Going green and saving green
THE PROJECT
As a retired electrician and a Christmas tree farmer, Joe Cardella conducted extensive research about geothermal energy. He liked the idea of geothermal technology, but was unsure of the financial viability of heating his home with it. Amidst the process of building a new home, a friend urged him to talk to Sam Johnston of Terraclime Geothermal. “I went into our meeting convinced that a geothermal system couldn’t make sense economically,” Cardella noted. “What struck me the most was that Sam was honest, reasonable and realistic. He agreed with my calculations, but then explained how new federal tax incentives and tighter building techniques made geothermal not only possible, but a smart thing to do.”
THE RESULTS
Terraclime Geothermal installed a 3.5 ton closed loop system for Cardella’s home, with special attention to the building’s “envelope.” A tight envelope increases the efficiency of the home and decreases the system size. For the 2010 tax year, Cardella will receive a federal tax credit of 30 percent of the total installation cost.
“The tax incentives have generated great interest in geothermal systems across the country and in areas that offer additional incentives, such as the state of Connecticut,” says Sigurd Spearing, Project Manager, Terraclime Geothermal. “The increased attention has led to further research and development, which in turn has made systems even more viable and popular.”
ABOUT THE TAX CREDITS
The American Recovery and Reinvestment Act of 2009 created many tax incentives for residential renewable energy solutions. Homeowners who install geothermal heating or cooling systems receive a 30 percent tax credit for systems placed in service before December 31, 2016. These tax credits differ from deductions: rather than lowering your tax liability by a percentage, the credits reduce your tax liability dollar-for-dollar, up to 30% of the installation cost.
In addition to federal tax incentives, some homeowner may also be eligible for state-specific tax incentives. Check your state's energy office website may have more information or email info@terraclimegeo.com.
Mastella Residence, Farmington, CT
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Faced with a brand-new home and a non-functional geothermal system, the Mastellas turned to Terraclime Geothermal to remediate their system to ensure its effectiveness and stability. |
THE PROJECT
In New England, a favorite winter pastime is to watch the snow fall from a warm and cozy house. For the Mastella family, their new home was as cold inside as the icy winter outside the window. The Mastellas had installed a geothermal heating system that did not work, so they turned to Terraclime Geothermal to get warm.
“The economics drove our decision to rely on geothermal technology to heat and cool our home” said Dan Mastella. “Propane and oil costs remain high and a geothermal system offers long-term cost advantages, which help us justify heating a bit more space.”
The Mastellas initially worked with their builder to install a geothermal system. The system began to fail before they moved into their dream home. Dan sought a geothermal partner to rebuild the system. “We trusted Terraclime with the project because we were impressed with how forthright they were about expectations and how they could measure and guarantee results.”
THE SOLUTION
Terraclime remediated the Mastella’s 14-ton DX system by looking at every angle of the system and how each part contributed to the system as a whole. The system is much larger than the average 5-ton residential system, so the project required extreme attention to detail.
“A successful geothermal system requires a comprehensive approach,” said Sam Johnston, Geothermal Program Manager of Terraclime Geothermal. “The different aspects of the system are individually simple, but to keep the system both thermally and economically effective, attention to detail is critical in the design, engineering, installation and testing phases.”
THE RESULTS
The Mastella’s geothermal system can now effectively heat and cool the home. Because of the size of the home, four heat pumps work together. “Terraclime understands how our heat pumps work in concert to gather, collect and distribute heat,” said Dan. “They tailored the geothermal technology to fit our home.”
Terraclime took a non-functional geothermal system and transformed it into a system that has been tested to ensure that the Mastellas stay at the right temperature for years to come.
Case Study: Prior Residence, Enfield, CT
An avid follower of alternative energy solutions, the Priors decided to go geothermal for both philosophical and economic reasons.
By taking the green plunge, the family reduced its annual heating and hot water expenses from $3,300 to $600. The three-ton system also provides geothermal central air conditioning and dehumidification.
THE PROJECT
The 2,100 square foot Cape Cod style home in Enfield, CT relied on fuel oil for heating and hot water. Given the volatile oil prices and inefficient thirty-year-old furnace, they recognized the opportunity to make the leap to green energy and gain freedom from oil prices. During the last winter the Priors bought oil, heating oil prices topped $3.85 a gallon (US Energy Information Administration).
Once the Priors decided to make the switch, the entire installation process lasted only five weeks. The work focused in the basement, where the team of geothermal experts installed the air handler and geothermal assembly unit.
THE RESULTS
The system successfully heated the home throughout its first winter without any auxiliary heating. The family’s confidence in the system’s performance motivated them to shut off the old oil tank and hot water heater.
Prior reports minimal maintenance: “All I have to do is change the filters every six months – much less work than writing a check to the oil company each month.” In the first twelve months, the Priors cut their annual heating costs by 82%: from $3,300 to $583. Because their new system also includes central air capabilities, this extremely low number also includes cooling and dehumidification.
The Priors benefited from both federal and state incentive programs, which offset their initial investment:
- Federal tax incentive: In 2008, when the Prior’s system reached completion, the federal government offered a tax credit of 30% of total installation costs, with a maximum benefit of $2,000. As of January 2009, the benefit limit has been eliminated, so 30% of the entire installation cost qualifies for the tax credit.
- Connecticut Energy Efficiency Fund: A rebate of $500 per ton, this translated to $1,500 for the Prior’s three-ton system.
As of December 2009, the Connecticut Clean Energy Fund awards qualified Connecticut homeowners a rebate of $2,000 per ton for retrofit projects, up to $12,000.
Case Study: Johnston Residence, Northfield, Massachusetts
In 2008 Robert Johnston bought 1,800 gallons of #2 heating oil, and in 2009 he bought zero. “I kept two leftover tanks of oil in my basement just in case I needed to supplement the geothermal...now I hope to sell the oil.”
THE PROJECT
Robert Johnston’s home, a 2,400 square foot Colonial, dates back to 1802. The historic home offers many stories, from the original residents of its slaves’ quarters to a cutting-edge geothermal system.
In January 2009, Johnston had a five ton geothermal system installed to heat, cool, and provide hot water for the house. The short installation lasted a few weeks.
The age of his home concerned Phil: “Geothermal installation wasn’t exactly a concern of the original builders,” he explained. The team’s experience retrofitting buildings allayed his concerns.
“Phil’s home juxtaposes the eighteenth and twenty-first centuries,” said Dan Felten, of Terraclime Geothermal. Sam managed the entire process, from initial evaluation through the testing period. “There were certainly unique challenges, but existing homes can be just as viable for geothermal as new construction. Our in-depth analysis of the home before the installation process began enabled us to identify these in advance, which ultimately helped us stay on schedule and on budget.”
Terraclime Geothermal manages the entire process, from initial evaluation thought the testing period. The team works with a number of proven partners on each installation. In this case, the home required new ductwork. The geothermal professional teamed with a seasoned HVAC contractor to prepare the house for geothermal.
THE RESULTS
The efficient geothermal system enabled Johnston to cut his annual costs by almost $4,500. In 2008 when he heated his home with oil, Phil spent approximately $5,400 per year on heating. He now spends only $1,000 a year to heat, cool and create hot water for his home.
Phil also qualifies for a 30% tax credit in 2009, from the Energy Improvement and Extension Act of 2008.