American Air Heating & Air Conditioning, Inc.

561 E. Garden Dr, Unit F • Windsor, CO. 80550
Email: sales@americanairheatingco.com

HYDRO DELTA PRODUCTS

Geothermal Water Heating

According to the Energy Information Administration (www.eia.doe.gov), 12% of the average mid-west households total utility expenditures (heating, air conditioning, water heating, lights and appliances, etc.) can be attributed to water heating alone.  The HydroHeat product line offers unique "On Demand" technology that allows you to generate hot water and space heat and cool your house out of one appliance.  Alternate brands may claim that they can do the same, but our patented technology can heat hot water even when the heat pump is not running to heat or cool your home, while others can't.  This technology will qualify you for the 2005 Energy Bill Tax Credit (see above) and save you more than any Desuperheater option, guaranteed.

Geothermal Comfort

Geothermal heat pumps can offer increased comfort to your home.  These appliances do not require any additional fuel source to heat your home / hot water.  This means no: Carbon Monoxide potential, no allergies from combustibles and no outside air required for combustion.  Geothermal heat pumps also circulate the air in the home more evenly, so temperature variance is less than conventional equipment.  Compared to air-source heat pumps, geothermal heat pumps do not lose their ability to heat as the outdoor temperature drops.  This results in greater comfort and piece of mind.

Geothermal Energy $avings

According to the Energy Information Administration (web site), between January 2003 and January 2006, the average price of natural gas rose from a meager $0.83 / Thm to an astounding $1.40 / Thm.  Average U.S. Propane prices soared to record highs in 2006 to over $2.60 / gal, and Fuel Oil reached highs of over $2.50 / gal.  What does all of this mean?  Your heating and water heating bill grew just as quickly as the prices at the pumps, meaning you are paying more and more each month to heat your home. With geothermal technology, we free you from the always fluctuating fuel prices by relying on a more constant source of heat, the earth.

The chart above illustrates a case study of heating and cooling costs for similar homes with alternate sources of heating, cooling and water heating.  The geothermal heat pump save tremendously as compared to even the highest efficiency gas or propane systems.

In August of 2005, the President signed an Energy Bill granting homeowners incentives to build green.  According to this bill, owners of eligible ground source heat pump systems will receive up to $300 in tax credits for installing a geothermal heat pump.  Eligible units must meet the following criteria: 14.1 EER & 3.3 COP for closed loop, 16.2 EER & 3.6 COP for open loop and the system must have a hot water "assist" (Desuperheater or On Demand Technology).  Most HydroHeat geothermal heat pumps meet these stringent criteria.

According to the Energy Information Administration (view document here) of the average home's utilities (heating, cooling, water heating, appliances, etc.) 59% is attributed to heating (39%), cooling (8%) and water heating (12%).  With a HydroHeat geothermal heat pump system, you can save on all of these expenditures.  Other geothermal heat pump manufacturers typically cannot cover the entire water heating usage with the heat pump as they will require gas or electricity to assist the heat pump in water heating mode.  Read more about water heating below in the "Geothermal Water Heating" section.

What is the typical payback on a geothermal heat pump?

Although geothermal heat pumps may have a higher cost of installation, payback can be instantaneous when a home equity loan or construction loan is involved.  If your existing system needs to be replaced, or if you are building a new home, a geothermal heat pump may offer you instant payback as well.

Table 1 to the right is a typical amortization table.  It helps calculate the monthly payment you can expect.  To borrow $1,000 over 30 years at 5.75% will require approximately a $5.8357 payment per month to the lender.  To borrow $8,000 (8 x $1,000) over 30 years at 5.75% will require approximately a $46.70 payment per month to the lender.

For a geothermal heat pump, the savings can exceed the cost of borrowing even when compared to the highest efficiency alternate system.  Below (table 2.), we have compared the typical Propane Heating & Water Heating system with High Efficiency Cooling to a Mega-Tek TS Geothermal system with On-Demand Water Heating technology.  Electric was assumed at $0.08/kWh and Propane at $1.50 per gallon - this home was located in the St. Louis, MO area.

Table 2 above can be summarized as follows:  While the installation cost (A) may is higher for the geothermal system, the cost is not 100% upfront.  Rather, the cost is periodic (monthly) to the lender in the amount of $105.04 per month (B).  In this example, the estimated yearly costs of operation for the geothermal and propane system (Heating, Water Heating and Cooling) are estimated at $949.42 and $2,625.00 respectively (C).  At these estimated yearly operating costs, the monthly cost of operation would be $79.16 and $218.75 per month respectively for the geothermal system vs. the alternate Propane system (D).  The monthly geothermal savings is therefore $218.75 - $79.16 = $139.63 per month (E).

Conclusion:  If you are paying $105.04 monthly to the lender, but receiving $139.63 per month in savings, you have already achieved instant payback . . . you are actually generating $139.63 - $105.04 = $34.59 per month as income.

The example in Table 2. illustrates an amazing, yet common tendency with geothermal heat pump systems.  Whether the competitive source is Propane, Natural Gas, Electric (even air-source heat pump) or Fuel Oil, geothermal heat pumps can typically have instant payback.