Condensing Boiler vs Geothermal Heat Pump: Cheap Heat Surprise

Many a home owner on the look out for somethingThe next step is to apply each appliance’s
new to replace an old, inefficient heating systemefficiency to its respective fuel price. But it’s not as
probably knows a thing or two about the exceptionalsimple as multiplying the fuel price by the percentage
efficiency of geothermal heat pumps. But few peopleof efficiency (95% or 350%). Instead you would use
are aware of the new 95% efficient condensingthe coefficient of each percentage as a constant to
boilers fueled by natural gas.keep the comparison apples to apples.
While a geothermal heat pump’s 350% efficiencyThe condensing boiler efficiency is 95% therefore the
far outstrips that of a 95% efficient condensing boiler,coefficient is 1/.95 or 1.05
higher efficiency ratings don’t always mean lowerThe geothermal heat pump efficiency is 350% so the
heating costs.coefficient would be 1/3.50 or .29
It’s only when the cost of fuel is factored in canFinally, the efficiency coefficient is multiplied by the cost
you determine the actual cost of heating for eachper therm of fuel for each system to determine which
system. In the example below the cost to produceone produces 100,000 Btu of heat for the least amount
100,000 Btu will be used to compare the systems.of money.
Since a geothermal heat pump runs on electricityGeothermal Heat Pump: .29 x $4.19 = $1.22 per 100,000
measured in kilowatt hours (kWh), and a condensingBtu
boiler is fueled by natural gas measured in therms,Condensing Boiler: 1.05 x $0.78 = $0.82 per 100,000 Btu
it’s necessary to convert kWh of electricity intoThe surprising results show that even though a
“therms” to make an accurate comparison.geothermal heat pump is 3½ times more efficient
One therm of gas produces 100,000 Btu so we needthan a condensing boiler the heat it produces is 49%
to know how many kWh of electricity it would take tomore expensive.
produce 100,000 Btu. Since one kWh = 3,413 Btu itThis paradox is brought about by recent low natural
would require 29.3 kWh to produce 100,000 Btu, or onegas prices and the high cost of electricity in New
“therm” of electricity.England.
Here in New England electricity goes for $0.143 perDepending on where you live, utility rates will vary from
kWh. So a “therm” of electricity would costthe ones used in this example but it should be simple
$4.19 (29.3 x $0.143). A therm of natural gas, accordingenough to substitute local rates for the ones here to
to National Grid, retails for $0.78.make your own comparisons.