnalysisExplain the benefits early in the decision cycle.Note: Zero escalation rate yields conservative results </p></li><li><p>OPERATING COSTSAnnual Savings Geo vs. 16 Seer = $936Geo vs. Gas = $894</p><p>Note: Calculated from GeoLink Software and Manual J data.</p><p>SystemHeatingCooling Hot WaterTotal AnnualGeothermal$834$389$449$1,67216 SEER$1,194$519$895$2,608Natural Gas$1,465$516$585$2,566</p></li><li><p>ENERGY STAR RATED SYSTEMS GEOTHERMAL VS. CONVENTIONAL$1,670$2,608$2,566$4,017$4,749Northern Virginia Weather Zone, Gas Water Heaters are Power Vented2 Story Home with two 3-ton Geothermal Heat Pumps</p><p>Chart1</p><p>832389449</p><p>1194519895</p><p>1465516585</p><p>2616516885</p><p>30205161213</p><p>Heat</p><p>Cool</p><p>Hot Water</p><p>Sheet1</p><p>HeatCoolHot Water</p><p>Geothermal8323894491670</p><p>Heat Pump11945198952608</p><p>Natural Gas14655165852566</p><p>Oil26165168854017</p><p>LP Gas302051612134749</p><p>To resize chart data range, drag lower right corner of range.</p></li><li><p>RETRO-FIT EXAMPLEMy House Charlottesville, VA3 Story Townhouse20 Years Old1,600 SF10 SEER Heat PumpReplace old HP with 3-ton Geothermal Heat PumpWhat a winter! Sick of snow, now that spring is here I have to repair my HVAC, or replace it with a geothermal system.</p></li><li><p>SAVINGS CALCULATOR</p></li><li><p>SAVINGS CALCULATOR</p></li><li><p>SAVINGS CALCULATOR</p></li><li><p>DEALER COMFORT SPECIALIST VISITS THE HOMEAssesses property for most practical type of loop.Measures the home for a heat loss/gain. Review Expected Energy Savings with the homeowner.</p></li><li><p>Life-Cycle AnalysisNote: Zero escalation rate yields conservative results </p></li><li><p>Cash FlowAnalysisYear-6 forward, $105.41 positive cash flow per monthNote: Zero escalation rate yields conservative results </p></li><li><p>OPERATING COSTSAnnual Savings Geo vs. Repair= $1,257</p><p>Note: Calculated from GeoLink Software and Manual J data.HVAC Dealer follows up preliminary costs savings after Manual J study.</p><p>SystemHeatingCooling Hot WaterTotal AnnualGeothermal$353$206$369$919Existing$991$594$601$2,176</p></li><li><p>ENERGY STAR RATED SYSTEMS GEOTHERMAL VS. CONVENTIONAL$918$2,186$1,516$1,334Northern Virginia Weather Zone, Gas Water Heaters are Power VentedRetrofit Home</p><p>Options:30 EER GeothermalExisting 10 SEERNew 16 SEER HP New 95% AFUE Gas Furnace with 16 SEER AC *Not Energy Star Rated</p><p>Chart1</p><p>343206369</p><p>991594601</p><p>630285601</p><p>697288349</p><p>Heat</p><p>Cool</p><p>Hot Water</p><p>Sheet1</p><p>HeatCoolHot Water</p><p>Geothermal343206369918</p><p>Existing HP*9915946012186</p><p>New HP6302856011516</p><p>Gas Option6972883491334</p><p>To resize chart data range, drag lower right corner of range.</p></li><li><p>NOTES ABOUT ESTIMATESEmphasize the savings ratios not the final amounts.The GeoLink Studio and other similar software uses algorithms based upon the latest ASHRAE engineering methods, 20-year average weather data, and a system installed according to the manufacturers guidelines.</p></li><li><p>NOTES ABOUT ESTIMATESLifestyles can impact energy usage as much as 30% for similar sized homes.Retired man leaves his home 1 to 2 weeks per month and is left disappointed with his actual savings.Some people just dont take enough showers.Weather can dramatically increase/decrease bills.</p></li><li><p>WINTER DEGREE DAYS DULLES AIRPORTThis past winter we had a colder December and February, but January was colder last winter.2007-08 was closer to the normal winter.Degree Days</p><p>Chart1</p><p>181344304</p><p>568624457</p><p>818821917</p><p>9111089964</p><p>798754947</p><p>592666Mar</p><p>313334Apr</p><p>204124May</p><p>2423Jun</p><p>1118Jul</p><p>274Aug</p><p>6258Sep</p><p>2007-08</p><p>2008-09</p><p>2009-10 YTD</p><p>Sheet1</p><p>Month2007-082008-092009-10 YTD</p><p>Oct181344304</p><p>Nov568624457</p><p>Dec818821917</p><p>Jan9111089964</p><p>Feb798754947</p><p>Mar592666</p><p>Apr313334</p><p>May204124</p><p>Jun2423</p><p>Jul1118</p><p>Aug274</p><p>Sep6258</p><p>To resize chart data range, drag lower right corner of range.</p></li><li><p>SUMMARYGeothermal systems are no longer science projects and are considered mainstream technologies by potential users.Fuel prices, utility programs, and government incentives have contributed to the adaptation of geothermal technologies.Geothermal system efficiencies are significantly higher compared to conventional HVAC systems.</p></li><li><p>SUMMARYIt is important to train HVAC contractors to understand the impact of lifestyles and weather conditions when communicating energy savings to their prospective customers.HVAC contractors have professionally developed software to carefully project energy savings for their prospective customers.Homeowners enjoy higher ROIs when geothermal systems are picked vs. other choices, even the choice to repair broken HVAC equipment.</p></li><li><p>LIVE EXAMPLES</p></li><li><p>QUESTIONS</p></li></ul>