Sample Operating Cost Analysis

To download a PDF file of this entire report click here

This floor plan is representative of the home that was used in this analysis.

Here is some of the design data that was used.

Below is the estimated utility cost assuming a conventional system

Below is the estimated utility cost assuming a geothermal system

It is normal for a new home to come with a conventional HVAC system included in the price of the home. Either that or your builder has an allowance that he or she has included for the installation of your HVAC system.

In this particular example, our builder is giving us credit for the included HVAC system allowance. The cost to have the geothermal system installed in-lieu-of the included HVAC system was around $14,000 above the builder’s allowance. After the 30% federal tax credit the net system cost is around $7,400.

This extra $7,400 will add about $42.04 per month to a 30-year mortgage with an annual interest rate of 5.50% but can save us an average of $300.00 per month.

Wow! That’s like getting paid $258 every month for the privilege of being more comfortable in our home, having a longer warranty, having no on-site fuel storage, no products of combustion (Carbon Monoxide) from our HVAC system, no chimney or flue pipe, reducing our carbon footprint and increasing our home's value

This particular example uses $0.10 per kWh of electricity and $2.34 per gallon of propane.

If we figure a system lifetime of 25-years and a 2% per year fuel cost increase, our Investment analysis looks like this:

• Net Investment Amount: $7,400.00
• Savings over System Lifetime of 25 Years: $85,026.79
• Monthly Average Savings: $283.42
• Break-Even Years (At Zero Interest): 2.7 Years
• Return on Investment (ROI): 37.85%

Even if our system costs us $18,000 more than our allowance, our net monthly savings is still $218.64

$20,000 more than our allowance? Our net monthly savings is still $207.29