5 REASONS TO CONVERT

TO A GEOTHERMAL

SYSTEM

AND THEN

JUST 1 STEP

TO ENERGY

FREEDOM

.....TODAY!

SOLAR AND GEO COMBINE FOR A NEARLY NET ZERO HOME

This E-book starts with a brief overview of the technology. We will then explore the benefits

you will enjoy by converting to geo. I will make my case for why you should trust King Energy

LLC for your conversion. The appendix includes information about who we are and three

articles or excerpts from independent sources that I find illuminating and reinforcing.

TABLE OF CONTENTS

SECTION 1: Overview of the system ........................................................................................................................... 1

1.1 WHAT IT IS: ............................................................................................................................................... 1

1.2 INSIDE STUFF: (equipment and ductwork) ............................................................................................... 1

1.3 OUTSIDE STUFF: (ground loop) ................................................................................................................ 2

SECTION 2: The 5 reasons (Specific Benefits to our Customers) ............................................................................... 1

2.1 OPERATING COST SAVINGS .................................................................................................................. 1

2.2 ENVIRONMENTAL BENEFITS ................................................................................................................ 2

2.3 ENERGY SECURITY AND PRICE STABILITY ...................................................................................... 4

2.4 ENHANCED RELIABILITY, REDUCED MAINENANCE ...................................................................... 7

2.5 INCREASED RESALE VALUE ................................................................................................................. 7

SECTION 3: The 1 step (When to convert to geothermal) ........................................................................................... 9

3.1 CONDITIONS THAT MAKE CONVERSION MORE COMPELLING ................................................... 9

3.2 A GALLERY OF HOMES WITH GEO. ................................................................................................... 11

3.3 WHY US? .................................................................................................................................................. 16

SECTION 4: Appendix .................................................................................................................................................. 1

4.1 WHO WE ARE: ........................................................................................................................................... 1

4.2 INDEPENDENT STUDIES:.........................................................................................................................2

1

SECTION 1 OVERVIEW OF THE SYSTEM

1.1 WHAT IT IS:

A Geothermal Heat Pump (geo or GHP), is a refrigeration system much like other common and

familiar refrigeration systems. We have refrigerators in the kitchen, water coolers in our offices

and school hallways, central air conditioners parked next to our homes and huge commercial

water chillers in most of our office towers. While there are several variations on the theme, all of

these systems simply move heat from warmer to colder. They do not create heat. They move it.

Without getting into the vapor compression cycle, let's just say these systems can absorb heat

from over here, and put it over there. The refrigerator in your kitchen takes heat out of the box,

and sends it into the kitchen itself. They also can do this at 25% or less of the cost of creating

heat by burning fossil fuel. We are mostly used to refrigeration as a cooling process, but in

reality, it has a cooling and a heating component. It all depends on what you want at the time.

Reversing refrigeration systems can direct either heat or cool to the space as required. One of the

limiting factors of a refrigeration system is the operating temperatures of where it is trying to

remove or add heat to. Really cold and really hot can pose problems. By going geo, we can

limit the extreme temperatures and keep the refrigeration system optimized.

This is done by using an underground temperature 'sink' (this is the place we are either extracting

or rejecting the unwanted heat/cool). Most refrigeration systems utilize the outdoor air as the

heat sink. Depending on your climate, outdoor air temperatures may very well exceed the

efficient operating requirements of a refrigeration system. This leads to several negative

outcomes such as system inefficiency, equipment stress and reliance on a back-up system. When

it is 10 degrees outside, or 95 degrees, the refrigeration system has to deal with it, and it's not

easy. A geo system doesn't much care about the outdoor temperature, since underground,

temperatures don't often go outside of 35 to 75 degrees. A geo system has three components, the

heat pump, the distribution system and the ground loop.

1.2 INSIDE STUFF: (EQUIPMENT AND DUCTWORK)

Two of the three above listed

components are inside. The heat

pump and the distribution system.

The distribution is typically a

ductwork system. Some special

care has to be paid to the air flow

capacities and air sealing and

insulation of the ductwork, but for

the most part, geo systems are

compatible with most homes that

already have central air WELL SEALED AND ISULATED DUCTWORK

2

conditioning. There are also hydronic, mostly radiant, distribution systems, and these are fine as

long as the designer knows a geo water to water will not efficiently produce water much over

110 degrees.

The heat pump component is best thought of as a really large

refrigerator in your basement. It's really more of an appliance

than a furnace. No flue pipe or oil tank or gas lines. No

outdoor condenser. It's just a pretty box that we connect

power, ducts and ground loop lines to. It's protected by being

in the house, it's very quiet and it doesn't smell. Service is

minimal. It simply runs. To the left is a Hydron Module four

ton water to air, probably our most common unit. The

stainless steel body really looks great.

1.3 OUTSIDE STUFF: (GROUND LOOP)

The outside stuff is called the ground loop. The ground loop

is a length of high density polyethylene pipe that the geo

system uses as a heat sink. The plastic is essentially inert and

really tough. Through the piping, the geo system circulates propylene glycol, a non-toxic

antifreeze solution. It is a closed loop system, meaning there is no water consumption and no

concerns about pretty much anything. This 'heat exchanger' is used by the geo system to either

absorb or reject heat. It just accepts or rejects heat as the heat pump needs.

Ground loops come in two major flavors, horizontal or vertical.

There are many ways to design loops and some of the variables

are the heat of extraction or rejection, the pressure drop and the

pipe size and manifolding. We greatly prefer, whether vertical

or horizontal, that each individual loop comes into the building

to be manifolded in an accessible area. This enables us to prove

flow through each loop and in the advent of a problem, we can

identify and isolate the loop giving us problems. Let me

emphasize, problems are rare, but it's good to be able to do

something about it if it happens.

A FOUR TON WATER TO AIR UNIT

TYPICAL HORIZONTAL TRENCH

3

Horizontals are pipes laid in trenches, typically 4'

deep. We gravitate to multiple loops of 400' to 600'

using 1" polyethylene pipe, 160 psi. We have

installed systems that had certain encumbrances on

the area available that dictated fewer loops, and

longer, and that required us to up the pipe size to 1

1/4". We like the manifolds to be inside the building

but that can't always happen. The left side picture is

from a 15 ton job in Vermont. Due to the presence

of a pool, we had to run our mains out 150' away

from the home. From the vault, as we call it, the 3"

mains distribute to eight 1 1/4" loops, each 1500'

long. An exterior vault is rarely necessary, but I

think it gives you a good look at the manifold. To

give you some sense of scale, this system is roughly

three to four times the typical residential system.

(it's a really big house)

Vertical installations require a well driller to drill a 6" diameter hole in the ground anywhere

from 250' to 600' deep. The plastic pipe is then installed into the hole and the extra space is

filled with a grouting material. It is important to understand we are not using the water in the

well for the heat pump. The well is simply a place to put our heat exchange pipes. With a closed

UNDERGOURND VAULT, RARELY NEEDED

4

loop system, there is no potential for water quality or quantity issues. We also do not need a

place to dispose of the water. We actually don't care if the hole is dry.

Another aspect of the ground loop is the method employed to make perfect connections as

required underground. Ground loops do not tolerate leaks, and to insure perfect integrity of the

system, all connections are made using a heat fusion process. This tool squares the faces of the

pipe ends, melts them to 475 degrees,

and slides them together to produce a

'weld'. Like welding metal, the

resulting joint is stronger than the pipe

itself. Another aspect of all ground

loops is that there is nothing visible

above grade. Both horizontals and

verticals are completely underground.

BUTT FUSION TOOL

1

SECTION 2: THE 5 REASONS (SPECIFIC BENEFITS TO OUR

CUSTOMERS)

2.1 OPERATING COST SAVINGS

People are always attracted to geothermal heat pumps, at least partially, on savings. Who

doesn’t like to save money? Savings is a more complicated issue than most would

assume. When asked ‘How much will I save?’, I reply, ‘How much do you spend?’. A

geothermal system can be 30% or 50% or 70% more cost efficient than conventional

systems. However, 50% isn’t something that goes in the bank. 50% of what? There are folks

out there that spend ghastly sums on space conditioning, and others that are getting by really

well. Remember, half of a lot is a lot. Half of almost nothing is almost nothing. This brings me

to our strategy to treat the house as a system, which will be discussed elsewhere. Conservation is

far and away the first step. However, it is difficult or impossible to conserve yourself to comfort,

and after all reasonable conservation measures are in place, we can now talk about the benefits of

geothermal. Even after this, I still prefer to speak of savings not as an absolute dollar amount,

but in terms of $/btu delivered to the home.

Cost of fuel (100,000 btu/unit) efficiency $/100,000 btu

Oil $3.75 1.4/gal .82 $3.26

Propane $2.75 0.95/gal .95 $3.04

Electric Resistance $0.16 0.03413/kwh 1.00 $4.83

Geothermal Heat Pump $0.165 0.03413/kwh 4.00 $1.21

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

FUEL OIL PROPANE ELECTRIC GEOTHERMAL

Heating Costs per 100,000 BTU

COST

2

As you can see, geothermal heat pumps deliver heat into the space at under half the cost of the

nearest competitor. To be honest, you could design a super insulated passive solar home that has

so little heating requirements that cutting the heat bill in half would hardly matter. I say this only

to reinforce the idea that your savings will depend on your consumption, and I love reducing

consumption first. However, we have left the days where conservation meant ‘freezing in the

dark’. A comfortable indoor environment, especially in an existing home, requires a right sized

central system, and the best choice at that point is geothermal.

2.2 ENVIRONMENTAL BENEFITS

Reduction of emissions is one of the many benefits of geothermal systems. Typically heating

and cooling in today's homes uses carbon based fuel. When we burn something, the products of

combustion are spewed into the atmosphere. Carbon dioxide, nitrous oxide, sulfur compounds,

particulates and other pollutants change the composition of our air. Without getting into the

global warming/climate change debate (because I'm of the opinion no one truly understands all

of the complexities involved), it just seems prudent to me to minimize activities that most likely

have negative consequences we don't fully grasp.

We have many examples of products or activities once deemed safe that were shown at a later

time to be quite hazardous. Asbestos, PCB's, leaded gasoline, DDT, nuclear tests, Agent Orange

etc. are just the tip of the iceberg. Given our lack of a solid understanding of the ramifications of

using our air as a sewer, shouldn't we try to do it less? We have a proven ability to alter the

spaceship we live on, and often not for the better. The best description of the 'status quo' stance

is 'reckless'.

One of the important criteria for analyzing air pollution issues is the distinction between 'point

source' and 'non-point source' emissions. The former is a source where the emissions are

concentrated in one locality and the latter is a much more diffuse source of pollution. Think of

the power generated and consumed at a typical power plant, Then, I need you to think of how

many homes that power can satisfy. Whether fueled by coal, oil, natural gas or nuclear, this

happens in one place and any remediation measures can occur on site.

I'm not advocating nuclear although I do feel it might be the least destructive option temporarily.

My operative point is the concentration of power generation at one place. Whether we seek

carbon recapture and sequestration, or scrubbers, it is crucial the source of the pollution be

located in one spot. A single power plant can provide power to thousands of geo homes. There

are no emissions from a geo unit so any environmental degradation that occurs can be addressed

at the single generation site (point source).

Fossil fuel burners in individual homes like boilers and furnaces are totally different in this

regard. They are everywhere (non-point source) and there is absolutely no way they can be all

kept to any sort of clean environmental standards. They are subject to maintenance schedules

that may or may not be kept up. Keeping them ALL burning clean is the only defense, but there

are a lot of them, and it's ridiculous to think that in practice, they ALL stay clean. I've

disassembled my share of flue pipes that are obviously spewing air borne filth. Let's just say

3

they were not clean. (It makes me wonder about the emissions testing for my truck. My 2010

Nissan can't possibly be as dirty as a 30 year old oil burner, but I have to have it tested?)

Even if these remote burners were kept burning clean, a big picture remediation option like

carbon recapture is unfeasible. Cars, chainsaws, lawn tractors and any number of gasoline

powered tools emit pollution that is impossible to remediate short of outlawing the particular

equipment. Good luck getting that by Briggs and Stratton or Stihl, never mind GM, Ford,

Exxon/Mobil or just about anyone on Wall Street. I don't think we need to be perfect, but what

we need to do is pick the low hanging fruit. Your lawn tractor should be fine for now, as should

my chainsaw. Neither of us can do much about the car just yet. What we can do is stop burning

fossil fuel to heat our homes. If we all did, it would put a serious set of brakes on the whole

'coming off the tracks' feeling that we all share.

Let's focus in on CO2 emissions and how different choices for HVAC compare.

Calculating the level of reduction of CO2 emissions involves a fair number of steps to be taken

to compare various fuel options. We need to know the CO2 emissions for each fuel per common

unit of heat content. The unit commonly used is called a "therm." A therm is 100,000 btus. I

used data from a website:

http://www.carbonfund.org/how-we-calculate#Conversions

The raw data for CO2 content and then the final value (after equalizing for heat content and

efficiency) of pounds per therm for each fuel is listed below. The CO2 emissions for electricity

is a New England average. Regional differences are significant depending on the makeup of the

electricity sources (fossil fuel, nuclear or renewable). The national average is 1.22 lbs/kwh with

the lowest, Vermont at .0055lbs/kwh and the highest, North Dakota at 2.069 lbs/kwh. At first

glance, electricity is the highest CO2 emitter, but that would apply for using electric resistance

heat. Geothermal systems run at an annual average efficiency of 400%. The CO2 emissions

associated with a geothermal system is only a quarter of the listed CO2 emission for electric

heat.

Oil- 10.15 kg/gallon 16.24 lbs/therm

Natural gas 0.005 tonnes/CCF 11.02 lbs/therm

Propane 5.74 kg/gallon 13.32 lbs/therm

Electricity 0.728 lbs/kwh 21.33 lbs /therm

Geothermal heat pump 0.728 lbs/kwh 5.33lbs /therm

The percentage of CO2 emissions reductions achieved by going geothermal for heat is as

follows.

4

Oil 67.2%

Natural gas 51.6%

Propane 60.0%

Electric resistance 75%

On the air conditioning side, things are much simpler. Since conventional air conditioning and

geothermal use the same fuel source, the CO2 reductions are a matter of efficiency. For existing

units, SEER ratings (cooling efficiency) of 8 to 12 would include most units. For new

construction, SEER ratings of 16 would be for high quality conventional equipment. An average

SEER for a geothermal system would be 20. CO2 reductions achieved by going geothermal are

as follows:

Retrofitting older equipment- 40% to 60%

New construction with high quality equipment- 20%

2.3 ENERGY SECURITY AND PRICE STABILITY

The availability and price of energy is a huge concern for homeowners and businesses in our

area. The first line of defense against price spikes or shortages is conservation and efficiency. If

you need less, then you are less at risk. Geothermal heat pumps run at an average efficiency of

400%. This means 75% of the heat they provide is pulled from the ground. It is not subject to

price fluctuations, and it will always be there.

The next area of concern is the differences between fuels in terms of price, source and regulation.

Geo systems run on electricity. Electricity is produced in many ways. Coal and oil fired plants

are being retired and natural gas generation is on the rise. We still have nuclear plants. We get a

considerable amount of power from hydro, both locally and from Canada. Renewable sources

such as solar PV and wind are also on the rise. They are also sourced locally and from out west.

Power from renewable and nuclear sources has a much more stable price profile than fossil fuel

based sources. We are relying more on natural gas and it can be volatile. There is currently a

market glut for natural gas and prices are depressed. For now anyway, the natural gas market

price is set domestically and worldwide demand has very little do with pricing. That may

change. Fuel oil is the energy source that is most affected by global supply, demand and market

pricing. Events in the Middle East as well as increased demand from China, India or the

developing world can cause wild swings in the price of crude oil. Industrial missteps such as the

BP oil spill in the gulf or the Exxon Valdez accident also can disrupt the market for crude oil,

and these price swings are felt by the consumer directly.

Sidebar: (I always get a kick out of the infomercials touting "American energy resources". They

make it sound like Americans collectively own the energy. I can just imagine a trusted (and paid

5

for) voice, like James Earl Jones or Senator Fred Thompson, saying "Come my fellow

Americans and we will harvest God's bounty. Roll up your sleeves and together we will provide

for our children and our children's children". Absolute bunk! The oil that washed up on gulf

beaches wasn't yours or mine. It was BP's. Do they sound American? How about Royal Dutch

Shell drilling in the Alaskan arctic? Just because something is here doesn't make it ours. It also

seems that no matter how much oil they find, it's always the $100/barrel kind. They never seem

to find the cheap stuff. As for natural gas, China and Europe are paying three to four times our

domestic price, and as soon as facilities to liquefy natural gas are up and running, you can bet

lots of that 'American' gas is heading overseas. The windfall profits will end up in very few

pockets. Prices will equalize, but it is safe to assume our price will go up much farther than

theirs goes down. Don't fall for the industry fairy tales delivered by the info babe wearing a

corporate power pant suit who seems like Gwyneth Paltrow playing T. Boone Pickens. Drill

here, drill now! Really? If we want to do something for our children's children, we'll leave it

down there)

The other stabilizer for the price of electricity is state regulation. Since the power companies are

regulated monopolies, rate structures require approval from state regulators. There are some

market forces, mostly with the generation charges, that enable the consumer to shop on price, but

those also are subject to state oversight. Power from fixed cost, domestic sources combined with

regulation results in considerable stability in the price of electricity.

For the ultimate in security

and price stability, a geo

system can be mated with a

renewable source like solar

PV or wind. It is not feasible

to have your own oil well but

we have many customers

who have both geo and solar

PV. The economics work

out great, but these

homeowners absolutely revel

in the independence that such

a system affords.

RETROFITTED SOLAR PV WITH GEOTHERMAL

6

SOLAR PV WITH GEO SINCE 1987

GROUND MOUNTED SOLAR ARRAY

7

2.4 ENHANCED RELIABILITY, REDUCED MAINENANCE

Geo systems are simple. There have relatively few moving parts. There is no combustion and

no flue pipe to clean. All motors are a sealed bearing design that require no maintenance. There

is no tank to be filled. There is no equipment out in the weather either covered in snow or

baking in the sun or being eaten by mice. It is one machine that performs the whole job. When

compared to conventional heating and cooling systems, it is just simpler mechanically with fewer

things that can break. The only regular maintenance is air filter changes, usually on an annual

basis. I tell our customers to think of the heat pump as a large refrigerator in the basement. If

you want to be nice to your refrigerator, you will periodically vacuum the coils on the bottom.

That's the same as changing the air filter on our heat pump.

ASHRAE (American Society of Heating, Refrigeration and Air conditioning Engineers),

indicates the life expectancy of a geo system is 18 years (we have several at 30+) which exceeds

the life expectancy of furnaces and condensers. The underground piping should last forever and

never need replacement. The anti-freeze solution does not need to be changed. Since the

equipment is inside and under more controlled and limited variations in operating conditions,

system reliability is greatly improved compared to conventional systems.

2.5 INCREASED RESALE VALUE

The positive effects of a geothermal installation on a home's resale value are

considerable. Reduced operating costs is a prime benefit. The value added is listed in one study

as +8%, and another study indicates a $20 increase in value for every $1 reduction in operating

costs. Links to these reports are listed below. It has been my experience that these benefits are

seen across the board for geothermal installations and the trend is for these benefits to be more

highly valued going forward.

We see other benefits to home valuation occur in the retrofit market. People value new

equipment over existing equipment nearing the end of its useful life. New equipment means less

maintenance and more reliability. Since geothermal is inherently both heating and cooling, both

systems are updated and in some installations, the geothermal system also represents the addition

of central air conditioning where it didn't exist before, which clearly adds to the home's

value. Real estate appraisal is not precise. It is driven by customer sentiment which is hard to

pin down and changeable. To that end, I can relate experiences I've had concerning what makes

a buyer tick.

Some anecdotal evidence:

We did a job maybe eight years ago for a spec builder. We don't often work on spec houses

because of the budget demands, but this guy was pretty good. Turns out, he sold the house

during a difficult stretch of the market SPECIFICALLY because it had geothermal heat. For this

buyer, the house had to be geo. I can't say there are a lot of those buyers out there, but here's one

and I believe they are a growing segment.

8

I recently serviced a 10 year old unit that has a relatively new owner. Just met them. Prior to

looking at this house they knew nothing about geothermal. After some research, it became the

number one reason they wanted to buy the house, and they did.

We just finished a pretty good sized retrofit on a home changing hands. The new owners

contacted us prior to buying the house, and they maintain they were not going to buy it unless the

geo conversion was an option. It seems the previous owner went through about 4,000 gallons of

oil annually, and that expense was simply too much for the new owners.

We have another customer who was interested in buying a house with our heat pump in it. He

had no idea about this geo stuff. He called me in to meet and greet, and all went really well. His

one reservation about the house was the geo, but after living there for four or five years, it turned

out to be his favorite attribute of the home. Since the unit was by now 25 years old, he recently

decided to pop in a new one before the old one started acting up. There was no question in his

mind about staying with the geo.

We are in the process of completing a huge job for a vacation home. This place is big and

gorgeous and really special. The owner is a very successful money manager. The geothermal

system is expensive. The owner insisted on geothermal not so much for the money he will save

on operating expenses, but he felt this home would have very limited marketability unless he did

everything he could to reduce the heating/cooling costs for a potential buyer in the future. The

owner is confident he will recoup his investment by using energy efficiency to widen the pool of

potential buyers who could afford to own this home. With energy costs only rising, he was

afraid of building a 'white elephant' that only very few people could feed. This guy knows

money, and I like the way he thinks.

I think there is a strong segment of the buying community that is attracted to geothermal. It is in

line with the efforts to brand houses as EnergyStar or LEED. It still seems to be a customer

driven phenomenon, and it is my hope that energy efficiency will become a stronger factor in

peoples purchasing patterns going forward. It looks like it is moving that way.

Some websites:

Geothermal heating/cooling systems increase home resale value by up to 8%. See HowNews

http://paramountgeo.com/is-green-good-for-home-resale-value/

http://www.geothermalgenius.org/blog/will-geothermal-increase-the-value-of-my-home

http://thbes.com/blog/2011/07/heat-pumps-reduce-utility-bills-increase-home-resale-value/

Significant Savings & Added Property Value

http://www.dominiongeothermal.com/GeoThermal-Facts.html

Resale value is a really tricky business. Realtors and appraisers try very hard to assign a value

on a property and often use what are called 'comparable sales', meaning the selling price of

similar homes in a similar area. Depending on the level of activity in a given market,

9

comparable sales can be an effective barometer. If activity is really weak, it can be statistically

insignificant. Since geothermal is still a small segment of the housing market, it's effects are

very difficult to quantify. There is definitely a group of potential buyers for whom energy

efficiency is a crucial factor. How it fits in with other factors such as closet space and local

schools is unclear. Geo's relative importance to individual buyers varies dramatically.

A geothermal heat pump greatly enhances the ability of a borrower to make the required

payments. This fact may not be adequately represented in the bank formulations, but it remains a

hard and fast fact. Hopefully, more credit can be given in the future for the financial strength a

geothermal heat pump lends a homeowner. Maybe the bank can either lend more, or lend at

better terms. Even with not giving fair credit for the operating cost savings of a geothermal

system, having a new heating/cooling system definitely adds value, and that advantage will be

reflected in the selling price.

SECTION 3 THE 1 STEP (WHEN TO CONVERT TO GEOTHERMAL?)

3.1 CONDITIONS THAT MAKE CONVERSION MORE COMPELLING

This one is really simple. Unless you have a geothermal system, the time to convert is now.

You are already paying for a geo through high operating costs on your conventional system.

You just don't have a geo. Our contention is that anyone who doesn't have a geo system would

do well by converting to one. However, some situations are better than others. Here are a few

situations homeowners or businesses are faced with that open the door to strongly consider

converting to geo.

YOU ARE BUILDING A NEW HOME

For a new home, the incremental cost of

a geothermal heat pump is almost

negligible for a home getting heat and

air conditioning. The 30% tax credit

was designed to offset the extra expense

and in practice, it does

BRAND NEW HOME WITH GEOTHERMAL

10

YOU ARE PUTTING ON AN ADDITION

Additions can be challenging. You want to utilize what you can, but often the system needs to

be reconfigured to work correctly. New zoning or increased capacity are often items on the to do

list. This is a great time to look at the big picture and install a geo that services the whole project

well. Many things can change in a rehab/addition situation. Changes in the insulation levels and

window sizes all affect the HVAC system. We specialize in looking at the end product and

designing and installing a system to provide satisfaction to the folks who live there.

YOUR EXISTING SYSTEM IS PAST IT'S USEFUL LIFE AND NEEDS REPLACING

Replacing existing equipment costs money. It has

to be done periodically. This is a perfect time to

consider geo. While it is true that new

conventional equipment is more efficient than the

old stuff you are replacing, conventional

equipment cannot match the benefits of a geo

system. It's a classic example of having good

money chase after bad money. Why invest in 20th

century technology when 21st century technology

is available? This pretty Victorian is going

through an extensive rehab. The existing system,

boiler, condensers, air handlers, ductwork and

domestic water heater were all shot. We replaced everything with two three ton geo units and a

hybrid domestic water heater. Sure, it was expensive, but the owners were going to have to

spend quite a bit on the conventional option and not derive as large a benefit.

YOU WANT TO ADD CENTRAL AIR

CONDITIONING

Many homes and businesses do not enjoy

central air conditioning. It's a very desirable

feature. Instead of settling for the conventional

wisdom and installing an old style system why

not upgrade to geo and enjoy all of the other

benefits? This home had no AC and oil

baseboard heating. A complete geo/ ductwork

system is in progress, and not only will the

owners now have AC and a dramatically more

efficient system, they plan on the next step, a 10Kw solar PV system.

TWO THREE TON GEOS WILL HANDLE THIS HOME

11

YOU SIMPLY WANT TO DO YOUR PART TO MAKE THE WORLD A BETTER PLACE

This one's my favorite. I'm a

believer. I don't know much about

what is going on in Syria and Iraq.

I don't know much about the pros

and cons of fracking. I don't know

much about global warming.

How's the song go?, "Don't know

much about history...", but I do

know using less is good. From an

economic, environmental, safety,

national security or geo political

perspective, geothermal is clearly

the best option. This home's

owners replaced relatively recent

equipment with geo for the

savings, but also a prime

motivation was to do their part to be cleaner. They have two youngsters and they feel if they

don't do it, who will?

3.2 A GALLERY OF HOMES WITH GEO.

Geo homeowners come in all shapes and sizes, from the regular Joe to the Uber-wealthy. This

section is intended to drive home the fact that geo is for everyone. There are two odd aspects of

geo. The first is geo is invisible. Unlike solar or windmills, there are no identifying features

visible with a geo system. Sure, you could walk around an air conditioned house and note the

absence of outdoor condensers. Who's going to do that (besides me)? The second oddity about

geo is the persistent misconception it is only for rich people or tree huggers (or more likely, rich

tree huggers). I beg to differ. Geo is for anyone who pays a heating and cooling bill. The

following is a very incomplete sampling of our jobs. Whether big or little, old or new, new

construction or conversion, geo is for all of you. I hope this helps augment your confidence. It's

really true that real people of all stripes go geo!

I live in the quiet little town of Lebanon, Ct. The population is about 7,000. We have 26 geo

heat pumps running in this little town. East Lyme is a bigger town and we have 32 units running

there. Waterford has 30 but tiny Voluntown has 10. Voluntown and Lebanon are rather similar.

Both are rural and small towns and neither is fabulously wealthy. East Lyme and Waterford are

more desirable, wealthier, and they have more geo units than the two rural towns mentioned, but

not by much. My point is geo can and should be for everyone, and the geographic distribution of

our work indicates it is. You can't see the geo homes. Rest assured, they are there. Lots of

them.

NICE GEO CONVERSION. OWNERS WANT TO DO THEIR PART

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This is a beautiful cottage of about 2200' in Stonington. It has an EnergyStar rating and a four

ton geo system. One interesting aspect is the vertical well is actually in the middle of the

basement. It was drilled before the foundation went in. In these shoreline areas, often the

original building is demolished and the new building expands to the limit of the side yard

setbacks. This left no room for outdoor condensers, so the geo also solved a space problem. We

also added internet enabled thermostats and you can see the lady of the house checking on the

system status.

This is a 2,400 ft colonial in Lebanon built

in 1990. It has a four ton heat pump

running on a 1600' horizontal. This one has

no back-up heat source. For 25 years, this

home has proven a back-up system is not

necessary and a geo system can do the

whole job. That's a cold looking picture!

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This is a log cabin in Franklin that must be

30 years old. We yanked out the oil fired

baseboard system and ran a complete duct

system to not only convert to geo but

provide central air. Since the heat load is

high, the five ton unit is running on 3000'

of 1 1/4" horizontal loop. The exit space

from the house was limited, so we went

with three loops, each at 1000'

This is a brand new 'Deck House' in

Mansfield. It's sort of a

premanufactured timber frame kit

house. The style features wood finished

vaulted ceilings and mahogany all over

the place. Really nice. We have a three

ton and a four ton unit servicing four

zones and it's running on two 400' wells.

This house also features a three panel

ground mount solar PV.

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This one is a stunning riverside estate in

Middle Haddam that was converted to

geo. It's written up on our website, but

I just had to include it here.

This Cheshire home used to go

through about 4000 gallons of

oil per year. Just this spring we

converted it to a three ton and a

four ton geo system and we

fully expect tremendous results.

FIVE HEAT PUMPS SATISFY THIS COMPLICATED ESTATE

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This is a rather old, (might be 100 years), cottage

in Niantic that we were able to convert to geo.

The install included a complete duct system.

That part got tricky, but the owner is delighted

with the results. Being bigger would not add to

the charm of this home. It is really cozy and

comfortable.

This is another Niantic home. Niantic can be a

crowded shoreline town were the houses are

packed in pretty tight. It is new construction, but

the owners seemed to gravitate to a throwback

look. Something modern would look very much

out of place here. It's not big but it is really nice

and boasts a four ton geo system, EnergyStar

shell and is running on a vertical.

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This a very well thought out EnergyStar home in Lebanon that we did five years ago. It's about

2000' with three bedrooms. It has a four ton geo unit and the 10 kw solar PV is new this

summer. I recently talked to the owner and he is absolutely giddy over the performance of his

house and the geo system. He is really optimistic the solar will carry him year over year. He just

entered retirement and the efficiency of this house has a strong positive impact on his ability to

finance his retirement.

3.3 WHY US?

I could answer this question many ways. Either 30+ years experience or singular focus on

geothermal would be suitable answers, but I think it's best to let one of my customers answer the

question. Here we go:

"Well we are still amazed at the amount of money we are saving per year with your

system. With the tax credits, the rebate

from CL&P, the savings of not buying

$7200.00 per year in fuel oil; the

additional money we paid to switch

over to Geothermal we have recouped

this year. We see approximately a

$300 per month increase in our electric

bill in the coldest months of the

winter. This additional expense is

minor in comparison to burning 500

plus gallons of fuel oil per month

during the same periods and keeping

the temperature at 65 degrees or

lower. We stay at 70-72 degrees all winter, 65 degrees at night. The electric bills in the summer

are lower and not having the 6 window air conditioners is great. So we really recouped all of our

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investment in just over two years…..not five. We would have been happy to recoup the

investment in 10 years.

"We replace the air filters on a regular schedule and check/clean the condensation pump line. I

don't think anyone in an old home could resist, even if you have to take out a loan. Plus working

with your company is great…geothermal is the logical and only choice."

It still makes me proud to read that.

I often think potential customers feel they are going out on a limb when considering a geo

system. My hope is the above examples install confidence that you are not alone in choosing

geo. There is a robust demand for these systems as well as a strong network of support. The

above homeowners, and thousands more have been enjoying geo for in some cases 20+ years.

To rephrase a previous passage in this article, I'd like to huff up my deepest voice and declare,

"Come my fellow Americans, let us roll up our sleeves and together make a bright future

for our children and our children's children. There is a path. That path is conservation,

efficiency, geothermal and renewable energy. That path leads to savings, security,

reliability, independence and a cleaner and more sustainable way of life. That path is the

path we should take."

The one step you need to take to secure your energy future is to call Scot Rogers @ 860-

420-7134. From there, a plan tailored to your specific situation will be developed.

Thank you for taking the time to read this and I hope it helps. Please visit us @

kingenergyllc.com.

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SECTION 4-APPENDIX

4.1 WHO WE ARE:

King Energy LLC has been servicing homeowners interested in the benefits of geothermal

heating/cooling since 1983. Back then, there weren't many folks who knew about it, but the

technology is catching on, and we have over 30 years of experience with it. We have well over

1,000 installations under our belt, and you can be assured there is nothing outside of our

experience that could happen that we aren't ready for. I'd like to introduce myself and the other

two principals of King Energy LLC.

I'm Rick King and I installed my first geo system in 1983. I've been doing it

exclusively ever since. It's been exciting to see the industry advance and

gratifying to see the long term satisfaction our customers experience. We

have seen many iterations of government and utility support and a big part of

my job is to stay on top of current programs to the best benefit of our

customers. We want you, our customers, to enjoy every benefit available.

My favorite experience is when a customer from the 80's calls and says, "I

think it's time for a new one". No concern about maybe doing something

else. Just do it again. I guess they would know best!

This is Scot Rogers. He has been with the company since 2007 and does all

of our site visits, engineering and design, and estimating. He's essentially

the first face new people see from King Energy LLC. He brings an

interesting perspective to his role. Aside from having a degree in electrical

engineering and considerable experience in patent research, Scot's first

experience with geo was when King Energy installed one in the new home

he built around 2005. He liked it so much, he joined the company. His

experience in shopping for and owning a geo system gives him invaluable

insight into the concerns and anxieties new customers may be feeling.

This is Bob Moskites. He came on board in 2003. He's our operations

manager. He makes the job go smoothly. Be it scheduling or materials

handling, coordinating our subcontractors or keeping lines of

communication open with the customer, Bob runs each job. From start to

finish, Bob earns a customer's trust. Of the three of us, he's the one who'll

be invited to the end of job party. Most of our customers don't meet Bob

until the job starts, and by the end they realize he does the heavy lifting.

He's our go to guy, and all of our customers know it.

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4.2 INDEPENDENT STUDIES:

3

4

5

6

Measuring the Costs and Benefits of Nationwide Geothermal Heat Pump

Deployment- A progress report

Elizabeth C. Battocletti, Bob Lawrence & Associates, Inc., Alexandria, Virginia

William E. Glassley, Department of Geology, University of California, Davis, California

Abstract

The use of geothermal heat pump systems (GHPs) in the United States is marginal, despite

their high efficiency and minimal greenhouse gas emissions. To evaluate the consequences

of broader deployment of GHPs we are conducting a national cost-benefit analysis for 30

metropolitan regions. The three-year effort is known as the GHPsRUS Project (“Geothermal

Heat Pumps are U.S.”). In previous papers, we reported on the project’s basic approach and

progress in acquiring geological data needed to quantitatively model GHP design

specifications and cost. In this paper, we report on the progress of the GHPsRUS

Project.

Introduction

Geothermal heat pumps (GHPs) deliver reliable, cost effective, and energy efficient heating

and cooling. Among the most efficient heating and cooling technologies available, GHPs

use the relatively constant temperature of the earth to heat and cool buildings. GHPs may

also provide domestic hot water (DHW). GHPs are an important energy conservation

technology; they use significantly less energy than conventional heating or cooling systems;

about 70% of the total energy used in a GHP system is renewable from the ground

(GeoExchange, Undated).

According to the U.S. Environmental Protection Agency (EPA), GHPs can reduce energy

consumption—and corresponding greenhouse gas (GHG) emissions—by up to 44%

compared to air-source heat pumps and by up to 72% compared to electric resistance

heating with standard air- conditioning equipment (USDOE, Undated).

Conclusion

The U.S. GHP industry has a well-distributed national presence. Although currently small, if

encouraged to grow, the consequence would be national jobs and economic growth – this is not just a

Midwest or rust belt industry. The impact would be broad, since the industry is distributed over many

components of the economy – manufacturing, drilling, construction, engineering and design,

distribution, etc. Energy use and greenhouse gas emissions could be reduced significantly in nearly

all regions of the country. Results of the GHPsRUS Project to date are robust. Although specifics

are not currently evident several months prior to the project’s end, the overall impact is very heavily

weighted to the positive side.

7

Oak Ridge National Laboratory Report # ORNL/TM-2008/232

Executive Summary

More effective stewardship of our resources contributes to the security, environmental

sustainability, and economic well-being of the nation. Buildings present one of the best

opportunities to economically reduce energy consumption and limit greenhouse gas

(GHG) emissions.

Geothermal heat pumps (GHPs), sometimes called ground-source heat pumps, have been

proven capable of producing large reductions in energy use and peak demand in buildings.

If the federal government set a goal for the U.S. buildings sector to use no more non-

renewable primary energy in 2030 than it did in 2008, based on previous analyses (updated

and summarized in this report), it is estimated that 35 to 40 percent of this goal, or a savings

of 3.4 to 3.9 quads annually, could be achieved through aggressive deployment of GHPs.

GHPs could also avoid the need to build 91 to 105 GW of electricity generation capacity, or

42 to 48 percent of the 218 GW of net new capacity additions projected to be needed

nationwide by 2030. In addition, $33 to 38 billion annually in reduced utility bills (at 2006

rates) could be achieved through aggressive deployment of GHPs.

However, GHPs have received little attention at the policy level as an important

component of a national strategy. Have policymakers mistakenly overlooked GHPs, or

are GHPs simply unable to make a major contribution to the national goals for various

reasons?

This brief study was undertaken at DOE’s request to address this conundrum. The scope

included determining the status of global GHP markets and the status of the GHP industry

and technology in the United States, assembling previous estimates of GHP energy savings

potential, identifying key barriers to application of GHPs, and identifying actions that

could accelerate market adoption of GHPs.

Although the U.S. was once the world leader in GHP technology and market development,

European markets now absorb 2 to 3 times the number of GHP units annually as do the

U.S. domestic markets. Market growth rates in Europe, parts of Asia (China, South Korea),

and Canada exceed those in the United States. In terms of installed base of GHPs, the

United States still has the largest absolute number, but on a per capita basis many European

countries are ahead.

Today’s domestic GHP industry is better positioned for rapid growth than ever before. The

technology is proven, with an installed base in the United States exceeding 600,000 GHP

units. Tax credits for home and business owners investing in GHP systems were enacted in

8

October 2008 through 2016. Since 2007 one segment of the utility industry, the rural

electric cooperatives (RECs), have been able to obtain long-term loans with terms of up to

35 years at the cost of government funds from the U.S. Department of Agriculture Rural

Utilities Service (USDA/RUS) to provide the outside-the-building portion of GHP systems

to customers in exchange for a tariff on the utility bill, which would be more than offset by

the GHP system’s energy cost savings. In December 2007 Congress directed the General

Services Administration (GSA) to establish a program to accelerate the use of more cost-

effective energy-saving technologies and practices in GSA facilities, starting with lighting

and GHPs. A growing number of States offer tax credits or other forms of incentives for

GHP systems

The most important trade allies of the GHP industry, electric utilities, today are better

able to focus on peak load reduction and improved load factor, two key GHP system

benefits, than they were in the past when restructuring was looming. The industry’s

support organizations ─ the International Ground Source Heat Pump Association,

Geothermal Heat Pump Consortium, Inc., American Society of Heating, Refrigerating,

and Air Conditioning Engineers, and National Ground Water Association ─ are mature

and robust.

If the domestic GHP markets were to expand rapidly most of the segments of the industry

would be able to expand accordingly without creating bottlenecks. However, the GHP

system design and installation infrastructure would require special attention. Currently these

infrastructures only exist in some localities, and elsewhere customers lack access to the

technology.