Is a ground source heat pump worth the extra initial cost?
Almost always, yes. Let’s look at an example of a 1700 sq ft house and compare the cost of operation of a Geosource heat pump using a heat pump rate of $.05/Kwh with a 92% efficient LP furnace using $1.25/gal fuel prices. Assume the heat pump costs $15,000 installed and the furnace and A/C costs $6000 (not counting ductwork in either case). Assume also that your electric rate is increasing by 2%/year and LP is going up 5%/year and you finance your house for 20 years at 6% interest. The annual cost of operation of the heat pump combined with loan costs is $1927 ($1289 loan cost and $638 operating cost) and the annual cost of the conventional system is $2609 ($515 loan cost and $2054 operating cost). You save $647 your first year of operation. After 10 years, you save $11,231: More than enough to pay back the difference in cost. The bigger the house, the more you save.
