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Geothermal Payback Calculator

Calculate payback period from utility savings vs conventional HVAC.

Inputs

$
$
%
$
$
%/yr

Results

Payback Period

7 years

Incremental Cost

$13,000.00

≈ 9 months of rent

First Year Savings$1,700.00
20-Year Savings$45,680.00
20-Year ROI251%
How to Use This Calculator
  1. Enter the total installed cost of the geothermal system.
  2. Input available tax credits and rebates.
  3. Set the annual energy cost savings from replacing conventional heating and cooling.
  4. Enter the expected system lifespan in years.
  5. Review the simple payback period and 20-year net savings.

How the result changes with Geothermal System Cost

Geothermal System CostPayback PeriodIncremental Cost
$19,000.004 years$5,300.00
$41,500.0011 years$21,050.00
$68,500.0019 years$39,950.00
$91,000.0021 years$55,700.00

What each input means

Geothermal System Cost
Total installed cost of the geothermal system.
Conventional System Cost
Cost of a conventional HVAC system replacement.
Federal Tax Credit
Federal geothermal tax credit percentage.
Annual Geo Energy Cost
Annual energy cost with geothermal system.
Annual Conventional Cost
Annual energy cost with conventional HVAC.
Energy Cost Increase
Expected annual energy cost increase.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Geothermal System Cost = 30000, Conventional System Cost = 8000, Federal Tax Credit = 30, Annual Geo Energy Cost = 800 = 6 input(s) provided
  2. Calculate Payback Period
    Payback Period
    7 = 7
  3. Calculate Incremental Cost
    Incremental Cost
    13000 = $13,000
  4. Calculate First Year Savings
    First Year Savings
    1700 = $1,700
  5. Calculate 20-Year Savings
    20-Year Savings
    45680 = $45,680

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