Renewable Energy is a term that has become very prevalent in our society.  The growing importance of renewable energy is being driven by two things – climate change and rising energy costs.  By increasing the production of energy using renewable technology, we will reduce the amount of greenhouse gases being emitted into the atmosphere and the U.S. will become less dependent on foreign oil.  Renewable energy is a good thing; however not all forms of renewable are reliable.  Look at wind energy. Winds that have enough power to generate electricity are only there about 30 percent of the time, at least in Wisconsin.  Installation of equipment can be quite costly and the payback in terms of reduced electricity bills is lengthy.

A geothermal home heating and cooling system is also considered a form of renewable energy.  Many homeowners will look into the cost of installing a geothermal system and decide it is too costly (the installation cost of geothermal is higher than other conventional types of home heating systems), but then will call Oconto Electric looking for information on putting up a wind tower or installing solar panels.  Let’s do some comparisons.

Wind Power

Before you even consider cost, you must determine whether your home has a good wind resource and if local zoning codes or covenants allow wind turbines.

Next decide on the size of wind turbine that you will need.  Average homes use 10,000 kilowatt hours annually.  In order to make a sizable dent in the electric bill, you would need from a 5 to 15 kW rated turbine.  You must also decide which type of tower you have room for and how high the tower should be.  Do you want to be connected to the grid so you can sell power back to your utility?  Or do you want a stand alone system that allows you to use less power from the grid.  All of these options will make a difference in the cost of your wind system.

On average, a wind energy system will cost from $3,000-$5,000 per rated kW.  So if you need a 10 kW turbine and the cost is $4,000 per kW, the cost of your wind turbine will be approximately $40,000. Since OEC will be a full-partner of Focus On Energy starting January 1, 2009, you will be eligible for certain rebates provided your system qualifies. There may also be tax credits available to you which will make your system more cost-effective.

The American Wind Energy Association states that payback of a wind energy system can be up to 30 years. 

Geothermal Heating and Cooling

A geothermal heating and cooling system does not create heat; it simply takes heat out of the ground and transfers it to your home.  In the summer it works in reverse, taking the heat out of your home and transferring it back into the ground.  You can also add a component that will allow you to heat your domestic hot water also.  No fuels are burned and there are no emissions from the geothermal system.

Not every home is a good candidate for geothermal.  There has to be enough room to install the loop, although vertical loops take up less room than horizontal loops. 

The cost of the heat pump unit is comparable to other fossil fuel furnaces but the cost of the installing the loop makes the cost of geothermal higher than types of heating and cooling systems.  There are a lot of variables to consider but a good, average additional cost that you would spend over purchasing a fossil fuel system would be $8,000 to $18,000.  The payback ranges from 6 to 12 years.  If you currently have a fossil fuel furnace which can be used as a back up, and add geothermal you qualify for our Dual Fuel Rate which increases your home heating and cooling savings and reduces the number years until the system pays for itself.

There are tax credits available and again you would be eligible for Focus On Energy Rebates if your system qualifies.

The Environmental Protection Agency has identified geothermal heat pumps as significantly reducing greenhouse gas and other air emissions.  For every 100,000 homes using geothermal heat pumps, foreign oil consumption is reduced by 2.15 million barrels annually.  The efficiency of a geothermal heat pump is 400 percent meaning that for every unit of energy used, the system creates 4 units of heat.

Wind versus Geothermal

Wind power used as a renewable energy source is growing and that is a great thing.  The Cooperative Research Network, a service of the National Rural Electric Cooperative Association, whose mission is to monitor, evaluate and apply technologies that help electric cooperative utilities control costs, increase productivity, and enhance service to their consumer–members, has determined that wind projects on a large scale of 50 MW or more are currently more cost-effective than individual residential projects. 

If you are thinking about installing some form of renewable energy, consider the upfront investment and the payback.  Geothermal might be a more reasonable way to save money. 

If you would like more information on wind generation, go to
www.windpoweringamerica.gov/pdfs/small_wind/small_wind_guide.pdf or contact OEC for a copy of the U.S. Department of Energy’s Small Wind Electric Systems, A U.S. Consumer’s Guide.

The Wisconsin Geothermal Association has a new website that you will also want to visit, www.wisgeo.org.