The payback period for geothermal heat pump systems normally varies between four and eight years. Government tax credits will offset at least 30% of the up front cost of these systems and state loans are also available at interest rates as low as 3.75 percent. Business owners are also be eligible for national grant money to offset up to 25% of the total costs.
The exact payback timeframe depends on many factors including size of the building, efficiency of the building envelope, and demand placed on the system. Once your geothermal heat pumps are up and running, you can look forward to a 12% to 25% annual return on your investment.
With the cost of energy rising so unpredictably, it makes sense now more than ever to switch to an economically viable energy alternative. In the winter of 2010 propane cost roughly $2.20 per gallon in the Northern Rockies. Now, in 2012, fossil fuel insiders are predicting prices around $3.00 per gallon - a 36% increase! While electricity, which is the fuel souce for goethermal heat pumps, has not risen above $0.10/kWh over the last five years, and is anticipated to stay stable for many years to come.
As compared to solar photovoltaic arrays, which can take from 10 to 15 years to payback, geothermal heat pumps reduce your energy consumption enough to pay you to heat and cool your home after only a few years. And if you take advantage of low interest financing, heat pumps can save you enough on your monthly bills to pay off the loan and monthly interest while putting some money in your pocket - a positive cash flow right from the start of operation.
During new construction is always the best time to install a geothermal heat pump system. The upfront investment will produce the shortest economic return on investment and provide a positive cash flow to offset incremental mortgage payments. Don't incur extra costs associated with retrofitting your home ten years down the raod - choose to install at the beginning for the greatest savings.