Geothermal Heat Pump Savings Calculator

Formula

The formula to calculate the annual savings from using a geothermal heat pump is:

\[ S = L \cdot \left(1 - \frac{E_g}{E_c}\right) \cdot C \]

Where:

$S$ is the annual savings in dollars
$L$ is the heating and cooling load in kilowatt-hours (kWh)
$E_g$ is the geothermal heat pump efficiency
$E_c$ is the conventional system efficiency
$C$ is the energy cost per unit in dollars per kilowatt-hour ($/kWh)

What is a Geothermal Heat Pump?

A geothermal heat pump, also known as a ground source heat pump, is a heating and cooling system that utilizes the stable temperature of the ground to provide efficient heating and cooling for buildings. Unlike conventional systems that rely on the outside air temperature, geothermal heat pumps use the relatively constant temperature of the earth as a heat source in the winter and a heat sink in the summer. This results in higher efficiency and lower operating costs. Geothermal heat pumps are environmentally friendly and can significantly reduce greenhouse gas emissions compared to traditional heating and cooling systems.

Example Calculation

Example:

Heating and Cooling Load: 10,000 kWh
Geothermal Heat Pump Efficiency: 400%
Conventional System Efficiency: 90%
Energy Cost per Unit: $0.15/kWh

Calculation:

\[ S = 10,000 \cdot \left(1 - \frac{400}{90}\right) \cdot 0.15 = 10,000 \cdot \left(1 - 4.44\right) \cdot 0.15 = 10,000 \cdot (-3.44) \cdot 0.15 = -5,160 \text{ dollars} \]