Is There a Future for Geothermal Heat Pumps in Southern New England?

Dinesh Bhagani and Russell Johnson, Northeast Utilities
Robert Wirtshafter and Jonathan Weiss, Wirtshafter Associates, Inc.
Robert Bordner, Energy Market Innovations, Inc.

Keywords

Abstract

This paper provides an in-depth look at the future market for ground-source geothermal heat pumps in New England. It is based upon interviews with manufacturers, installers, new home builders, real estate professionals, and an array of related market participants. Building upon research undertaken primarily in Southern New England markets, we examine and discuss the market factors that impede the diffusion of this energy efficient technology. Factors that have been explored and will be highlighted include: strong local economy and consequent tight home building market, geographic and climatic conditions, inconsistencies in local code enforcement, changes in codes and building practices, and past experiences with older heat pump technology.

Cost and performance trends are discussed, as well as feedback obtained from homeowners using ground source heat pumps. Homeowners with systems installed in the past five years are overwhelmingly satisfied with these systems. Importantly, however, the paper also explores critical market barriers that result from limitations in the installation infrastructure for this technology. Drilling companies for vertical loop systems, for example, are in short supply and services are costly. Finally, building upon this in-depth examination, the authors address a variety of market transformation initiatives that may be pursued by manufacturers and energy service companies to spur the development of this market in New England.