How does a Geothermal Heat Pump (GHP) system save money?
With a COP of 3.0, the cost of heating would be one-third (i.e. two-thirds less) of the cost to operate an electric resistance heating system, such as baseboards or electric furnace. With a COP of 4.0, the savings can be as much as three-quarters off the price of electric heating and cooling. As earth energy technology improves and the COP increases above 4.0, the operating savings also increase. Figure 3 shows the operating cost comparison between a Geothermal Heat Pump system and those conventional heating systems. Though the cost of initial installation of a Geothermal Heat Pump system is higher than conventional heating and air-conditioning systems, it can be offset by the saved money in energy cost in a few years. So, a Geothermal Heat Pump system can save considerable money regarded in a long term.
