Cost is pretty important.
This sort of attitude bothers me. I'm not trying to run a race team. I am trying to save on energy costs. And the biggest downside to geothermal is the very high installation cost. This is compounded by the uncertainty of the outcome and my confidence is further diminished when I meet contractors who seem to want to price the installation based on how much money it will save me over ten years rather than how much it would cost to install with a reasonable mark-up.
Originally Posted by SkyHeating
It reminds me of a time 5 years ago when building contractors would try to price their jobs based on the effect of the project on your home value rather than how much it costs.
The savings just aren't big enough (considering the cost of installation) to justify this sort of headache unless you just want to be able to tell your friends you use a geothermal heat pump. I mean seriously, it takes at least 7-10 years to get back your money and that assumes zero time value of money. You get on a payment plan and you might not break even for 15+ years.
You really need something closer to 3-5 year payback to really get people on the bandwagon. Maybe the technology isn't there yet, maybe the industry is price skimming because there simply isn't enough demand to aggressively chase business, probably both. I don't think this technology or industry is mature enough to really attract a broader audience.
Why would anyone sign with you? If a large part of the value you provide is just coming up with the size of the unit, then how much value are you really adding overall?
Originally Posted by dorff
I think you need to revisit what your saying. Many homeowners look to geo to have a 3-5 year payback as you mentioned, a lot of times it can not be done, well then geo is not for you. I often see homeowners who are convinced geo is the way for them to go, and I always agree it should at least be considered, but it is NOT for all people, if you are price shopping you will likely get screwed and would be better off with a good air source or fossil fuel system.
Originally Posted by damuri
Second why are you looking at a 3-5 year payback for it to be attractive, how much are you getting on your investments year over year? a 3 year payback is a 24% rate of return! a 5 year paback is a 14.4% rate of return and a 10 year payback is a 7.2% rate of return. I would gladly take a guaranteed 7.2% rate of return that keeps me comfortable and has no noise and raises the value of my home over its full life that a hope that the stock market will return 8%. Secondly the money you save from geo is after tax, not before tax money so even at a 10 year payback that is a VERY good return.
Im sorry but you do not sound like somebody that needs a geo system, you want cheap so good luck. If you get a working system I am glad to hear, but if you go with the cheapest installer who does not size properly and does not know how to put in a ground loop and puts in a short loop and you run on backup heat and your bills go up, don't come here complaining.
Might want to pay heed to what Sky is saying... Those of us who have read his posts for years see he truly knows what he is talking about.
Quality work at a fair price with excellent customer service!
Romans Ch's 5-6-7-8
2 Chronicles 7:14
I didn't read through the whole thread but I would consider the new Carrier or Bryant Greenspeeds or Extremes
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