ROI on Geothermal? (documentation, fees, housing, construction)

[VA_Chemist]

I am removing my 35 year old fuel oil boiler and water baseboards and will be replacing everything with a heat pump and ducts for forced air.

I expect this will increase my property value due to having central air instead of window units and having new equipment.

I am trying to decide between conventional and geothermal for my heat pump. I expect that conventional would not add additional value to my home relative to anything else.

Geothermal is more expensive, but is considered a renewable resource (tax credit) and will result in much lower electric bills. I am trying to determine if having geothermal will have any impact on future resale value. We don't plan on selling for a long time, but it is still worth considering. Does anyone have any insights into this? Do geothermal properties get a premium? Or, are they look pools (some people like them and some people don't)?

I live in northern Virginia.

Thanks

[chet everett]

I just got back from a weekend in Northern VA and I do think that there are probably enough well paid government higher ups and engineering firm types that this MIGHT be a selling feature for some folks.

Of course, if you have done the research on this you probably already know that the real issues when getting rid of high temperature boiler based system to any kind of forced air system (or a low temp radiant hyrdonic system) is getting the kinds of INSULATION / WEATHERIZATION that'll really increase your comfort AND drop the energy bills!

I would certainly get a professional energy audit with the full bore "blower door" tests to make sure that you address any areas that can be insulated / draft proofed / moisture proofed. Record the results to the maximum degree possible, with video of the work and save all documentation / receipts.

The energy audit should also help you decide the EXACT sizing of your heat pump. With data and regional info about heat vs cooling and the current and projected costs for electricity you ought to be able to determine what pay back period the geothermal solution might provide. My experience is that unless your house is pretty far out there in cooling load and/or has other intensive needs (like maybe heated pool or similar) the pay back period is dangerously close to the likely age of replacement -- you thus may not truly see enough savings to justify the costs of the geothermal heat pump and ground loop(s) until it is at the end of it's useful life. Of corse the stuff that will be available then will probably be cheaper / more efficient and you will already have the gowned loop(s) / well so it might be worth it...

The other thing is that this is an expense that some folks (Ed Begley, Bill Nye) would gladely swallow, knowing that the net energy is lower regardless of increased upfront costs. I suspect even when the Obama administration goes home DC will have enough of those types to consider this a selling feature IF your home will work on their pay scale...

[Racelady88]

As a buyer I would not pay more for a house that had geothermal than I would for one that did not.

[cohdane]

Right now, geothermal is a rarity-- so you'd have less competition for "green" buyers. If I could find one, I'd buy it. Depending on how far out you sell, that may or may not still be the case.

I have heard that California has some sort of energy standards that may one day apply to housing. It wouldn't surprise me if 10-20 years from now, people who's homes aren't efficient are charged higher taxes or other fees. Not nice, but certainly a possibility. Obviously, if that came to pass, geothermal would be a big benefit. (It would also drive a whole new construction boom retrofitting old houses for energy efficiency-- if energy efficiency is part of the building code, homes sold or worked on will have to meet that code, etc, etc, etc.)

[GoPadge]

Having lived in Metro Dallas were ground movement is a big worry, I'd be concerned with the life expectancy of the hoses used to pump the coolant down into the ground. (Of course that's because I'm a bit gunshy of plastic pipes after having to replace a watermain.)