Wednesday, September 3, 2008

Explore alternative options to lower heating bill this winter

Choose from geothermal systems to air source heat pumps to wind to biomass stoves to coal stoves. Options available for all price ranges.

Dreading your heating bill this winter? The members of St. John Church of Weber aren't.
The church is in the process of switching over from a propane system to a ground source heat pump. With the change, the heating bill will drop from $19,000 a year to $3,500. That's good news – especially when propane is expected to increase again this winter.
The decrease in the bill is due to the efficiency level of geothermal heating. The system the church is installing will have a 200% efficiency rating, according to church member Scott Kittelson. Not even an all-electrical system rate can compare to that; such a system reaches half that rate at 100%.
Darren Lemmerman has long been a proponent of geothermal heating. Church members drew on his expertise when making their decision to convert the existing system over.
Three years ago, Lemmerman switched from an outdoor wood boiler to underground geothermal coils at his home, which also serves as his office.
He kicks himself for not installing the system right away when he built his house 12 years ago. "I was young and foolish," he says now. With the price of energy going up, he decided it was time to convert.
His boiler was operating at an 85% efficiency rate. Compared to the 350% efficiency available through a geothermal system, Lemmerman said converting was a "no brainer."
The cost of the ground loop system was about the same as purchasing a new wood boiler. As an engineer himself, Lemmerman did all his own work, saving some money.
He also tapped into the federal tax deduction of $300, and qualified for an $800 rebate through his electrical company.
"It's paid itself back already," said Lemmerman. "As any business owner knows, a three-year payback on an investment is awesome."
He feels that the system has also increased the value of his home.
Whether or not you believe in global warming, geothermal heating systems certainly generate less carbon emissions, pointed out Lemmerman. "As a living person walking on the planet, you are expected to be a good steward," he said.
"I'd put geothermal heating in the category of common sense," said Lemmerman.
HOW IT WORKS
With a ground source heat pump, water and an anti-freeze solution circulate through a series of ground loop pipes that are buried an average of six to eight feet. The ground loops transfer heat, taking advantage of underground temperatures which remain stable throughout the year. The system can be either closed-loop or open-loop.
When heating, the pumps use a typical refrigeration system to extract heat from the ground loops, concentrate the heat, and circulate the heat through standard ductwork. The system also works easily with in-floor heating. With radiators, some efficiency is lost.
The system reverses in the summer to provide air conditioning, again using standard ductwork to circulate the cool air.
There are several ground loop systems to choose from. When there is limited space, the best option is a looped well system. This is the option Lemmerman took because he wanted to preserve his 20 acres of trees.
When more space is available, a property owner can pick from either a freon-gas system or a water-loop system. The water loop system takes up the most space, and is used when the underground loops will be located 100 or more feet from the building they are heating and cooling.
This is the system St. John is using. Neighborhood Plumbing of Foley is installing 33,000 feet of pipe 10 feet deep.
PROS AND CONS
In evaluating whether or not to switch the system at St. John's the main concern was whether members could afford it. The cost of installing the system there is significantly higher than what a homeowner pays, and will be about $125,000 when all is said and done. Church members were leery about taking out such a large loan, until learning that it would be a wash. Payments on the 10-year loan would be the same as they had been paying monthly for propane.
"We will have no increase in our budget," said Lemmerman.
The Isanti County Historical Society chose to install a geothermal system when it built five years ago. As a small non-profit organization, it was especially important to them to use their resources wisely and to keep their heating and cooling bills as low as they could.
The center's part-time executive director, Kathy McCully, has been so impressed with the system she has now elected to install one at her 79-year-old home in Bradford Township.
"Because we would like to stay in our home as long as possible after we retire, we realized that with the rising cost of propane we may not be able to afford to heat our home," noted McCully. "I see how difficult it is for those on fixed incomes to make ends meet, and I think it will only be getting worse and more expensive.
"Therefore, we have made the decision to convert our heating system now, when we are still working."
Priority Air Mechanical of Isanti (which also installed the system at ICHS) will be putting in the McCully's system this fall, eliminating the $1,500 per winter they've been spending on heat. In all, it will cost $17,500 to install the new system, factoring in rebates from Connexus Energy.
"While geothermal seems to be very expensive to install because of the up-front costs, the system will pay for itself in cost-savings in five to seven years – in less time if the cost of fuel continues to rise," said McCully. "The savings in the long-term far outweigh the cost of installation."
Like many others, McCully also sees a benefit to using a renewable resource rather than taking from the earth.
That may be the biggest benefit of alternative systems, according to Bob Olsen of Windcor Energy. "Politically and for our kids, it's the direction we have to go from an environmental standpoint."
ALTERNATIVE SYSTEMS INCREASE VALUE OF HOME
Olsen has seen an increase in the popularity of geothermal and other alternative heating systems as the cost of natural gas, propane and fuel oil rise.
"Fossil fuel energy is going by the wayside," said Olsen. Today's customers have many options, whether it is geothermal systems, biomass stoves, wind power or solar energy.
"You can say no to the big guys and give yourself a chance to reduce your dependence on some of the larger companies," he noted.
Of course, some companies are strong supporters of renewable energy, including East Central Energy located in Braham. ECE offers a rebate to those who switch their systems over, as well as reduced pricing for electricity, noted Olsen.
To learn about the state and federal incentives offered for switching to renewable systems, browse www.DSIREUSA.org.
Rebates and tax deductions help make the installation of new systems more affordable. "There's stuff out there. You've just got to go find it," encouraged Olsen.
The benefit of the alternative systems extends beyond individual homeowners. The value of a home is increased by a geothermal system or a biomass stove, Olsen said. "A lot of times it's the deciding factor for purchase."
Olsen encourages everyone to check out alternative heating and cooling options.
"I think everyone owes it to themselves to go out and investigate the products and find out what they can do for you," said Olsen.
"I see it as the right choice for years to come."

~ Tesha M. Christensen,
news@cambridgemn.

OPTIONS TO TRADITIONAL HEATING AND COOLING SYSTEMS
Air source heat pumps: In the heating mode, air source heat pumps transfer heat from the outdoor air into your home. When the outdoor temperatures fall below 20ยบ, your primary heating system takes over. In the cooling mode, the air heat source pumps works like a standard central air conditioner and transfers heat out of the building.
Ground source heat pumps: water and an anti-freeze solution circulate through a series of ground loop pipes that are buried an average of six to eight feet. The ground loops transfer heat, taking advantage of underground temperatures which remain stable throughout the year. When heating, the pumps use a typical refrigeration system to extract heat from the ground loops, concentrate the heat, and circulate the heat through standard ductwork. The system also works easily with in-floor heating. The system reverses in the summer to provide air conditioning, again using standard ductwork to circulate the cool air.
Biomass stoves: Radiant heat is generated by the burning of pellets, whether they be corn, wood or other. With a direct-vent system, they are easy to install and don't require chimneys. Many have been scared off in recent years by the rising cost of corn, but Bob Olsen of Win-Core encourages people to investigate stoves first. Corn is still cheaper than the cost of fuel oil or propane. "It's still a good option." There are other benefits to installing a stove than the reduced price of fuel. A homeowner can put the heat where they need it, and the heat is a warmer type than forced air. He added that insurance companies look more favorably on pellet biomass stoves than they do on wood stoves.
Coal stoves: Today's coal stoves burn cleaner with anthracite pellets. The stoves go without tending for up to 36 hours. The ash removal systems require little effort by the consumer, and there is no creosote build-up in the chimney. Representatives at Tradewinds in Isanti point out that the United States produces over one-quarter of the world's coal, which is enough to last over 500 years. Even better, the cost of coal is currently cheaper than corn or biomass pellets.

INCENTIVES
Rebates: East Central Energy (ECE) and Connexus Energy offer a $200 per ton rebate for ground source heat pumps. ECE rebates for air source heat pumps range from $30 to $430 based on the seasonal energy efficiency rating (SEER).
Discounted rates: ECE charges a reduced rate of 6.4¢ per kilowatt hour for geothermal systems and 5.9¢ per kWh for air source heat pumps. Connexus charges a discount of 5.82¢ per kWh for air conditioning and 4.5¢ for heating needs for air source pumps.

FIND OUT MORE

www.DSIREUSA.org
List of state and federal incentives
eastcentralenergy.com: List of rebates and reduced rates; list of local installers
connexusenergy.com: List of rebates and reduced rates
www.econar.com: List of frequently asked questions about the geothermal systems.


INSTALLERS
Mentioned in this story:
Windcor Energy:
www.windcor-energy.com
651-277-0540
Neighborhood Plumbing:
1-800-570-4328
Priority Air Mechanical:
763-444-3500
Tradewinds:
www.hvacandfireplace.com
763-434-8887

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