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Tuesday 20 September 2011

What Are The Financial Benefits Of Geothermal Power?

By James Khan


There are lots of renewable energy sources that are available now, from solar energy to wind energy. One of these is geothermal power, which extracts the heat from the ground in order to produce energy. We'll be looking at the environmental benefits and financial benefits of using this sort of energy.

Uses For Geothermal Power

There are two ways that geothermal power can be used, either to produce electricity or else to heat water with a heat pump. When it comes to electricity production, power stations using this sort of energy are rare as there aren't many places where it is very efficient.

If you are going to use a ground source heat pump though, you won't need so much heat so they can work anywhere. If they do not provide enough heat for your needs, then your regular boiler will be able to take on any additional heating needs.

Energy Efficiency

We'll be focusing on the use of heat pumps from now on, as this is the kind that people can actually make use of. So how efficient are they? Well, that is not actually the question that has to be asked as this takes in to account all energy inputs. But we don't have to provide all the energy that is needed to heat the water.

So what we really want to look at is the coefficient of performance of the heat pumps. This is a measurement of how much energy comes out of a system in comparison with how much we have to put in. A certain amount of electrical energy does have to be provided to get the pumps to work, but all of the heat comes from the ground, which we do not input.

Ground source heat pumps have got a coefficient of performance of between 3 and 5. What this means is that for every unit of energy we put in to it, we get between 3 and 5 times more heat energy out. If this was efficiency, then it would mean it would have a rating between 300% and 500%.

Environmental Advantages

Before getting to the financial benefits, we'll briefly look at the environmental benefits of this. As you will be getting a lot of your heat from renewable sources, it means that your carbon footprint is going to be cut significantly.

And the reason that carbon emissions are focused on so much is that it is the emission of CO2 in to the atmosphere which is driving global warming. By reducing the amount of conventional energy that you need then, you are reducing the amount of CO2 which is being emitted, and you're reducing the level of global warming as well.

Financial Benefits

Another consequence of requiring less energy from your conventional supplier of course is that your energy bills are going to be reduced. However, when trying to work out the financial advantages you'll have to consider how much the installation is going to cost as well of course.

When it comes to the cost for the installation of ground source heat pumps, that depends on what sort of installation you go for. If you get a vertical installation then that is going to cost the most, but on the other hand you'll also get more heat that way. The cheaper installation is the vertical one. Or even cheaper is the option to get an air source heat pump instead.

Very soon you will also be able to make use of a government scheme which is set to make heat pumps an even better investment. That is the renewable heat incentive, and it will work by paying you per unit of heat energy produced. It works in the same way as the feed in tariff does for solar energy right now.




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