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Geothermal heating and cooling systems can bring your energy bill down by quite a bit. But they’re also really expensive (and difficult) to add to your home. This can make it tough to figure out whether installing one is a good idea or not.
We’ve put together this article to answer that question. Keep reading to learn everything that you need to know about geothermal heating and cooling systems, geothermal operating costs, and geothermal savings to figure out whether purchasing one would be a smart decision for you.
The exact cost of installing a geothermal system will depend on the size of your home and the layout of your property.
The average all-in cost for installation ranges between $12,000 and $30,000. But your price could be as much as $45,000 if you have a large home or a type of property that will make it difficult for installers to work.
While installation costs for these systems are high, you end up getting a lot of that money back through geothermal savings thanks to reduced geothermal operating costs.
The EPA says that you can bring your energy bill down by as much as 70% with a geothermal system. So you can figure out how long it would take for you to break even on your investment if you know how much you spend on energy per year.
For example, if you spend $2,000 per year on electricity, you could see that go down to as low as $600 after accounting for your new geothermal savings. If the system costs you $14,000 to install, it would take you 10 years to break even on your investment.
That’s good news considering the fact that geothermal systems last an average of 20 to 24 years.
Besides giving you access to low geothermal operating costs, installing one of these systems could also add some meaningful value to your home.
Some studies have found that every $1 decrease in annual utility bills increases a home’s value by $20. So if you saved $1,400 per year with a geothermal system, you may be able to sell your home for $28,000 more.
This is great news if you’ve been hesitant to add a geothermal system to your home just because you’re not sure how long you’ll stay there. It shows that even if you do decide to move soon, you shouldn’t lose the money that you spend on a geothermal system.
Most geothermal systems end up paying for themselves over their lifespans thanks to the amount of money they save you in energy costs. But you do need to have a significant amount of cash upfront to install one of these systems, which may not be realistic for you.
Want to learn more about geothermal systems and geothermal savings? Reach out to the experts at ABE Heating and Cooling. We are located in Brighton, Colorado, and serve the entire Denver Metro Area.