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Geothermal Heating and Cooling. What to Know for Your Home or Business.


Geothermal units are being built at Louisville’s Norton Commons. A series of loops are being used — excavating about 350 feet — for an alternative to traditional HVAC systems. The loops connect to geothermal heat pumps, which can significantly reduce heating and cooling bills.

Geothermal systems are being installed in residential and commercial buildings in Louisville, from large projects to single-family homes.

The trend is bolstered by a 30% federal tax credit and a trend of climate-conscious consumers looking to reduce the environmental footprint of their properties.

But technology can also bring significant savings on utility bills in the long run.

The Courier Journal spoke to some industry experts and consumers about geothermal systems and considerations for homeowners interested in the technology. Here’s what to know:

Ask an expert

Typically, the first step in evaluating the potential for geothermal heating and cooling in a building is a consultation.

An expert will calculate a home’s heating and cooling needs and determine whether there is room to install the underground circuit, which is how the system exchanges heat with the Earth.

Horizontal loops take up more surface space but are shallower, while vertical loops take up less surface area and are drilled deeper.

Larger buildings require more heating and cooling capacity. Experts will also assess how “leaky” a building is — a lack of insulation means heating and cooling systems must work harder to maintain indoor temperatures.

Consider the costs

Geothermal units are being built at Norton Commons. A series of loops are being used -- digging about 350 feet -- for an alternative to traditional HVAC systems.

The biggest barrier to transitioning a building to geothermal heating and cooling is the upfront cost, including drilling into the Earth in some cases.

Larry Kaelin, who has been in the geothermal installation business for 30 years and owns local company Geothermal by Design, said the main consideration for installing a single-family home is time.

“While the installation price of a geothermal system can be several times higher than that of an air source system with the same heating and cooling capacity, the additional costs can be paid back in energy savings within 5 to 10 years, depending on the cost of energy and incentives available in your area,” according to the Department of Energy.

If the homeowner doesn’t plan to live in the house for 10 years or more, bearing the upfront installation costs may not make sense, Kaelin said.

Geothermal heat pump systems generally involve much lower maintenance costs. And the Department of Energy rates geothermal heat pump equipment for a longer lifespan than conventional systems.

“You’ll buy two of these systems before you buy another one of these,” Kaelin often tells customers in his geothermal sales pitch.

Some geothermal systems can also divert excess heat to a home’s hot water needs, which can translate into additional savings, especially in the summer.

Geothermal energy can combine well with other renewable energies

Several years ago, Sam Avery installed geothermal energy on his farm in Hart County.

Avery is a renewable energy advocate and former solar installer, and has solar power on his farmhouse. He said the two make a good pair and help with energy usage.

“If I didn’t have geothermal energy, I would use all my solar energy to heat my house,” he said, “and I don’t want to do that.”

When the house was built, Avery didn’t know he would be installing geothermal energy, but it was a good fit for his property.

Not every home will be so compatible, but geothermal is “a very simple and adaptable technology,” he said. “I think it can be used for a lot of things that it’s not being used for now.”

Connor Giffin is an environmental reporter for The Courier Journal. Contact him directly at cgiffin@gannett.com or at X@porconnorgiffin.





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