Sound too good to be true? In fact, geothermal systems offer such a lengthy list of benefits that at first glance, they do seem too good to be true.
More than 250,000 of these systems are installed around the country, providing excellent space conditioning and slashing energy expenses for residential and commercial customers.
Today geothermal technology represents between 1/2% to 1% of the United State’s $64 billion hvac market. That market share is growing.
According to the Geothermal Heat Pump Consortium, a non-profit organization, the current growth trend is expected to result in the installation of 400,000 units by the year 2005, with more than seven million units by the year 2010.
Many factors seem to indicate that it’s not.
The Department of Energy continues to characterize geothermal as an important tool in the energy market.
In fact, the owner of a home with 1,500 sq ft of space can expect to pay from $30 to $50 monthly to heat and cool with geothermal in most U.S. climates.
In commercial markets, the end-user stands to gain even more benefits because of reduced initial costs (often reducing boiler room space needed in the building, thus freeing up more leasable space), as well as monthly operating cost savings and maintenance savings.
Finally, longer equipment lifecycles in both residential and commercial installations provide excellent motivation for end-users.
Hvac contractors continue to face stiff competition from consolidators, large national contractors, and increased growth in the industry. Many of the most successful geothermal contractors have found the technology to be a true differentiator for them, allowing them to offer their customers several levels of choices, as well as a product that is not available with every company.
In turn, geothermal offers contractors an opportunity to grow their business and ultimately, their profits. The initial investment of time and training is often intimidating to contractors, but that investment can quickly turn into added profit and sales.
Just as builders and suppliers who offer a unique product in a market can capitalize on that niche, so can geothermal contractors.
Furthermore, the upscale and growth levels of the end-users for this product allow contractors to build a business on word-of-mouth and repeat business.