pcda geothermal presentation
DESCRIPTION
Innovative technology that can reduce your facility heating and cooling costs immensely. Though this slide show discusses residential application, it also can be extremely beneficial for manufacturing or commercial facilities.TRANSCRIPT
1Ponca CityDevelopment Authority
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What is Geothermal Energy?
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A Renewable Resource
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An Unlimited Energy Source from the Earth:
150 ft.or more
100 ft.40 ft.
Small Yard Space = Large Heat Source
Lots of
Energy Available
40 BTUs Per Cubic Foot
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Source of Geothermal Energy:
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…one method for capturing geothermal
energy is through the use of
Geothermal Heat Pumps…
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Geothermal Heat Pumps…
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…transfer this stored energy & use
temperature differences above & below the
earth’s surface to heat & cool buildings…
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1010
Geothermal Heat Pumpsare one of the Most Effective
& Deployable Methods of Energy Transfer
According to the EPA (1993), geothermal heat pumps produce the lowest CO2
emissions, including all source effects, of all available space-conditioning technologies.
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Heat Pumps Are All Around Us…
Air conditioners & air-source heat pumps transfer heat from inside houses to the air outside
Refrigerators transfer heat from food into the kitchen
HEATHEAT
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Basic Geothermal Operation:
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A geothermal heat pump circulates water through a sealed underground piping loop where it is naturally warmed (or cooled) by the earth
…using Heat Pump Technology
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The Earth is the Source of Heat in Winter…
Outdoor air design temperature:-5°F72°F
60°F
A geothermal heat pump transfers underground heat into the building to provide heating
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…and an Efficient Place to Reject or Store Heat in
Summer…
Outdoor air design temperature:95°F75°F
60°F
A geothermal heat pump transfers heat from the building into the ground to provide cooling
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Geothermal Energy & Heat Pumps:
• HistoryRapid growth in 80’s & early 90’s
• Energy costs declined
• Utility de-regulation
• Current Return to rapid growth
• Energy cost/availability issues
• Environmental concerns
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Geothermal Heat Pump Historical ARI GSHP Shipments 1983 - 2007
50,000
25,000
01983 20073
22004
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Market Growth Drivers:
• High Cost of Energy– Fuel switching (propane to electric)
– 50% increase in electric costs
– Increased demand
• Environmental Concerns– Global warming/climate change
– Air quality
– Limits on new generation
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Consumer Concerns:
- Rising fossil fuel costs
- Environmental concerns
- Limited energy supplies
- National security
(Both Fossil Fuel & Electric)
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Geothermal Heat PumpsMajor Market Barriers:
• Lack of Awareness – both consumers & institutions
• Perceived initial cost premium• Loop installation & infrastructure development• Retrofitting current systems• Perceived reliability issues
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Major GHP Improvements:
• No defrost cycle with GHP making system more dependable & energy efficient
• 410a refrigerant provides warmer air temps during heating mode in the home
• 410a refrigerant transfers heat better than R22 keeping compressor cooler & lengthening equipment life
• Quieter than conventional systems
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Energy Issues:
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Geothermal Heat Pump Industry Opportunity: Significantly Lower U.S.
Energy Demand
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“Built Environment”HVAC:
= 70% of all electric energy consumed
Idaho Energy National Lab
Residential + Commercial + Institutional
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Residential Energy Usage:
• Heating & air conditioning
• Lighting
• Domestic hot water
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HVAC Energy Use ComparisonsReduces energy consumption by 50%:
Conventional HVAC - Home Geothermal HVAC - Home
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Geothermal Heat Pump Efficiency:
1 unit of energy from the grid
Plus:3-5 units of “free” energyfrom the earth
Yields:4-6 units of energy for the building
400 - 600% Efficient
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Geothermal System Components:
• Heat Pump• Ground Loop
– Deep (150’-250’) Vertical Loop or – Shallow (6’-8’ deep) Horizontal Loop
• Hot Water Heater
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Incentives
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http://www.dsireusa.org/Index.cfm?RE=1&EE=1
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Geothermal Heat PumpResidential Tax Incentives:
Federal Income Tax Credit: 30% of total GHP system cost Credit capped at $2000 for 2008 Credit unlimited for 2009 thru 2016 Can be used to offset AMT tax Can be combined with solar & wind tax credits Can be used in more than 1 year – carry forward
Eligibility: Home must be located in U.S. Includes houses, cooperatives, condos, mobile homes Does not have to be main home GHP must meet Energy Star requirements Placed in service between 1/1/2008 & 12/31/2016
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Geothermal Heat PumpBusiness Tax Incentives:Federal Income Tax Credit:
10% of total GHP system cost Credit not limited Can be used to offset AMT tax Can be used in combination with subsidized financing Can be used in more than 1 year
Accelerated Depreciation: 5-yr MACR depreciation for entire GHP system Eligible for bonus depreciation in 2009 (50% writeoff 1st yr)
Eligibility: Building located in U.S. Original use begins with taxpayer Does not have to be your main home GHP must meet Energy Star requirements Installed between 10/3/2008 & 12/31/2016 Can be used by utilities
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Geothermal Heat PumpOther Stimulus Incentives:
Small Business: $250,000 in Section 179 expensing for 2009 5-yr NOL carry back for business under $15 million in sales
Schools: $22 billion in tax-exempt construction bonds $39.5 billion in additional funding to local school districts
Energy: 30% tax credit ($1500/yr cap) - home efficiency upgrades in 09-10 $2,000 energy efficient home tax credit for builders $1.80/ft2 energy efficient commercial building tax credit $6.3 billion - energy efficiency & conservation grants $5.0 billion - weatherization assistance $4.5 billion - upgrade Federal building energy efficiency $6.5 billion - military bases to modernize & improve efficiency $4.0 billion - improve public housing & upgrade efficiency
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Value of Residential Incentives in Ponca City:
Element $/ton capacity
Ground Source Heat Pump Installation ~$6,000
30% Federal Tax Credit ($1,800)
PUCA/OMPA W.I.S.E. Rebate ($800)
PCUA/OMPA OK Comfort Program ($1000)
Climate Master Discount (5-10%) estimate ($300)
Total Reductions $
%
($3900)
65%
Your Cost $
%
$2100
35%
Typical Energy Bill Reduction 50%
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Who Benefits?Win-Win for All Involved:
• YouThrough reduced monthly electricity cost, ~50%3 – 5 year payback
• PCUA/OMPAIncreased winter demand & improved load factorDecreased expensive summer peak demand
• Better utilization of existing generation assets• Environment
Reduced overall electricity demandReduced CO2/GHG emissions
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Items Requiring Consideration:
• Locating wells or loops• Location of existing utilities• Property boundaries• Utility setbacks or covenants• Service upgrade• Backup power• Water heating
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Geothermal Heat Pump Take Aways:
• Most efficient way to heat & cool • Classified as “renewable energy resource”• Reduce electricity consumption & cost ~50%• Win-Win for all involved• Outstanding incentives available now• Reduced CO2/GHG emissions• Environmentally & economically friendly• Comfortable
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What You Can Do Now?
• Obtain a design with “Manual J” load calculation & cost estimate:– Stolhand– Ward’s– Hutchinson
• Submit rebate application to PC Energy• Investigate loan options:
– Local banks & CUs– ClimateMaster
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