You too can save thousands with geothermal. Here’s how.
Although the cost of a geothermal system usually comes as a shock to many Massachusetts homeowners, these systems pay for themselves within the equipment lifetime – sometimes multiple times. Here’s the math:
Suppose your Massachusetts home consumes 1,000 gallons of oil per year to heat your home. At $3.65 per gallon, that works out to $3,650 per year.
When compared to oil, you can conservatively expect to save at least 50% annually at today’s oil prices when heating with geothermal. Your bill this year would then be approximately $1,825.
Now suppose you apply an inflation rate of 5% to each of these expenses. Your annual heating costs for the next 20 years would look like this:
Cost of ownership should also be considered when shopping for a geothermal system. Geothermal systems last 1.5 to 2 times longer than conventional fossil fuel heating systems (15 year versus 22+ years). Maintenance costs are also lower for geothermal systems because there is no combustion and the equipment is not exposed to the elements. The numbers become particularly attractive in new construction scenarios where geothermal systems cost almost the same as a conventional system when tax credits are applied.
The chart below shows lifetime operating costs of oil and geothermal systems in new construction. To be conservative, we have assumed that the maintenance costs on both systems are the same.
You can see how quickly those savings add up! For this example, the lifetime savings when compared to oil is over $80,000.
Notice that our example does not take into consideration the fluctuating cost of oil. Here is some data that we found on the US Energy Information Administration website for the price of No. 2 residential heating oil. While prices were relatively stable through the 90s, over the past 20 years, the price of home heating oil has actually increased at a rate much greater than 5%.
What would you do with an extra $80,000? Do you think the price of oil is going to go down? Let’s hear your thoughts.
Call us today at 617-955-0063 to find out how much you could save by installing a geothermal system at your Massachusetts home or business.