Geo Thermal Energy can be your first biggest step reducing your household energy requirements for heating and cooling your home and producing hot water.
Heating/Cooling a home and generating hot water accounts for approximately 70% of homeowners energy bills.
For a 2000 sqft home, a geo thermal installation would cost you around 15 to 20 thousand, you investment would be recouped on average of 4-5 years.
Geo Thermal Technologies And Mortgages
For many, shelling out the money for a geo thermal system with installation is impossible, but added to your 30 year mortgage actually is quite feasible.
Note: In this calculation, we make the assumption that the price of fuel will not rise, but it most certainly will as we are drifting further and further from peak oil. We also make the assumption that the loan is at 6.5%.
Adding The Cost of A Geo Thermal System To Home Mortgage
- 150k Financed
- 15 to 20k add a Geothermal Energy System
- 6.5 Percent Interest Loan @ 30 Years
Total Mortgage: 170k
Total Monthly Payment: 1,074.52
Energy Bill With System: $120
Monthly Payment With Energy Bill: 1,194.52
Saving Over 30 Years:
$120 x 360 (30 Years) = $43,200
Addition Mortgage Costs = $45,511.20
Total Energy Costs Over 30 Years = $88,711.20
Added Home Value:
$20,000 x 246.01% (Historical Inflation Rate over the last 30 Years) = 49,202
Net Profit over 30 Years w/o Added Home Value: $55,288.80
Net Profit over 30 Years w Added Home Value: $104,490.80
30yr Energy Bill w/o Geo Thermal Technology
Assuming that you have an interest rate of 6.5% with a loan amount of 150,000 thousand, we can calculate average costs. Though you would not pay as high of a mortgage, you also would not incurr as many tax savings either. In fact you would end spending more in output energy and with no reward for it. Additionally, you would have to pay 70% more in utility bills. And of course, this is assuming that the price of energy does not go up.
Monthly payment: 30 Years
Interest rate: 6.500%
Loan amount: $ 150,000.00
$ 948.10 a month
Monthly Energy Bill Without System: $400
Total Energy Bill Over 30 Years:
$400 x 360 (30 Years) = $144,000
Did You Know?
The amount of air pollution caused by the average family in United States can be midigated by 70% by installing a geo thermal energy system
- Climate Change Pollution (CO2) = 56 Tons
- Ozone-Causing Pollution (NOx) = 458 Pounds
- Acid Rain Causing Pollution (SO2) = 374 Pounds
- Particulate Pollution (PM10) = 63 Pounds
- Toxic Lead Pollution (Pb) = 1.2 Ounces
- Toxic Mercury Pollution (Hg) = 0.8 Ounces
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