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Climate change Imagine A World

The Unusual Cost Structure of Geothermal Heat Pumps

Since writing my post Planning for a Heat Pump Furnace in Michigan, I’m getting closer to taking the plunge. I’ve learned some interesting things along the way, most of all about geothermal, which was not on my radar at first. This post looks at the near- and long-term costs of geothermal heat pumps and the incentives they create.

Does cost matter? It shouldn’t, but it does. At a societal level, the urgency of electrification is well-established. Humanity must replace fossil-fuel-burning equipment with electric alternatives and the grid that powers them must be converted to running on renewables. The future is grim if these things don’t happen.

In the face of ecological collapse, it shouldn’t much factor into the equation whether electrification costs somewhat more or less than continuing to spew carbon. At least, not at a societal level.

But for individuals faced with replacing an old gas furnace, of course cost is a deciding factor. As I got price estimates and read, I made a spreadsheet for some basic cost comparisons of geothermal vs. high-efficiency gas heat (with electric A/C). The result surprised me.