ACCA New England - How to Make Money in Geothermal
Chris Williams, Martin OrioRoger Skillings, and Mike Brogan
Chris WilliamsWater Energy Distributors, Inc. - copyright 2012
How to Make Money inGeothermal Heat PumpsHow to test your market and reduce risk in the shortest amount of time possible.
HeatSpring 5,000 Professionals Trained Keep in touch with best practices - What are the most profitable geothermal companies doing and why? Everyone shouldn’t install geothermal 1 - Test your market 2 - Get the partners 3 - Create referral business
1. Testing your Market Potential Profit. 30k to 50k gross, 10-15% net profit. Could be a large opportunity, but only if you access to the right customers in the right markets. Your strategy should be to survey old customers and ask all new ones. Profile of the best and easiest geothermal customers Expensive fuel source: propane, oil, electric, biomass Larger then 2,500 square feet building Owns their home Large lawn/property Go to blog.heatspring.com/ACCANE to download a geothermal site visit checklist that will help you profile and quality customers.
Testing Market Goals Youre only goal is to schedule a site visit. Tag lines to get customers interested: “Reduce heating bills by 70%” “Geothermal has better returns then the stock market” Better then 10% returns. 20k invested will save at least 2k every year, for the next 30 years. “If you use a traditional system, you’re going to be spend XX amount in the next 20 years.” It will usually be well over $100k
Goals Don’t try to learn everything or become an expert Get a site visit. Get to a place where you are confident you can make money before investing energy Once you have a site visit --> Get in touch with partners
2. Partners Distributor - Supplies equipment, will help with design Driller - Drillers License, experience with closed loop systems HVAC Contractor - Duct and Refrigeratant license Electrician
3. Create referral business Most profitable companies get more then 80% of business from referral Referrals from past customers and contractor partners Two Proven Tactics to Create Referrals Installation Video Case Study
Discuss What CustomersCare About Installation Video - Give 5 To Your First Client and To Contractor Partners Pictures of installation process and final job Interview with homeowner Case Study in 2 to 3 Pages Economics of Job Customer Motivations Photos
Review 1 - Test your Market - Don’t invest too much money, survey old customers, get a site visit 2 - Establish Relationships with Partners 3 - Create Referral Business - Create material that customers care about to assist with word of mouth.
To know GEO is to LOVE GEO! What Does the US EPA have to Say About Geothermal Heat Pumps? Lowest Cost Heating & Cooling Best for the Air Environment Best for Electric UtilitiesEPA Report 430-R-93-004 - Space Conditioning the Next Frontier
Efficiency measurement for… (Coefficient of Performance) Air-Source Top Pellet or Geothermal Heat Pump quality Wood Heat Pump Oil or Electric Stove Gas resistance Furnace heaters
System efficiency measurement for Top efficiency Today’s geothermal “Air-to-Air” heat pump has a Annual EER up to SEER of up to 17 31.7 Annual EER up to about 13
Today’s Geothermal Heat Pump Not what the “ads” claim Laboratory conditions can be achieved in the typical application!
Water-to-AirGeothermal Heat Pump Heat Pump Heater or Chilled AIR TO & FROMEarth Coupling House Heat pack use DESTROYS annual efficiencies!!! “Real time” delivery – As energy is extracted it is immediately delivered to the zone Average inside cost: $4,200 to $5,500/ton
Water-to-Water Electric tankGeothermal Heat Pump Heaters as “secondGreat for Retrofits & Vacation Homes stage” are Accumulator Tank also EVIL!!!Earth Coupling Heat Pump Heated or Chilled Water TO & FROM House Radiant Floor, Base Board, Fan Coils “Zone blind” delivery system – Maximum flexibilityAverage inside costs: $6,000 to $8,500/ton
The partial resistance heatdilemma! -ARI 210- FULL LOAD COOLING HOURS In cooling it’s a “no brainer” as both air-to-air and geo use electricity. (Compare a 16 SEER to a 31 EER)
The partial resistance heatdilemma! -ARI 210- FULL LOAD HEATING HOURS for New England
The partial resistance heat problem inNew England… GEO EVEN Pennywise and BEATS NATURAL Pound Foolish? GAS when you do it right! An 80% capacity geo system that uses electric resistance heat to make up the difference (20% of the winter) DOUBLES annual heating cost!!!! No better than an air-to-air ductless split!
The partial resistance heat problem inNew England… …AND Resistance Creates an electric power “peak” during Heat is winter design days! Futile! Translation – Running a heat pack (resistance electric) costs 4X’s the electrical energy to deliver the same amount of heat!!! DOUBLES LENGTH OF SIMPLE PAYBACK !
Geothermal Heat PumpsMake a Better Environment! Dirty bird! - One Gallon of Fuel Oil= emission of 21 pounds of Carbon Dioxide to the Environment! “The CLEANER blue flame” - One Gallon of propane or CCF of Natural Gas = Emission of about 10 pounds of Carbon Dioxide to the Environment But wait, there’s more!!! Typical geosystem reduces ADD 11.6 # of CO2 per overall carbon gallon/CCF for TRANSPORTATION of fossil by over 50% fuels to the home or business!
Safety Other BenefitsSomerset, MA •Home/building Resale •Aesthetics – Nothing on roof or outside •System Life – MTBF =48 yr. Small Syst., 19 yr. Large (PRCGloucester, MA Corp.) •Up to 19 Direct Leed Points •50% Carbon Reduction •High Efficiency Electric is…1.3 million households in “Fuel Neutral”Massachusetts served by natural •Bigger Project = Biggergas and there have been 12explosions in the past five years… ProfitsDept. of Public Utilities
The Daddy of all federal tax credits!Water Energy Distributors, Inc. - copyright 2012
Recognized types of Earth Coupling Closed Standing Open to Loop Column RecycleConductive Conductive & Advective Advective Water Energy Distributors, Inc. - copyright 2012
THERMAL EFFICIENCY Properly designed Earth coupling CLOSED LOOPS – Good thermal efficiency 32 F Winter 77 F Summer COP’s up to 4.0 & EER’s up to 27STANDING COLUMN – Better thermal efficiency 45 F Winter 65 F Summer COP’s up to 5.0 and EER’s up to 30 OPEN to RECYCLE – Best thermal efficiency 50 F Winter 59 F Summer COP’s up to 5.1 and EER’s up to 31.5 per ASHRAE/ARI/ISO design standards Category - 13256
Outside Earth Coupling Costs & Needs OPEN to RECYCLE -A lot of water and a $ 1,000 - $ 1,700 per ton good place to return it STANDING COLUMN -Bedrock, clean $ 1,800 - $ 2,500 per ton water and high static CLOSED LOOPS -More heat pump $ 3,200 - $ 4,400 per ton tonnage and ample site space Water Energy Distributors, Inc. - copyright 2012
What are we going to talk about ? Who is Skillings & Sons, Inc. The Mechanical Contractor and Well Contractor Relationship. Partnering up Ground Loop Construction and Logistics Regulations and Registration
HISTORY OF SKILLINGS Leroy Skillings founder of Skillings & Sons Inc started the company in 1971. In 1982 started drilling Geothermal wells in the Northeastern Massachusetts area. Primarily a well drilling company until 1986. Roger and Norman purchased the company in 1989. Today we currently employ over 50 employees and are a third generation company.
The “Mechanical Contractor” and“Well Contractor” Relationship
Whats Needed ForA Successful Project Good Communication Equipment Load vs. Building Load Good Engineering Responsibility of Design Good Timing Coordinating On-Site Construction
Important Factors of GoodCommunication The “mechanical contractor” needs to supply the building load AND equipment load to the “well contractor” Ground loops are always designed to the building load Piping is designed to equipment load Sizing The Heat Pump Closed loop 20% over load Standing Column to load
How deep does the drilling go…? Closed loop 140’ to 180’ per/ton Shorter is better but can be more costly (CASING) Standing Column 70’ to 125’ per/ton The “Well Contractor” can provide a total bore hole depth… Responsibility is on the “Designer” of the system. Whats the right pipe size…? The horizontals are to create low head on pump Verticals to meet Reynolds factor
Closed LoopStages of Installation Drilling bore holes Installing vertical loops Grouting Most driller meet .88 BTUH/ft Installing Horizontal Lines. Home run or reverse return Pressure testing system * Flushing and Purging * Needs to be 2 ft/sec MINIMUM
Open LoopStages of Installation Drilling the well Installing a temporary pump and performing a draw down test (UIC water quality test) Installing the appropriately sized pumping system Installing electrical, supply and return lines Completing inside components (how is left for the HVAC contractor?)
Regulations – Closed Loop 25ft from potential sources of contamination 10ft from property boundaries Closed loop – 50ft from drinking water wells * Local Board of Health *
Regulations – Open LoopCasing Minimum 15ft into bedrockCasing Grouted* Local Board of Health *
UIC RegistrationClosed LoopSkillings & Sons, Inc. will file the UIC registrationNo follow up required.
UIC RegistrationOpen Loop Skillings & Sons, Inc is not a geothermal system designer. Final system design and proper operation are the responsibility of others. Skillings & Sons Inc will help file the registration. The “Owner/Operator” is responsible for all necessary documentation, actions, etc. after the UIC has been filed.
Our Services Water Well Drilling Geothermal Drilling Well Pumps Water Treatment Water Testing Hydrofracking Amherst, NH 800-441-6281
Mike Brogan GEOTHERMALCase Study: Dover, MA 10,000 square foot residence
System Elements Geo is Modular! Package W-to-ASplit W-to-A Water-to-Water
Install Factors•Nothing outside to cover-up or landscape•No boiler or furnace•No flue venting/related construction•No hydronic or gas piping•No Oil/Propane tank•Easier to install than conventional•Single system for heating and cooling
Property Detail•10,000 Square feet of living space•PLUS 4 car heated garage•PLUS 4,000 sq. ft. – Heated Basement•2” X 6” construction•Open cell spray foam walls and roof•Not EnergyStar