-ACCA NE-How to make $$$ Selling Geothermal

in New England

Chris Williams, Martin Orio

Roger Skillings, and Mike Brogan

Geothermal with Confidence

EARTH ENERGY

Chris Williams

Water Energy Distributors, Inc. - copyright 2012

How to Make Money in Geothermal Heat PumpsHow to test your market and reduce risk in the shortest amount of time possible.

HeatSpring5,000 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 market2 - Get the partners3 - Create referral business

Testing Your Market

1. Testing your MarketPotential 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 buildingOwns their homeLarge 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 GoalsYou're 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

GoalsDon’t try to learn everything or

become an expertGet 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. PartnersDistributor - Supplies equipment, will help with

designDriller - Drillers License, experience with

closed loop systemsHVAC Contractor - Duct and Refrigeratant

licenseElectrician

3. Create referral businessMost profitable companies get more

then 80% of business from referralReferrals from past customers

and contractor partnersTwo Proven Tactics to Create

ReferralsInstallation VideoCase Study

Discuss What Customers Care About

Installation Video - Give 5 To Your First Client and To Contractor PartnersPictures of installation process and final

jobInterview with homeowner

Case Study in 2 to 3 PagesEconomics of JobCustomer MotivationsPhotos

Review1 - 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.

Martin Orio, AI

What Does the US EPA have to Say About Geothermal Heat Pumps?

Lowest Cost Heating & CoolingBest for the Air Environment

Best for Electric Utilities

EPA Report 430-R-93-004 - Space Conditioning the Next Frontier

To know GEO is to LOVE GEO!

What is COP ? Efficiency measurement for… HEATING

(Coefficient of Performance)

Top quality Oil or Gas

Furnace 90%

efficient

Pellet or Wood Stove90%

efficient

Electric resistance

heaters100%

efficient

Air-Source Heat PumpAnnually

about 200% efficient in

New England

Geothermal Heat Pump

500% efficient all winter long

Real #’s at…

SEER vs. EERSystem efficiency measurement for COOLING

SEER = Seasonal Electrical Efficiency Ratio (fluctuating temp exchange)

EER = Electrical Efficiency Ratio (constant temp exchange)

Top efficiency “Air-to-Air” heat pump has a SEER of up to 17

Annual EER up to about 13Efficiency declines as outdoor air temp increases above 75 F!!!

Today’s geothermal

Annual EER up to 31.7With no efficiency decline due to outdoor air temp increase because it is not exchanging with air!

Real #’s at…

Today’s Geothermal Heat Pump

Laboratory conditions can be achieved in the typical

application!

Not what the “ads” claim

Water-to-AirGeothermal Heat Pump

Heater or Chilled AIR TO & FROM House

Heat Pump

Earth Coupling

“Real time” delivery – As energy is extracted it is immediately delivered to the zone

Heat pack use DESTROYS

annual efficiencies!!!

Average inside cost: $4,200 to $5,500/ton

Average install costs!Water-to-Air

Heat Pumps, ductwork,

earth coupling

and install starts around

$6,000/ton

Electric tank

Heaters as “second

stage” are also EVIL!!!

Water-to-Water Geothermal Heat Pump

Heated or Chilled Water TO & FROM House

Radiant Floor, Base Board, Fan Coils

Accumulator Tank

Heat PumpEarth Coupling

Great for Retrofits & Vacation Homes

“Zone blind” delivery system – Maximum flexibility

Average inside costs: $6,000 to $8,500/ton

Average install costsWater-to-Water

Heat Pumps, tank, radiant,

ducts, fan coils, earth-coupling,

etc. starts around

$8,000/ton

The partial resistance heat dilemma!

-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 heat dilemma!

-ARI 210-FULL LOAD

HEATING HOURS for

New England

For heating it is a different matter

ENTIRELY!

The partial resistance heat problem in New England…

Pennywise and Pound Foolish?

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!

GEO EVEN BEATS

NATURAL GAS when you do it

right!

The partial resistance heat problem in New England……AND

Creates an electric power “peak” during winter design days!

Translation – Running a heat pack (resistance electric) costs 4X’s the electrical energy to deliver the same amount of heat!!!

100% GEO system = Annual of COP of 4.5 or better!

80% GEO with resistance “back up” = Annual COP of 2 or less!!!

DOUBLES LENGTH OF SIMPLE PAYBACK !

Resistance

Heat is Futile!

Geothermal Heat Pumps Make 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

ADD 11.6 # of CO2 per gallon/CCF for

TRANSPORTATION of fossil fuels to the home or business!

But wait, there’s more!!!Typical geo

system reduces overall carbon by over 50%

SafetySomerset, MA

Gloucester, MA

…1.3 million households in Massachusetts served by natural gas and there have been 12 explosions in the past five years… Dept. of Public Utilities

Other Benefits• Home/building Resale• Aesthetics – Nothing on roof or

outside

• System Life – MTBF =48 yr. Small Syst., 19 yr. Large (PRC Corp.)

• Up to 19 Direct Leed Points

• 50% Carbon Reduction• High Efficiency Electric is

“Fuel Neutral”• Bigger Project = Bigger

Profits

The Daddy of all federal tax credits!

RESIDENTIAL “30% of the entire geothermal

install” Most N.E. states have utility

rebates too!

COMMERCIAL “10% tax credit and 5 year accel.

depreciation” USDA Rural Development

Grants DOER tax credits for municipal

designer/project managers

Water Energy Distributors, Inc. - copyright 2012

All required elements of your new construction or retrofit geothermal system installation are included…

EnergyStar rated unit(s) Hot water Tank connected

to geo HWG Earth-coupling Electrical Distribution Labor Permitting

Recognized types of Earth Coupling

Closed Standing Open to Loop Column Recycle

Conductive & Advective

Conductive Advective

Water Energy Distributors, Inc. - copyright 2012

THERMAL EFFICIENCYProperly designed Earth coupling

CLOSED LOOPS – Good thermal efficiency32 ° F Winter 77 ° F Summer

COP’s up to 4.0 & EER’s up to 27

STANDING COLUMN – Better thermal efficiency45 ° F Winter 65 ° F Summer

COP’s up to 5.0 and EER’s up to 30

OPEN to RECYCLE – Best thermal efficiency50 ° 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$ 1,000 - $ 1,700 per ton

STANDING COLUMN$ 1,800 - $ 2,500 per ton

CLOSED LOOPS$ 3,200 - $ 4,400 per ton

-A lot of water and a good place to return it

-Bedrock, clean water and high static

-More heat pump 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 LogisticsRegulations and Registration

Roger Skillings, CWD/PI, AI

HISTORY OF SKILLINGSLeroy 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

What's Needed ForA Successful Project Good Communication

Equipment Load vs. Building LoadGood Engineering

Responsibility of Design Good Timing

Coordinating On-Site Construction

Important Factors of Good Communication 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 PumpClosed loop 20% over loadStanding 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.

What's the right pipe size…?The horizontals are to create low head  on pump Verticals to meet Reynolds

factor                                                 

Ground Loop Construction and Logistics

Closed Loop System Open Loop System

Closed LoopStages of InstallationDrilling bore holesInstalling vertical loopsGrouting 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 InstallationDrilling the wellInstalling a temporary pump and

performing a draw down test (UIC water quality test)

Installing the appropriately sized pumping system

Installing electrical, supply and return linesCompleting inside components (how is left

for the HVAC contractor?)

Regulations and Registration

Regulations – Closed Loop25ft from potential sources of

contamination10ft from property boundariesClosed loop – 50ft from drinking water

wells* Local Board of Health *

Regulations – Open Loop

Casing Minimum 15ft into bedrock

Casing Grouted* Local Board of Health *

UIC RegistrationClosed Loop

Skillings & Sons, Inc. will file the UIC registration

No 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 ServicesWater Well DrillingGeothermal DrillingWell PumpsWater TreatmentWater TestingHydrofracking

Amherst, NH800-441-6281

EARTH ENERGY

GEOTHERMALCase Study: Dover, MA

10,000 square foot residence

Mike Brogan

System Elements

Split W-to-A

Package W-to-A

Water-to-Water

Geo is Modular!

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

Annual System Operating Costs

Remote Data Logger

60% savings in heating

Q & A

Thanks!