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Help make sure Congress doesn't overlook the most affordable energy-saving technology for homeowners


Word is that the first policy priorities of the Obama administration this spring will be economic recovery and alternative energy.  With that in mind, I'd like to ask my fellow blog-geeks for an assist in contacting their congressional representatives to make sure alternative energy plans don't overlook the following.

One of my personal hobby horses, as a remodel contractor, is green building systems. The technology that most interests me are geo-thermal (or ground-assist) heat pumps. These systems are appropriate for most parts of the country and offer the greatest energy savings and carbon reductions per dollar spent of any existing home energy technology. A geo-thermal heat pump uses 35 - 65% less energy for heating and cooling than a traditional furnace/ac or heat pump system. The biggest drawback is initial cost - the systems cost about double what a traditional furnace/ac unit or heat pump costs, mostly due to the need to drill or trench for the ground loop. Under the energy conservation tax incentives that expired in 2007, you would have received a measly $350 for installing one of these systems (with your additional cost being in the range of $5000 - $7500) - in other words, no real incentive at all. I've scoured the package passed by Congress recently, and could find no mention of tax credits or deductions for these systems. Yet they are the most affordable energy-reducing technology available to homeowners. A solar system that would reduce the energy you draw from the grid by a similar amount would cost $20,000 or more.
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So I need help from all you blog geeks to impress upon your members of Congress the need to not overlook this technology, which is more in reach for most of us than anything else out there right now. I suspect this gets overlooked because it's not as "sexy" as solar, wind, or bio-fuel solutions - but consider: something like 15 - 20% of the nation's energy usage goes to residential heating and cooling. Systems that use half as much energy make sense no matter how our energy is being produced. When we make the switch over to solar and wind and other types of renewable energy generation, having these systems in place will help whatever energy we produce from renewable sources go that much further.
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So, for those of you who aren't so bored by this wonkery that you've already stopped reading, the points to make are: biggest energy & dollar savings and carbon reductions per dollar spent, most accessable technology currently available for homeowners, time to recoup additional initial costs 5 years or less (at which point anyone using this system will have more money in their pockets - which is good for the overall economy - compare to the 20 years or more needed to recoup cost of home solar, by which time the equipment is worn out and needs replacement), carbon emissions reductions continue after initial costs are recouped, and the need for substantial tax credits/deductions or even low-or-no-interest loans to offset additional costs for installing the systems so more people can afford them.  What is needed are tax credits/deductions that would offset at least half of the additional cost of the systems - so anyone wanting to upgrade would still have to spend some $2000 - $3500 more, but could recoup that expense in savings on energy bills in 2 or 3 years.  For many people, this would bring the cost down enough that it would be within reach - at this level, if you had to finance the extra expense for one of these systems, your monthly energy savings alone would cover the payment until it was paid off.

So, can I get an assist?  I've already written my rep and senators, as well as the Obama team.  Hearing from other folks would help make sure this important technology doesn't get left out of the mix.


14 Comments

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Sounds like a good idea. Hopefully more green tax credits will be approved by the new gov. Also hope the economy improves so we can afford the initial cost. Some states and cities offer credits too.

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Er...the geo-thermal credt still applies...

All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit of 30% of the cost up to $2,000. The unit must have been placed into service between Jan 1, 2008 and Dec 31, 2016.

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stlounick - is that a part of the recent energy incentive package passed by Congress? If so, I completely missed it in my reading. Could you point me in the right direction for this? I've not even gotten this information from any of the manufacturers. Thanks for the tip - more info, please!

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Aren't heat pumps just "air conditioners" running forward or backwards using grid power to pump heat? And isn't "geo-thermal" a lie? And isn't it deceptive to compare heat pump capital costs to photovoltaic capital costs (you mention drawing power from the grid)? Why not compare to passive green design costs or solar hot water collectors instead?

I like heat pumps for some applications, but your article really turned me off. :(

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Dear God in Heaven, thank you.... another heat pump fiend!

Jenn, beyond incentives, the "Infrastructure" push by Obama is also opening the door for heat pumps to break through. Installed individually, HP's find it brutal to beat gas furnaces since gas can hide its ongoing fuel bills, and have a lower upfront sticker price - partly because of economies of scale.

We're finding that putting in HP systems, not as a one-off, but as an Infrastructure that can serve hundreds of homes at once, offers incredible economics. (And this in the world's coldest large city.) We've got developers sinking 6-8 wells, connecting them with loops, then running the heat into 450 homes in 15 apartment buildings. Average, all-in costs of

At present, we write off power plants, pipelines, transmission lines etc. as capital spending or "infrastructure," yet even though HP's last 20-40 years, and provide the same service - they aren't counted because they're distributed across people's lawns & yards. They should be included as capital infrastructure, especially since you can walk into any major city & put in HP systems that will take public housing, low-income apartment buildings, university residences, etc. OFF fossil fuel, provide price stability, create local jobs & be drawing on solar energy stored in the ground.

So Amen to your Incentives pitch for individual installations, and maybe it could help to add an Infrastructure pitch for systems serving large numbers of homes to your approach.

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eds - sorry you're "turned off". Apparently you don't understand the technology, which is: it's much more efficient to move heat than it is to create it through burning fuel or heating an electric element. As for "geo-thermal" being a "lie", perhaps you missed the reference to "ground assist". "Geo-thermal" is the industry term for "ground assist" heat pumps, and refers to the fact that the systems use the heat ("thermal") of the earth ("geo") as the heat source/heat sink.

I'm not sure I get your point about photovoltaics - are you proposing using those to generate heat? If so, see my first point above about moving heat being more efficient than creating heat. The most efficient fuel-burning heater can reach efficiencies of around 95%, but a geothermal heat pump can move up to 4 units of heat for every unit of electricity required to run the system - that's an efficiency of 400%. Electric heat, regardless of how the electricity was generated, is the least efficient way to create heat. As for passive green design, it can help...but you aren't going to get a structure in a cold climate up to comfortable levels of warmth with passive solar capture alone, and the same goes for cooling structures in hot climates.

Certainly there's nothing wrong with solar hot water heaters, but water heaters don't consume 15 - 20% of the energy we use in the country, so you're talking a much more minimal impact there...though every bit helps. I'll add as an aside that geo-thermal heat pumps coupled to a desuperheater will provide 100% of water heating needs during warm months, so that's an additional benefit.

Overall, I think you really missed the point, which I thought I had made fairly clear, but I'll try again: any system that requires 35 - 65% less energy for heating and cooling is a good thing, regardless of how the energy to operate the system is produced. For all those solar energy fans out there, it means that the size of the solar collection system you would have to install would only need to be half as large, since the main energy consumer in the house requires much less energy to operate.

One last note - a thanks to stlounick - I was right in that there wasn't anything in the way of credits for these systems in the energy bill passed this year; but thanks to stlounick, I've learned that this got slipped into the bailout bill which passed about a month ago. This is probably why none of my HVAC contractors knew anything about it a few months ago - because it hadn't yet been passed! So yes, there is a $2000 tax credit (not deduction but credit) that comes off the top of your total tax bill if you install one of these systems. That helps...but for widest adoption of this technology, the credit should be a bit higher, in the $3500 range, which would allow homeowners to fully recoup the extra expense within 2 - 3 years.

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Please.

Whatever you do don't -- I repeat don't -- write your Congressperson requesting one more tax dodge.

If you are concerned about global warming or the nation's dependence upon foreign oil, write that Congressperson and demand the imposition of a substantial carbon tax.

Thereafter, the market will take care of the problem of sorting out the most economical and efficient uses of energy without the "helpfulness" of special interest pleaders.

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The market. As in energy. As in, electricity. As in, efficiency. As in, vehicles. As in pipelines, nuclear plants, transmission, oilsands.

Please. Return head to cradle. Resume dream. Clearly, this energy dream is far more pleasant than anything seen on Earth in recent decades. Will awaken you when energy market is sighted.

Promise.

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I fail to see how jacking the price of heating oil/natural gas on people who can't afford it now will encourage faster adoption of these types of energy-saving systems, given that they'll have even less money in their pockets to invest in them. Maybe after the heat is shut off for a few winters because they can't afford it, they can save the money they would have used for keeping warm for the new systems? Because that's how the market sorts this types of things out, you know.

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You know, the perfect is a real serial killer, having left a long trail of goods in shallow graves by the roadside.
And we're not a single fucking inch closer to reducing carbon emissions, except as a consequence of a crashing economy.

Ellen, do you work for the American Petroleum Institute?

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I have had this disagreement for a while with a "green building designer/contractor." In a very narrow set of circumstances, ground-source heat pumps make sense in a residential remodel, but for the most part, however, they are a lousy investment (high initial cost, specialized equipment required, and they don't necessarily lock in the energy savings). I would be the last person to lobby congress to subsidize the heat pump retrofits.

In terms of the retrofit market, we should skew the market to provide envelope improvements and duct sealing improvements, which have a far greater impact, at lower capital and embodied costs while creating a greater number of American jobs. Plus there are accompanying health benefits by reducing mold and airborne toxins in the home. Any subsidy should be limited to multifamily homes and single family homes under 3000 SF.

The fundamental driver of our wasteful residential energy (and transportation energy) consumption is our reliance on sprawling development which generates traffic and discourages infrastructure investments. An attached small urban rowhouse or condo uses between 1/4 and 1/3 the amount of energy (combined transport and space conditioning) of a large suburban detached residence. HVAC equipment is almost irrelevant in the argument.

Also that 400% efficiency doesn't compare apples to apples. One should compare source energy to source energy and look at time of day load factors and regional differences in heating and cooling demand. I would say that a ground source heat pump in a mild climate like Seattle (with a %400 coefficient of performance) that replaces an efficient natural gas furnace (90% AFUE) might result in a similar amount of carbon emissions from its operation. (35% electrical generation efficiency, with some consideration for the hydropower source of the electricity, but you have to discount that because we would otherwise offset coal fired plants in CA or MT, so we're back at 35%), plus 10% transmission losses is down to about 32%, so the that 400% efficiency becomes 128%, or about 38% better than the gas furnace. However then you have to add the seasonal adjustment. Most Seattle homes don't have air conditioning and adding a heat pump would simply generate addition energy use in the summer, likely discounting the efficiency savings. Then we add the embodied energy of the heatpump manufacture, the installation carbon budget and we are very very close to where we started.

However, equipment subsidies are great for making industry a bunch of money while not accomplishing anything important.

Petition your congress critters for green jobs and sensible land use controls and actual save the planet, stimulate the economy, and make our cities better places to live.

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I'm a big fan of in-fill & of efficiency/envelope improvements, jkoteen, but the math on the heat pumps is kinda unfair. You take a gas furnace at its operating efficiency, but then take the heat pump & start subtracting %'s for the whole lifecycle - while the gas unit loses none. 'Fair' would be to take off the whole gas lifecycle, the pipelines & massive compressors, the processing & gas wells, drilling, etc.

Also, discounting the use of hydro-electricity (or wind or solar) because otherwise it could "offset" coal is not really on. Basically, this means there is never any argument for actually using electricity, even if from wind or solar, and even where the end-use makes sense - because there's always some other state burning coal.

Overall, I guess I think the war between the "efficiency" people & the "on-site renewables" people is damaging both causes. I'm for max'ing efficiency, adding some new renewables, and setting the stage for PV or whatever to take us all the way home.

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Why is the cost to run the system still so high compared to a conventional system? Is it the circulation pump?

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The cost to run the system is low compared to a conventional system - anywhere from 35% - 65% lower. What costs more is the initial cost of installation, and that's due to the need to drill one or more ground wells, or trench several hundred feet of ground surface, to lay the ground loop. If you're asking why it costs anywhere from 1/3 to 2/3 as much as a conventional system to operate the system after it's installed, it's because of not only the circulation pump but also the air handling unit which circulates the warm or cool air through the air ducts.

I'm with quinn. I don't understand the "solar or wind or NOTHING!!!" factions. Efficiency should always be a goal. As I said previously, if the major system using energy in your house uses only half as much, you could meet your energy needs with a smaller solar setup or wind setup. In the case of solar, it makes a huge difference, because those systems are expensive - so anything that would allow you to cut the number of panels, etc by 1/3 - 1/2 would result in a huge savings.

As for jkoteen's objections, the comments about geothermal heat pumps being a "lousy investment" are just flat-out wrong. These systems have a longer service life - at least 5 years and sometimes many more - than fuel-burning furnaces and they absolutely do reduce energy usage for heating and cooling. Certainly envelope improvements, duct sealing, etc are good things to pursue as well, but a traditional gas or oil furnace is still going to use 1/3 to 2/3 more energy to produce the same amount of heat. I also agree with quinn that you can't count infrastructure and transmission costs against these systems in your efficiency calculations unless you're going to also count them against your efficiency calculations for traditional systems. As for the assumption that people in Seattle will suddenly beging running AC all summer if these systems are installed, I just find that a specious assumption. I'm sure there are plenty of traditional air-assist heat pumps already in service in Seattle; that doesn't necessarily mean that their owners run them year-round. Not to mention that basing an entire argument against a technology because perhaps it's not the best fit for a particular location entirely ignores the statement that "These systems are appropriate for most parts of the country". Would you disount solar as being of no value because it's of limited use in a place like Seattle where it rains and is overcast so many days per year? And last of all, I love all these folks who assume that just because they point out that urban sprawl is energy-intensive that somehow this is going to change overnight. It isn't. People who own those homes aren't going to suddenly abandon them and until we start building at greater densities, there's no reason to continue using more energy to heat and cool those homes than is necessary.

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