Geothermal cost and payback

Geothermal, like other central heating and/or cooling systems can be installed in a number of configurations including forced air, hydronic baseboard, and radiant floors for distribution. The source can be either an open or closed loop. A geothermal system usually cost somewhat more than a conventional fossil fuel system with air conditioning to install but has a lower operation cost with no fuel deliveries. There are also no atmospheric emissions of carbon monoxide, carbon dioxide, and hydrocarbons with a geothermal system. There are many factors to consider when quoting a house for installation of a geothermal system such as insulation, acres of land, square feet of your house and more. A simple meeting will allow us to determine the right set up for your house whether we are retrofitting or installing for new construction. We will provide you with a quote including the different options that you can choose from. The common payback period is between 3 to 7 years.

General Cost Information

If you didn’t get a geothermal system, you would still need heating and cooling for your home; a complete high-efficiency conventional system costs an average of $22,000. Subtract that from the estimated $25,000 for a geothermal system (this number can change based on the factors in the above paragraph) minus the federal tax credit, that offers between $5,000 - $7,500, the real cost of going with geothermal is around the same as a conventional system. Although the cost to install is higher than traditional heating and cooling systems NP Environmental makes up for it in the below incentives as well as the payback and savings you will receive far into the future.

General Savings and Payback Information

With a geothermal heating and cooling system, the ground-loop and heat exchanger provide all the hot water your home needs, so you no longer need to pay to heat it up. That saves an average of $500 a year, according to the DOE (Department of Energy). If you are calculating out to 25 years, the estimated life of the system, add an average annual increase of 4% to that, to account for steadily rising utility prices. When it comes to energy savings, the first year, your system will save you an estimated $1,650, because you don’t need to pay for conventional heating and cooling. Add a 4% increase to that every year going forward. You can also save an average of $500 a year in repair and maintenance costs, because geothermal heating and cooling is more reliable than conventional systems. To look at it in monthly terms your monthly savings will average $50-$100 including operational cost savings plus the cost of a low interest loan.

If you save $1,650 each year in energy and $1,000 in hot water and maintenance, the payback period would be just short of three years. Over 20 years, you can estimate that the system could save you $69,000. Of course, if you already have a competent HVAC system, your payback period is going to be a little longer, because you can’t subtract out $22,000, but if you have new construction or have to replace an aging system, the math works to your advantage.

Features and Benefits

How can I claim the tax incentive?

Use IRS Form 5695. All NP Environmental GHP Systems qualify for the 30% tax credit.


NP geothermal eating dominant design produces the most comfortable operations with some of the highest discharge air temperatures in the industry. Even, steady comfort without hot and cold spots. NP Geothermal has quite operations, dual isolated compressor mounting for ultra quite operation. All in all, NP Environmental provides what you want, a geothermal system that works and produce comfortable heating and cooling.

Peace of Mind

NP Environmental offers geothermal system with high efficiency compressors to minimize energy usage so you know you will always save. Variable speed blowers provide optimal earth loop pump control algorithm to provide maximum comfort at the lowest energy usage. Heavy gauge stainless steel cabinet with a lifetime warranty, 10 years part warranty on all refrigeration components as well as 3 years parts and labor warranty on the electronic components and controls means you will have years of worry free operation. With a 30 years system life cycle, 2-3 years times that of a conventional system you have every reason to go GHP with NP.