Can you make money by digging holes in your yard?

Specifically, those holes should be four trenches, each 4 foot deep and about 6 foot long. That is one solution for “Geothermal” heat pumps to save 30% to 60% of the energy needed for conventional heat pumps. Geothermal just means that a blanket of dirt covers the coils of a heat pump and makes it more efficient. The Department of Energy estimates the extra investment, in some locations, could break even in 7 years and continue paying dividends for the 50-year life of the geothermal coils. The compressor has a longer life and lower maintenance costs than conventional units. So higher initial cost, but savings over time.

The geothermal systems are also considered better at heating and cooling in terms of minimal hot or cold spots and in terms of noise. So current owners of geothermal systems love the product compared to their older systems in terms of comfort.

Perhaps the better question should be: Should the average homeowner consider geothermal heat pumps? Many homeowners do not stay in their homes for more than 7 years. So, no, you likely cannot make money by digging holes in your yard. But the next homeowner will.

There is a win-win path to lower energy cost for the homeowner and higher profits for utility companies. What if the Utility company offered to dig the hole, maintain the coils and split the energy savings with the homeowner until he or she moves. So, no investment by the original homeowner, a better heating and cooling solution and potentially a lower energy cost for 50 years. But, for most homes, the next homeowner would pay the utility a higher cost of heating and cooling the home. That regulated cost would be less than the initial energy cost, but enough to provide the utility with a solid return on their investment.

What could be the tipping point for Utility companies to invest in delivering geothermal solutions to their customers with no upfront costs? There is a potential bill, HR 763, that will encourage companies to lower their carbon footprint. Essentially it increases the cost of carbon energy production but returns any price increase to the consumer. Now imagine that Bill is passed. A utility decides to make the investment to upgrade homes to geothermal and convert homes using gas to geothermal heat pumps. Thus, the return on investment is pushed higher due to the shift toward fewer carbon emission fees.

Finally, if the Utility Industry increases the volume of geothermal installations significantly, say by 10 times or more, research and development investments driving down the cost of geothermal installations would follow, leading to lower installation cost and a new high growth market.

Dandelion Energy is an example of a company that is driving costs down today and working with Utility companies to shift customers from gas to geothermal. In a September 17, 2020 interview of Dandelion CEO Kathy Hannun, Michelle Lewis of electrek reported that “Con Edison is partnered with Dandelion [in New York] and really promoted geothermal heat pumps to their natural gas customers because their natural gas system is constrained. So they provided incentives [for geothermal].”

A major shift to cleaner energy using geothermal heat pumps could lead to lower energy costs within 10 years. Consumer could enjoy a better heating and cooling solution and lower costs. The Utility could enjoy increased profits over 50 years and minimize any HR 763 fees as they shift to clean energy electric production. So win-win-win. Utilities gain higher profits, homeowners have a better heating and cooling solution and pollution is reduced from burning less natural gas.