Selling a geothermal heating/cooling system to a cost conscious customer can be a challenge. Contractor John Bosman, Bostech Mechanical Ltd., Moorefield, Ont. has done about 350 installations in the past 10 years. Typically, for a residential home, the cost to the customer is $20,000 for a system with a horizontal loop and $25,000 with a vertical loop, he reports. However, when one considers that the customers oil or natural gas bill will be reduced to zero and their cooling costs can be halved, the price doesnt look so bad. Government and utility energy efficiency programs can also help reduce the burden. And it is not as big a portion of a house price as it was. When homes were selling for $100,000 or less, putting in a $25,000 HVAC system didnt make sense. With homes in many regions now in the $300-$400,000 range, customers are more likely to take the price in stride, says Hatherton. People dont look at you like you are from another planet anymore. In new construction, where the customer is going to have to buy an HVAC system anyway, adding an extra $10-15,000 to the mortgage and being protected from rising gas/oil prices forever can be extremely attractive. Financing options can be a big help in a retrofit. Last year Next Energy formed a partnership with Waterloo North Hydro an electrical utility serving Waterloo, Ont. and area that allows the homeowner to finance the system on their electricity bill over a 20-year term. Where the geothermal system replaces a propane, oil or electric system, the homeowner will see noticeable savings, notes Hatherton. At current natural gas prices, its more likely to be a break-even proposition. Bosman notes that it is important to give the customer accurate information. One of his first steps is to do an accurate heat loss on the home and then an accurate comparison between the cost of heating with the existing system versus geothermal. Manufacturers usually provide charts to help calculate this. Sometimes the payback, particularly in a retrofit where numerous upgrades to existing systems have to be made, will simply end up too expensive for the customer, says Mitchell. On the other hand, adds Marco, many geothermal customers are committed to a green solution, regardless of the price. They are looking to have something thats green, thats going to save them money and they are looking to have a more comfortable system than they have now.
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