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Geothermal Air Conditioning: An interview with Jay Egg of Egg Systems

I want to thank Jay Egg for taking the time to answer my questions with his very busy schedule. Jay is the owner of Egg Systems International, a leading provider of geothermal air conditioning systems. Geothermal HVAC is a new technology for me, so I asked Jay to provide some background to the technology as well as some practical information for homeowners. For more information about Egg Systems and geothermal air conditioning, go to www.geothermalsolutions.info.

How does geothermal air conditioning work?

Outdoor temperatures fluctuate with the changing seasons but underground temperatures don’t. Four to six feet below the earth’s surface, temperatures remain relatively constant year-round. A geothermal system, which typically consists of an indoor unit and a buried earth loop, capitalizes on these constant temperatures to provide “free” energy. In winter, fluid circulating through the system’s earth loop absorbs stored heat and carries it indoors. The indoor unit compresses the heat to a higher temperature and distributes it throughout the building. In summer, the system reverses, pulling heat from the building, carrying it through the earth loop and depositing it in the cooler earth.

How long has geothermal air conditioning been available for homeowners?

About 35 years or more.

How much would the average geothermal HVAC system cost for a 2000 square foot home?

We find that systems costs range from $6000 to $9000 per ton. A 2000 foot home will need about 4 tons of air conditioning. The cost is between $24,000 and $36,000.

I noticed you cover Tampa, Orlando and Atlanta. In what areas is geothermal HVAC most viable?

In Florida, the high ground water table allows for a good heat transfer. In Georgia, the cooler Earth allow for a good efficient exchangers for the hot summers. Because of the relatively constant temperatures in the Earth, the viability is a close tie, in my opinion.

Geothermal Air-conditioning seems to work anywhere the you can drill for water, or to put in closed loop piping. The website http://www.epa.gov/Athens/learn2model/part-two/onsite/ex/jne_henrys_map.htm gives a good idea of what your starting temperature is. Anything above freezing, or below 90 degrees is worth the investment in my opinion.

How much land is needed for a homeowner to be able to place the required piping for geothermal air conditioning?

When it is possible, and especially when we have limited land, we recommend pump and reinject technology (click here for video: Pump and Reinject Technology).

What rebates and credits are available to help a homeowner afford to install a geothermal HVAC system?

The federal rebate is in the form of a tax credit equal to 30% of the cost of installation of the Geothermal systems. There are state and local incentives that are impressive as well: http://geothermalsolutions.info/residential_rebates.html.

What are the optimal scenarios for a homeowner to consider installing a geothermal air conditioning system?

I believe geothermal needs one of two scenarios:

  1. Customer is considering replacing the AC unit anyway due to age or upgrade needs. At this point the incentives and efficiency offer a remarkable payback to up sell to and Egg geothermal Air conditioner.
  2. New construction. It seems to always make sense to put a geothermal in during new construction.

The real key is that if you are in the market to buy an Air conditioning system, the federal rebates make it viable to upgrade to a geothermal Air Conditioner.

What are some recent advancements in the area of geothermal air conditioning?

Higher efficiency due to Variable speed blowers, and two speed compressors have pushed efficiency ratings into the 30EER range. This is 3 times the efficiency of much of the equipment currently installed, and twice the efficiency of geothermal systems that we started with in the ’90’s.

Other than geothermal air conditioning, what other green technologies do you view as most important in the coming decade for homeowners?

Photovoltaic and solar water heating are my personal best bets.

How did you find yourself in the world of geothermal air conditioning?

After serving in the Navy, I settled in Orlando. I continued my work in the HVAC field as the Service Manager of a Statewide company at the age of 24.

In about 1990, I thought that I had invented geothermal, or ground water cooled air conditioning. As it turned out, It had been around for quite some time, and Oklahoma State University had done extensive work in the design. I traveled there and was certified as a designer. It became the focus of Egg Systems. In about 1995, we began to expand our focus to other HVAC technologies. But we never stopped doing the geothermal Cooling.

When we heard about the Stimulus Package, we began to focus once again on this technology. We’re having a remarkable response to Egg Geothermal Air Conditioning marketing. Because of the unprecedented Rebate for Geothermal Credit in the new Stimulus Package, and our extensive experience over the past 20 years, Channel 8 in Tampa just filmed an Egg Geothermal Installation, and will air it as early as next week in a Green Segment of the news, and Channel 13 is asking for a spot. We have engineered millions of dollars worth commercial and residential systems, and we are currently under a backlog of dozens of Geothermal Air Conditioning units, some of which are being highly publicized. We have optimized our websites for geothermal HVAC.

Jay, his wife, Kristy, and 4 children reside in Hudson, Florida

Jay, his wife Kristy and 4 children (all wearing GREEN!) reside in Hudson, Florida

Final Thoughts. I want to thank Jay again for his time. Geothermal air conditioning is a fascinating alternative energy technology for homeowners that is gaining popularity as an option for homeowners upgrading to more cost-effective and environmentally-friendly HVAC systems.


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FAQ

Geothermal Basics

  • How does a geothermal heating and cooling system work?

  • What makes a geothermal system different from ordinary systems?

  • What are the components of a geothermal system?

  • How much room do I need for a geothermal system?

  • How efficient is a geothermal system?

  • Is the efficiency rating actual or just a manufacturer's average?

  • Do geothermal systems require much maintenance?

  • What does geothermal mean for the environment?


  • How does a geothermal heating and cooling system work?
    Outdoor temperatures fluctuate with the changing seasons but underground temperatures don't. Four to six feet below the earth's surface, temperatures remain relatively constant year-round. A geothermal system, which typically consists of an indoor unit and a buried earth loop, capitalizes on these constant temperatures to provide "free" energy. In winter, fluid circulating through the system's earth loop absorbs stored heat and carries it indoors. The indoor unit compresses the heat to a higher temperature and distributes it throughout the building. In summer, the system reverses, pulling heat from the building, carrying it through the earth loop and depositing it in the cooler earth.

    What makes a geothermal system different from ordinary systems?
    Unlike ordinary systems, geothermal systems do not burn fossil fuel to generate heat; they simply transfer heat to and from the earth to provide a more efficient, affordable and environmentally friendly method of heating and cooling. Typically, electric power is used only to operate the unit's fan, compressor and pump.
    What are the components of a geothermal system?
    The three main parts consist of the heat-pump unit, the liquid heat-exchange medium (open or closed loop), and the air-delivery system (ductwork).

    How much room do I need for a geothermal system?
    A geothermal system can be installed in nearly any application. An open loop only requires a few square feet for a well, while a closed loop may use most of a larger yard.

    How efficient is a geothermal system?
    A geothermal system is three to four times more efficient than the most efficient ordinary system. Because geothermal systems do not burn fossil fuels to make heat, they provide three to four units of energy for every one unit used to power the system.

    Is the efficiency rating actual or just a manufacturer's average?
    All heating and cooling systems have a rated efficiency from a U.S. governmental agency. Fossil fuel furnaces have a percentage efficiency rating. Natural gas, propane and fuel oil furnaces have efficiency ratings based on laboratory conditions. To get an accurate installed efficiency rating, factors such as flue gas heat losses and cycling losses caused by oversizing, blower fan electrical usage, etc., must be included.

    Geothermal heat pumps, as well as all other types of heat pumps, have efficiencies rated according to their coefficient of performance or COP. It's a scientific way of determining how much energy the system produces versus how much it uses. Most geothermal heat pump systems have COPs of 3-4.5. This means for every unit of energy used to power the system, 3-4.5 units are supplied as heat. Where a fossil fuel furnace may be 78-90 percent efficient, a geothermal heat pump is about 400 percent efficient. Some geothermal heat pump manufacturers and electric utilities use computers to accurately determine the operating efficiency of a system for your home or building.

    Do geothermal systems require much maintenance?
    No. Geothermal systems are virtually maintenance free. When installed properly, the buried loop will last for generations. And the other half of the operation-the unit's fan, compressor and pump-is housed indoors, protected from the harsh weather conditions. Usually, periodic checks and filter changes and annual coil cleaning are the only required maintenance.

    What does geothermal mean for the environment?
    Geothermal systems work with nature, not against it. They emit no greenhouse gases, which have been linked to global warming, acid rain and other environmental hazards. Egg Systems provides an earth-loop antifreeze which will not harm the environment in the unlikely event of a leak. And much of our product line uses R-410A, a performance-enhancing refrigerant that will not harm the earth's ozone layer.

Residential Geothermal Rebates

As a home owner you can receive a 30% tax credit on any Geothermal Heat Pump that meets or exceeds EnergyStar requirements. All Egg Geothermal Heat pumps Qualify for this tremendous tax Credit.
The tax credit applies to all the costs you incur when Egg Systems installs your new high efficiency Geothermal Heating and Cooling System(s).
You can file for the credit by completing the Renewable Energy Credits subsection on your tax return forms. If you are subject to the Alternative Minimum Tax, you can claim the credit on your taxes for the following year. No proof of purchase will be required; however, in case of an audit, you are encouraged to keep a detailed invoice of your investment on file. After your new Egg Geothermal Heating and Cooling System is installed we will indicate that it is a "Geothermal Heat Pump" on the invoice and note that it "Exceeds requirements of the Energy Star program currently in effect".
The tax credit is available through December 31, 2016. Consult your local tax professional for advice on taking advantage of the tax credit, as this announcement is not intended as a recommendation or endorsement of any financial strategy.
Helpful Resources
- See Federal Tax Credits for Energy Efficiency at Energy Star
- IRS form 5695 for 2008 Residential Energy Efficient Property Credit (note max credit amount limited to $2000 - no limit in 2009)
- More Information about the "Residential Renewable Energy Tax Credit"
- Find additional tax incentives that may be available in your state - Florida Home Owners Georgia Home Owners
Consult your tax professional for details.
*Form 5695 for the 2009 tax year not yet available.