If you were given the choice of burning money or saving money, which would you choose? The question may sound crazy, but that’s what each homeowner faces when de­ciding whether or not to invest in a geothermal system. Because a geothermal system tends to have a higher installation cost than most ordi­nary systems, many homeowners view it as an expensive system. But this is only half of the picture. As a homeowner, consider more than the initial investment when purchasing a new system: consider the monthly energy costs and the annual maintenance costs. You may find that a fossil fuel furnace will cause you to burn money rather than save it, and an ordinary air conditioner will cause you to waste energy rather than conserve it.

When selecting a system, always consider the payback, efficiency, cash flow, operating costs and system life-span. System payback is how long it takes to recover in energy savings the difference in the costs between geothermal and ordinary systems. On average, the added initial cost of installing a geothermal system can be recovered within three to five years. Your geo­thermal specialist will be able to help you figure your payback on this investment.

Geothermal systems can be used in new and retrofit applications. But as a new home buyer, you are an especially good candidate for a geo­thermal system. Because you are already mak­ing a long-term investment in new construc­tion, the initial cost of the system can usually be tied into your monthly mortgage payment. The monthly savings from the system will generally cover the additional amount added to your mortgage payment. So you are creating a positive cash flow – right away!

Another consideration is total heating, cool­ing and domestic hot water operating costs. A geothermal system is the total comfort system with the lowest overall cost. With most ordi­nary systems, overall operating costs are based on the efficiency of more than one system – a fossil fuel furnace, a central air conditioner and a water heater. With a geothermal system, all operations are handled by one system, as­suring that efficiency and savings are achieved in all areas. In addition, system maintenance and life span should not be overlooked. For instance, ordinary systems frequently require regular maintenance for the furnace and the air conditioner. However, a geothermal system requires little or no maintenance beyond peri­odic checks and filter changes.

When faced with the purchase of a new heat­ing, cooling and water heating system, you have two choices: either burn money with an ordinary system or save it with a geothermal system.