We're in the process of adding styrofoam insulation to the outside of our house. I've been doing some research and from what I've learned through the Manitoba Hydro web site and others from the states, the R 7.5 SM insulation that we're putting on the house should help reduce heating costs around 30%. We have also installed insulation below the heating pipes in the floor in the basement which will guarantee that the heat from the pipes go into the house instead of into the ground. We should be able to do about 60% of our heating through those pipes using an efficient water heating system that will send hot water through our heating pipes. We will be using a forced air furnace to do the rest of the heating (if it's necessary). According to the quotes that we received from our geothermal estimates (the people who were selling the units and would do the installation) we will be able to heat our house on an average year for about $1,600. This estimate was produced in order to show the savings we would receive by going with their geothermal units instead of a forced air furnace. This amount was based on a house our size, located in an open area with no trees, same amount of windows (double pane), R20 insulation in the walls, and using a low efficient forced air furnace. But since we are surrounded by trees, have installed additional insulation on the outside of the house, using an efficient in floor heating system, and a heat efficient air exchanger we are going to be looking at a lower bill then that. If we use the estimate from Manitoba hydro that we will be saving 30% by using the SM styrofoam on the outside of our house then we are looking at a heating bill of around $1,100 for the year. That's not taking into consideration that we are using a high efficient in floor heating system to do a high percentage of our heating. We have also bought Tri Pane windows in order to keep heat in which will be more efficient then the estimate we received from the Geo Thermal installers. We are also located in an area surrounded by trees and very little wind. This will also be a major help in keeping heat in. I am looking forward to seeing what how efficient our new house is. We would love to install a Geothermal unit next summer. That's what we are planning to do at this time, but we'll see how things look after this winter and what it will cost to install. If you consider that Geothermal costs $15,000 to install and we would be paying 4.6% interest on that money, the cost of geothermal would be:
$500 (operating costs, it was estimated $700 from the quotes we received) + $690 (interest over the year) = $1,190
So we would be paying more to heat with geothermal then with the system we are planning on using now. There is no savings with that and so we can't justify paying an additional $15,000 on a unit that will not save us money which will not pay for itself. If we can install the geothermal system ourselves next year for a much lower cost then it will be worth it because we wouldn't be paying interest on the money used for installing the unit.