In an environment of increasingly volatile energy rates, how is possible to determine which energy option is best for you? What is the outlook for Geoexhange in Ontario for 2014?
In general, high electricity prices and cheap fossil fuels lessen the appeal of the geoexchange option, at least on a cost basis. However, over the long run, since geoexchange technology remains the most effiecient space heating & cooling technology available on planet earth, the installation of a geoexchange system will enventually pay for itself through a reduction in operating costs. So what is the typical payback on a geoexchange system for the average home buyer? Well, if your currently on propane or oil the payback is generally about 5 years. For those with access to natural gas, the payback is somewhat longer, at about 10 years. However, with the dramatic increase in natural gas pricing we saw this year and another increase slated for early 2015, the dawning of the Geoexchang Era may soon be upon us.
The upcoming provincial election is poised to make a big impact on the future of geothermal in Ontario and the single most important issue affecting our industry: electricity rates. In the past, governments have offered limited grants or 'renewable programs' that simply create false economies that dry up when the money does, and even worse; drive up the price of electricty by subsidizing other programs such as solar. If elected governements can concentrate on reducing the delievered cost of electricity to homes, either through improved infastructure or a reduction of subsidizes for programs such as the Green Energy Act, geothermal technology can do the rest. No subsidies needed!