How many years would it take for the geothermal system to pay for itself? Assume
that you are looking to install a new system, and that you can obtain a government
grant to do so. Use the costs that were mentioned on the previous page. Show all of
your calculations.
Installation Costs
• geothermal system: $20 000
• conventional system: $3500
• government grant for geothermal installation: $7000
Operating Costs
• geothermal: $100/month
• conventional: $150/month, plus $400/yr for air conditioning
however on previous page it stated: operate the hot-water tank is around $150 per month. Operating the heat pump would cost about $100 per month, but, without having to pay for air conditioner would save $400 per year.
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