Halifax may be the sweet spot for geothermal heat pumps, according to researchers at University du Quebec and Dalhousie University. In an article that will appear in the Journal of Renewable and Sustainable Energy, the researchers compared the cost of installing a geothermal heating system in Halifax, Montreal, Toronto and Vancouver.
What they found was that in most cities, the low cost of traditional heat sources like oil or natural gas meant that installing a geothermal heat pump is less financially attractive. The one area that bucked this trend was the province of Nova Scotia, specifically, the city of Halifax. In Halifax, the cost of traditional heat sources like oil or natural gas is significantly higher than in the other cities examined, which makes a geothermal heat pump an attractive option for lowering annual heating costs.
Associate mechanical engineering professor Dominic Groulx and MBA student David Oliver published a research paper in 2010 comparing different energy technologies including wind turbines, photovoltaic panels, solar thermal water heaters and geothermal heat pumps. Groulx, who is also the director of Dalhousie University’s Laboratory of Applied Multiphase Thermal Engineering, found that Nova Scotian owners of single-detached homes heating with fuel oil or electricity can expect to save between $1,000 to $1,800 per year by switching to geothermal.
The paper estimated geothermal heat pump cost in Halifax to be $15,500 for a vertical closed loop geothermal heating system, with a water to air heat pump costing around $4,000. Based on the savings outlined above, your simple payback would be between 8.6 and 15.5 years.
But this doesn’t tell the whole story because Nova Scotia has a variety of rebates and financing programs available to take the sting out of that $15,500 upfront cost.
First, from Efficiency Nova Scotia is a $1,900 rebate available to all homeowners converting from electric heat. This discount is simple to apply for and will reduce your installation cost from $15,500 to $13,600. Right off the bat, this reduces your average payback down to between 7.5 years and 13.6 years.
If a $13,600 heating system upgrade is still out of reach for, Efficiency Nova Scotia and Nova Scotia Power both offer heat pump financing programs. If you choose to access the rebate from Efficiency Nova Scotia, you can’t access the 0% financing up to $15,000, because you can only choose either the rebate or the financing, not both. If this is the case, never fear! There is still a financing option available from Nova Scotia Power. Through NS Power, you can finance the full $13,600 for between three and ten years.
|
Interest Rate |
Term |
|
4.9% |
3 years |
|
4.9% |
4 years |
|
4.9% |
5 years |
|
6.9% |
6 years |
| 6.9% |
7 years |
|
6.9% |
8 years |
|
6.9% |
9 years |
| 6.9% |
10 years |
Source: NS Power
If you make use of these rebates and incentives, you could end up with a home heating upgrade that will be paid off in under ten years, even if you need to finance your installation. According to Groulx, geothermal heat pumps are expected to last between 22 to 26 years, and he adds they could last even longer. This means you’ll enjoy at least 12 to 26 years of highly efficient and inexpensive heating and cooling.
Want to learn more about heat pumps in Halifax? Find a dealer in your area for a free estimate today!