Payback

Discussion in 'Quotes and Proposals' started by dgaugler, Jun 28, 2012.

  1. dgaugler

    dgaugler New Member

    I got two estimates from local installers. For a 2500 sqft house, new construction with vertical loops. Both companies offered to do a comparison with natural gas for the payback. One shows me recooping the extra cost of the Geo system in 4 years saving a $100+ a month the other one said I'll never get payback, because I'll only save a couple dollars per month.

    I'm officially confused. Should I get another opinion?
     
  2. Calladrilling

    Calladrilling Member Industry Professional Forum Leader

    Yes get new estimates!
    With the rebates, and a well designed system you should get pay back in a few years like contractor #1 suggested.
     
  3. Calladrilling

    Calladrilling Member Industry Professional Forum Leader

    Oh by the way Welcome!
    There are quite a few very knowledgable people on this site that can help you with your HVAC questions, I personally am just involved with the ground loop side of things!
    I will leave the indoor work And suggestions to the pro's of that field.
     
  4. dgaugler

    dgaugler New Member

    I'm also wondering if a horizontal loop is possible? Both installers were assuming verticle loops. The backyard is about 68' x 77'. I'm in Montana and the average temp of the soil should be 48 degrees. It gets pretty cold here December, January and February basically have highs in the low thirties and lows in the single digits. We typically get a few days a year that get down to around -20 degrees. I'm guessing I'll need at least a 3 ton system with some aux. One of the estimates, estimated our heat load at 44.5 kBtu/hr.
     
  5. docjenser

    docjenser Well-Known Member Industry Professional Forum Leader

    Post the payback calculations here so we can have a look at it....
     
  6. Altnrgy

    Altnrgy Member

    Since you've got natural gas then a saving a "couple of dollars a month" could be about right. Of course this depends on if you live in a heating or cooling dominated climate. The price of NG is at an all time low now and thanks to all the fracking going on will likely continue to stay low for many years.

    So if you live in a heating dominated climate (like Minnesota) then switching from NG to GEO probably doesn't make financial sense at all.

    But if you live in a cooling dominated climate then it could be a different story. Especially if your electricity is above the national average of ~10 cents per kWh, your existing AC is over 10 yrs old and you're eligible for incentives/rebates other than just the 30% federal tax credit.

    So yes get another opinion. Check into what both your gas and electric utilities offer for residential energy audits/advice. You might have to make a few phone calls and do a little digging to get to the right person but you really should spend a few hours so you know what you're getting into. They will be able to quickly plug your scenario in their calculator(s) and give you some reasonable accurate results.

    By the way I have GEO on my house and I love it but it only made financial sense because I got a 50% rebate from the State and then just it barely. We also had some major comfort issues we resolved at the same time so payback was actually secondary to me.

    So shop wisely and get some advice from someone not trying to sell you something.
     
  7. AMI Contracting

    AMI Contracting A nice Van Morrison song Industry Professional Forum Leader

    We enjoy in expensive energy in my area, and yes nat gas is usually a no brainer in a retrofit situation.
    However in a new build or gut and remodel where all the duct work (or radiant) is purchased at the same time, due to the 30% tax credit, geo pays back inside of 10 years.
     

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