ACCA New England - How to Make Money in Geothermal
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Transcript of ACCA New England - How to Make Money in Geothermal
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-ACCA NE-How to make $$$ Selling Geothermal
in New England
Chris Williams, Martin Orio
Roger Skillings, and Mike Brogan
Geothermal with Confidence
EARTH ENERGY
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Chris Williams
Water Energy Distributors, Inc. - copyright 2012
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How to Make Money in Geothermal Heat PumpsHow to test your market and reduce risk in the shortest amount of time possible.
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HeatSpring5,000 Professionals Trained Keep in touch with best practices - What are the
most profitable geothermal companies doing and why?
Everyone shouldn’t install geothermal 1 - Test your market2 - Get the partners3 - Create referral business
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Testing Your Market
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1. Testing your MarketPotential Profit. 30k to 50k gross, 10-15% net profit. Could be a large opportunity, but only if you access to
the right customers in the right markets. Your strategy should be to survey old customers and
ask all new ones. Profile of the best and easiest geothermal customers
Expensive fuel source: propane, oil, electric, biomass
Larger then 2,500 square feet buildingOwns their homeLarge lawn/property
Go to blog.heatspring.com/ACCANE to download a geothermal site visit checklist that will help you profile and quality customers.
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Testing Market GoalsYou're only goal is to schedule a site visit. Tag lines to get customers interested:
“Reduce heating bills by 70%”“Geothermal has better returns then the
stock market” Better then 10% returns. 20k invested
will save at least 2k every year, for the next 30 years.
“If you use a traditional system, you’re going to be spend XX amount in the next 20 years.” It will usually be well over $100k
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GoalsDon’t try to learn everything or
become an expertGet a site visit. Get to a place where you are
confident you can make money before investing energy
Once you have a site visit --> Get in touch with partners
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2. PartnersDistributor - Supplies equipment, will help with
designDriller - Drillers License, experience with
closed loop systemsHVAC Contractor - Duct and Refrigeratant
licenseElectrician
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3. Create referral businessMost profitable companies get more
then 80% of business from referralReferrals from past customers
and contractor partnersTwo Proven Tactics to Create
ReferralsInstallation VideoCase Study
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Discuss What Customers Care About
Installation Video - Give 5 To Your First Client and To Contractor PartnersPictures of installation process and final
jobInterview with homeowner
Case Study in 2 to 3 PagesEconomics of JobCustomer MotivationsPhotos
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Review1 - Test your Market - Don’t invest too
much money, survey old customers, get a site visit
2 - Establish Relationships with Partners
3 - Create Referral Business - Create material that customers care about to assist with word of mouth.
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Martin Orio, AI
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What Does the US EPA have to Say About Geothermal Heat Pumps?
Lowest Cost Heating & CoolingBest for the Air Environment
Best for Electric Utilities
EPA Report 430-R-93-004 - Space Conditioning the Next Frontier
To know GEO is to LOVE GEO!
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What is COP ? Efficiency measurement for… HEATING
(Coefficient of Performance)
Top quality Oil or Gas
Furnace 90%
efficient
Pellet or Wood Stove90%
efficient
Electric resistance
heaters100%
efficient
Air-Source Heat PumpAnnually
about 200% efficient in
New England
Geothermal Heat Pump
500% efficient all winter long
Real #’s at…
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SEER vs. EERSystem efficiency measurement for COOLING
SEER = Seasonal Electrical Efficiency Ratio (fluctuating temp exchange)
EER = Electrical Efficiency Ratio (constant temp exchange)
Top efficiency “Air-to-Air” heat pump has a SEER of up to 17
Annual EER up to about 13Efficiency declines as outdoor air temp increases above 75 F!!!
Today’s geothermal
Annual EER up to 31.7With no efficiency decline due to outdoor air temp increase because it is not exchanging with air!
Real #’s at…
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Today’s Geothermal Heat Pump
Laboratory conditions can be achieved in the typical
application!
Not what the “ads” claim
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Water-to-AirGeothermal Heat Pump
Heater or Chilled AIR TO & FROM House
Heat Pump
Earth Coupling
“Real time” delivery – As energy is extracted it is immediately delivered to the zone
Heat pack use DESTROYS
annual efficiencies!!!
Average inside cost: $4,200 to $5,500/ton
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Average install costs!Water-to-Air
Heat Pumps, ductwork,
earth coupling
and install starts around
$6,000/ton
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Electric tank
Heaters as “second
stage” are also EVIL!!!
Water-to-Water Geothermal Heat Pump
Heated or Chilled Water TO & FROM House
Radiant Floor, Base Board, Fan Coils
Accumulator Tank
Heat PumpEarth Coupling
Great for Retrofits & Vacation Homes
“Zone blind” delivery system – Maximum flexibility
Average inside costs: $6,000 to $8,500/ton
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Average install costsWater-to-Water
Heat Pumps, tank, radiant,
ducts, fan coils, earth-coupling,
etc. starts around
$8,000/ton
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The partial resistance heat dilemma!
-ARI 210-FULL LOAD COOLING HOURS
In cooling it’s a “no brainer” as both air-to-air and geo use
electricity. (Compare a 16 SEER to a 31 EER)
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The partial resistance heat dilemma!
-ARI 210-FULL LOAD
HEATING HOURS for
New England
For heating it is a different matter
ENTIRELY!
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The partial resistance heat problem in New England…
Pennywise and Pound Foolish?
An 80% capacity geo system that uses electric resistance
heat to make up the difference (20% of the winter) DOUBLES
annual heating cost!!!! No better than an
air-to-air ductless split!
GEO EVEN BEATS
NATURAL GAS when you do it
right!
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The partial resistance heat problem in New England……AND
Creates an electric power “peak” during winter design days!
Translation – Running a heat pack (resistance electric) costs 4X’s the electrical energy to deliver the same amount of heat!!!
100% GEO system = Annual of COP of 4.5 or better!
80% GEO with resistance “back up” = Annual COP of 2 or less!!!
DOUBLES LENGTH OF SIMPLE PAYBACK !
Resistance
Heat is Futile!
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Geothermal Heat Pumps Make a Better Environment!
Dirty bird! - One Gallon of Fuel Oil= emission of 21 pounds of Carbon Dioxide to the Environment!
“The CLEANER blue flame” - One Gallon of propane or CCF of Natural Gas = Emission of about 10 pounds of Carbon Dioxide to the Environment
ADD 11.6 # of CO2 per gallon/CCF for
TRANSPORTATION of fossil fuels to the home or business!
But wait, there’s more!!!Typical geo
system reduces overall carbon by over 50%
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SafetySomerset, MA
Gloucester, MA
…1.3 million households in Massachusetts served by natural gas and there have been 12 explosions in the past five years… Dept. of Public Utilities
Other Benefits• Home/building Resale• Aesthetics – Nothing on roof or
outside
• System Life – MTBF =48 yr. Small Syst., 19 yr. Large (PRC Corp.)
• Up to 19 Direct Leed Points
• 50% Carbon Reduction• High Efficiency Electric is
“Fuel Neutral”• Bigger Project = Bigger
Profits
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The Daddy of all federal tax credits!
RESIDENTIAL “30% of the entire geothermal
install” Most N.E. states have utility
rebates too!
COMMERCIAL “10% tax credit and 5 year accel.
depreciation” USDA Rural Development
Grants DOER tax credits for municipal
designer/project managers
Water Energy Distributors, Inc. - copyright 2012
All required elements of your new construction or retrofit geothermal system installation are included…
EnergyStar rated unit(s) Hot water Tank connected
to geo HWG Earth-coupling Electrical Distribution Labor Permitting
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Recognized types of Earth Coupling
Closed Standing Open to Loop Column Recycle
Conductive & Advective
Conductive Advective
Water Energy Distributors, Inc. - copyright 2012
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THERMAL EFFICIENCYProperly designed Earth coupling
CLOSED LOOPS – Good thermal efficiency32 ° F Winter 77 ° F Summer
COP’s up to 4.0 & EER’s up to 27
STANDING COLUMN – Better thermal efficiency45 ° F Winter 65 ° F Summer
COP’s up to 5.0 and EER’s up to 30
OPEN to RECYCLE – Best thermal efficiency50 ° F Winter 59 ° F Summer
COP’s up to 5.1 and EER’s up to 31.5
per ASHRAE/ARI/ISO design standards Category - 13256
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Outside Earth Coupling Costs & Needs
OPEN to RECYCLE$ 1,000 - $ 1,700 per ton
STANDING COLUMN$ 1,800 - $ 2,500 per ton
CLOSED LOOPS$ 3,200 - $ 4,400 per ton
-A lot of water and a good place to return it
-Bedrock, clean water and high static
-More heat pump tonnage and ample site space
Water Energy Distributors, Inc. - copyright 2012
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What are we going to talk about ?Who is Skillings & Sons, Inc.The Mechanical Contractor and Well
Contractor Relationship. Partnering up Ground Loop Construction and LogisticsRegulations and Registration
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Roger Skillings, CWD/PI, AI
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HISTORY OF SKILLINGSLeroy Skillings founder of Skillings & Sons Inc
started the company in 1971.
In 1982 started drilling Geothermal wells in the Northeastern Massachusetts area.
Primarily a well drilling company until 1986.
Roger and Norman purchased the company in 1989.
Today we currently employ over 50 employees and are a third generation company.
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The “Mechanical Contractor” and “Well Contractor” Relationship
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What's Needed ForA Successful Project Good Communication
Equipment Load vs. Building LoadGood Engineering
Responsibility of Design Good Timing
Coordinating On-Site Construction
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Important Factors of Good Communication The “mechanical contractor” needs to supply the
building load AND equipment load to the “well contractor”Ground loops are always designed to the building load Piping is designed to equipment load
Sizing The Heat PumpClosed loop 20% over loadStanding Column to load
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How deep does the drilling go…?Closed loop 140’ to 180’ per/ton Shorter is better but can be more costly (CASING) Standing Column 70’ to 125’ per/ton The “Well Contractor” can provide a total bore hole
depth… Responsibility is on the “Designer” of the system.
What's the right pipe size…?The horizontals are to create low head on pump Verticals to meet Reynolds
factor
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Ground Loop Construction and Logistics
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Closed Loop System Open Loop System
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Closed LoopStages of InstallationDrilling bore holesInstalling vertical loopsGrouting Most driller meet .88 BTUH/ft Installing Horizontal Lines. Home run or
reverse return Pressure testing system* Flushing and Purging * Needs to be 2
ft/sec MINIMUM
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Open LoopStages of InstallationDrilling the wellInstalling a temporary pump and
performing a draw down test (UIC water quality test)
Installing the appropriately sized pumping system
Installing electrical, supply and return linesCompleting inside components (how is left
for the HVAC contractor?)
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Regulations and Registration
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Regulations – Closed Loop25ft from potential sources of
contamination10ft from property boundariesClosed loop – 50ft from drinking water
wells* Local Board of Health *
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Regulations – Open Loop
Casing Minimum 15ft into bedrock
Casing Grouted* Local Board of Health *
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UIC RegistrationClosed Loop
Skillings & Sons, Inc. will file the UIC registration
No follow up required.
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UIC RegistrationOpen Loop
Skillings & Sons, Inc is not a geothermal system designer.
Final system design and proper operation are the responsibility of others.
Skillings & Sons Inc will help file the registration.
The “Owner/Operator” is responsible for all necessary documentation, actions, etc. after the UIC has been filed.
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Our ServicesWater Well DrillingGeothermal DrillingWell PumpsWater TreatmentWater TestingHydrofracking
Amherst, NH800-441-6281
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EARTH ENERGY
GEOTHERMALCase Study: Dover, MA
10,000 square foot residence
Mike Brogan
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System Elements
Split W-to-A
Package W-to-A
Water-to-Water
Geo is Modular!
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Install Factors
• Nothing outside to cover-up or landscape• No boiler or furnace• No flue venting/related construction• No hydronic or gas piping• No Oil/Propane tank• Easier to install than conventional• Single system for heating and cooling
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Property Detail
•10,000 Square feet of living space•PLUS 4 car heated garage•PLUS 4,000 sq. ft. – Heated Basement•2” X 6” construction•Open cell spray foam walls and roof•Not EnergyStar
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Annual System Operating Costs
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Remote Data Logger
60% savings in heating
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Q & A
Thanks!