Alberta Geothermal Energy Association Newsletter
Click here to read Summer 2010 Edition.
NRCAN Releases Proposed Amendments to Energy Efficiency Regulations
July 3, 2010 - Canada's Office of Energy Efficiency has recently released a bulletin concerning Natural Resources Canada's proposed amendment to Canada\'s Energy Efficiency Regulations for Chillers, Air Source Heat Pumps, and Electricity Reporting Requirements for Air Handling Systems, among others. These bulletins are being distributed for review and comment and can be found at this website. Comments are invited on each document as well as several others related to HVAC-R systems, all listed on the web link under the individual bulletin.
Terasen Leads the Geothermal Way
June 24, 2010 - On the corner of Summit and Springhill drives in Sahali sits brand-new condo development Summit Pointe. It's a beautiful building, but it's what you don't see that is fascinating - and energy- and money-saving.
Summit Pointe is one of seven projects in which Terasen Gas has installed a geoexchange system, which uses solar heat in the earth to heat or cool buildings...
Click here to read full article
Terasen Looks to Expand Into Clean-Energy Market
June 23, 2010 - Gas utility plans to launch bio-methane recovery program and may pursue the development of geothermal and solar energy systems...
Click here to read full article
CGC Complaints Mechanism Published
June 10, 2010 - The Canadian GeoExchange Coalition (CGC) today announced the publication of the CGC Complaints Mechanism. This formal process will be used to handle complaints filed by customers, qualified companies and other industry stakeholders. The complaints mechanism will also play an important role for CGC in its ongoing regular interaction with provincial authorities as the industry representative. Click here to read this press release.
Summary Report: Codes, Standards and Regulations
Montreal, June 1st 2010 - The CGC is pleased to announce the publication of a summary report of a national consultation conducted last year to assess the effectiveness of codes, standards and regulations in the Canadian geothermal heat pump industry.
Click here to read this press release and download the report.
CGC News – Class 43.1 – Open Letter
May 28, 2010 - Dear CGC members and other industry stakeholders,
In 2007, during the pre-budget consultations, CGC staff presented a brief before the House of Commons Finance Committee calling for the full inclusion of geoexchange technology under the Accelerated Capital Cost Allowance for Clean Energy Generation (Class 43.1 and 43.2). Through intense and sustained government relation efforts, CGC continued to work closely with government officials and our proposed amendments were announced in the 2008 federal budget. Two years later, the federal government has published the proposed regulations amending the income tax regulation (Capital Cost Allowance – Clean Energy Generation) for public comment.
This fiscal amendment is a huge accomplishment for the CGC. For many applications in the commercial and industrial sectors, the accelerated capital cost allowance advantages provided with this fiscal amendment will likely trigger many positive decisions to install ground source heat pumps instead of traditional systems.
>> Click here to access the CGC brief presented in 2007
>>Click here to access press release, draft regulations, and explanatory notes found on the Department of Finance website
CGC will be collecting comments from its members over the next weeks. Comments will then be organized into a coherent and cohesive format and officially forwarded. Kindly provide your comments before June 25 in order to give us enough time to prepare a final submission.
We wish to thank all CGC members for their continuing support in the accomplishment of our mandate.
>> Click here to view the Industry News in PDF format
Huge changes coming for B.C. builders and home buyers
Updated code will drive advances in everything from heating to plumbing—all to make the province greener - by TRISH BARNES, Cranbrook Daily Townsman
May 17, 2010 - What do solar roofs, purple pipes and heat pumps have in common? They're each examples of technology that B.C. builders will be turning to more frequently as substantial new building code requirements take effect in October, 2011.
On Monday, May 10, about 50 contractors, trades people and designers attended a workshop at the Heritage Inn with building science expert Murray Frank. On behalf of the Homeowner's Protection Office, a branch of BC housing, Frank went over Changes to Part 10 of the B.C. Building Code and Emerging Green Technologies, which will come out this December and be mandatory by next fall.
The most important change, Frank noted, is the requirement for all new homes to be EnerGuide rated at 80 or above. EnerGuide ratings evaluate energy efficiency. To get one, a certified Energy Advisor does a blower door test to measure things like insulation levels and air tightness, then uses software to arrive at a number. The higher the number, the more efficient the building. Frank said that homes built to current B.C. code standards are typically rated between 65 and 70, leaving a 10-to-15-point gap that builders will need to fill in order to sell their homes in 2011 and beyond. And the higher up the scale the points are, the more radical the changes are to win them. While it's easy — and relatively cheap — to insulate an empty attic to gain points, it's harder and more expensive to take a moderately efficient building and make it super efficient.
"These are huge changes compared to any code cycle I've ever dealt with," he said, noting that the code is moving toward performance-based evaluation — the EnerGuide rating — and away from prescriptive based evaluation.
Frank said builders will achieve the new standards by changing practices, materials and technology in nine main areas: windows, heat source, heat pumps, air-tightness, heat recovery ventilators, solar, efficient lighting, alternate structural systems and advanced insulation systems.
For example, Frank said natural gas costs are rising sharply but natural gas furnaces can, at most, achieve an efficiency of 96 per cent, whereas heat pumps — either air source or geoexchange — can achieve efficiency ratings of between 200 and 300 per cent. Installing geoexchange (formerly called geothermal) heat pumps is one way to gain coveted EnerGuide points and reduce greenhouse gas emissions (GHG) over the life of a heating system.
And greenhouse gas emission reduction is what the new code is all about. It's partially a response to the Climate Action Plan that the BC Liberals put together and which, at heart, is a commitment for the province to reduce its emissions substantially by the year 2020. The Hon. Rich Coleman, Minister of Housing and Social Development, recently went so far as to issue a challenge to the construction industry to "be building housing that is net zero for GHG emissions with superior air-tightness and insulation that will enable net zero energy performance through the addition of renewable energy generation such as solar panels."
What that means, said Frank, is that geoexchange, high-efficiency windows, heat recovery ventilators and better insulation will be common accessories to the houses of tomorrow. It also means that the Province expects B.C. builders to install 100,000 solar roofs in the next several years.
"Net zero is a house that produces at least as much energy as it consumes," Frank said, explaining that houses all over B.C. are well-situated to generate electricity through solar photo voltaic (PV) panels and through geoexchange and will soon able to plug into the electrical grid to both access and supply power.
"This isn't the stuff of science fiction anymore," Frank said, also noting that in Ontario, feed-in tariffs make it possible for homeowners to sell their surplus power back to the grid for more-than-reasonable prices. "With solar incentives bringing the installation cost down, and if the feed-in tariff kicks in, you could be looking at getting cheques from BC Hydro every month," he said.
While some builders may be scrambling come spring to achieve the 80 EnerGuide rating, Frank warned they shouldn't stop there: by the year 2015 the EnerGuide requirement will likely be 85 — or even higher.
And as for the purple pipes mentioned at the start of this piece? They are like a second plumbing system that collects and re-directs gray water (water that's been used in sinks and showers) back into toilets for re-use within the home.
Frank said the government is introducing a stringent new water conservation mandate through the code changes. Soon, 50 per cent of all new municipal water demand will be met through conservation, including installing systems that collect and reuse gray water.
The goal of the code changes, Frank said, is to reduce the environmental footprint of buildings throughout their life-spans. While there is concern about the upfront costs, he said it's an equation of "pay more now, cost less to operate later." To make it easier for builders to sell homes that cost more up front, Frank said the government may also require all homes — new and old — to have an EnerGuide rating before they are sold, so buyers can assess what their energy costs will be and buy accordingly. But he conceded that the new requirements — and the costs associated with meeting them — may not be embraced with gusto by buyers who look for "the most house for the least money."
Meanwhile, builders across the province will be busy finding ways to implement the changes and maintain their business edge in a new era of green building technology in British Columbia.
Are Tax Incentives Enough To Grow the GHP Market?
by Janneke Pieters, RenewableEnergyWorld.com Contributor
April 30, 2010 - North Carolina, United States [RenewableEnergyWorld.com] Despite the established benefits of geothermal heat pumps (GHPs) including 30- to 50-percent energy savings, minimal environmental impact, comfortable temperatures, quiet operation and a long equipment lifespan, convincing homeowners to fork out twice the cash to install one instead of a conventional heating and cooling system – especially when that system ostensibly performs the same function – hasn't exactly been easy in a down economy.
But recent generous federal and state tax incentives, industry analysts agree, will help grow the GHP market, even during tough economic times. "While people's ability to invest in their homes is diminished, as the housing market stabilizes, these incentives should encourage investment [in GHPs]," said Akash Shah, senior analyst at SBI Energy. "We still saw significant sales in the GHP market even during the recession," he said.
According to a recent SBI Energy report, "the geothermal market, which declined in value by 3 percent from 2007 to 2008, could rebound in 2010 given the substantial tax credits of up to 30 percent of total cost offered through the American Reinvestment and Recovery Act (ARRA) of 2009." With no upper limit and effective through 2016, the ARRA credit is a substantial increase from the tax credit under EPAct, which was 10 percent up to a $1,500 cap.
The ARRA tax credit for commercial GHP installations is 10 percent and allows for accelerated depreciation, making it as attractive an incentive as the residential credit, said John Kelly of the Geothermal Heat Pump Consortium (GHPC).
Crunching the Numbers
While GHPs have the lowest lifecycle cost of any heating/cooling system currently available, Kelly said, the upfront costs are greater than conventional systems, mostly due to the cost of burying the piping. A new geothermal heat pump costs an average $2,500 a ton, or about $7,500 for a typical 3-ton residential installation. Site preparation and drilling take the total up to between $17,000 and $20,000. Laying pipes horizontally – as long as there is space – costs less than vertical installations.
"The 30-percent credit closes the gap substantially between GHPs and conventional systems," Shah said. Without it, conventional heating/cooling systems are about half the cost of a GHP system.
On a $17,000 GHP installation, a 30-percent tax credit would knock $5,100 directly off a homeowner's tax bill, taking the total out-of-pocket costs down to $11,900. Figure in the 30- to 50-percent electricity savings compared to a conventional heating & cooling system's electricity use, and a GHP homeowner could recoup the differential in three to four years.
States also are offering tax credits, Kelly said: "Many states have created rebates or incentives that are similar to the federal incentives." New Mexico offers a 30-percent tax credit up to $9,000 per system, for both personal and corporate installations, through 2020. Montana likewise offers a $1,500 maximum tax credit for GHPs with no end date.
Utility rebate programs also pay consumers back for installing GHPs. The DSIRE database, an online resource of state and utility incentives for renewable energy, shows several utilities offer GHP rebates. For example, in North Carolina, Duke Energy and Progress Energy offer a $300 rebate for new home GHPs.
Are Incentives Enough?
The question is will consumers catch on to the technology, even as incentives abound and the economics of a GHP become increasingly attractive?
The United States is the current world leader with 959,000 GHP installations and 56 percent of the world's total installed GHP base in 2008, according to another 2009 SBI Energy report called Geothermal Energy Markets: Technologies and Products Worldwide. Sweden is second with 440,000 units in 2008. Germany came in third (6 percent), then Canada (4 percent), Switzerland (3 percent), and Austria (2 percent).
At a fraction of the size of the United States, these European countries, especially Sweden, have a higher GHP-density per capita. "One of the big reasons for the difference is there is a much different treatment of GHPs in terms of the regulatory environment," said Kelly.
In Sweden, geothermal technology began gaining traction more than 30 years ago, when the government funded several large heat pump demonstration projects. Currently, the government assists households to convert oil burning or electric resistant heating to GHPs or pellet burners. But according to an article by Mattias Tornell of the Swedish Energy Agency, higher oil and electricity prices have driven greater consumer adoption of GHPs, while subsidies are "tricky policy measurements."
Additionally, extensive research and development at Swedish GHP manufacturers and technical institutes and universities have resulted in "reliable and robust" heat pump technology which is important for market confidence, according to Tornell. While it has taken time, Swedish consumers are familiar and comfortable with geothermal technologies.
Building U.S. Consumer Confidence
In the United States, that confidence leaves something to be desired. "A lot of people are not familiar with [geothermal heat pumps]. They're reluctant to do it … if it increases the cost of the house. They're afraid to try something new," said John Lund, director of the Geo-Heat Center at the Oregon Institute of Technology.
Awareness of the technology is a big issue, Shah agreed. "Even though efforts to increase awareness are growing, there is a difference in the U.S. consumer mindset. The U.S. consumer tends not to think first of green solutions."
Adoption of GHPs in the United States historically has been more concentrated in the Northeast. "Most manufacturers are in the East. On the other hand, the growth rate out West is faster, in places like California, because there is a catch up phenomenon going on," Kelly said.
Western areas lack the necessary infrastructure, Lund said. "We don't have a lot of trained installers and designers [out West]. [GHPs] are more popular and stronger in the East because the infrastructure is stronger," he said.
Kelly agreed training and certification is a challenge. "With a 40-percent growth rate and the demand it creates, it is a challenge," he said. The International Ground Source Heat Pump Association (IGSHPA) provides training for system installers and designers. "They have seen their training increase way, way up from previous years," said Kelly.
Time will tell if the U.S. consumer will warm up to the idea of heating and cooling their homes with geothermal energy. While it appears there are plentiful incentives, customer adoption also depends on confidence in the technology, which will grow as more systems successfully come online and word about them spreads. That appears to be happening.
"What we hear from our members who install conventional heating and cooling and have expanded into GHPs," Kelly said, "is that if it weren't for GHPs, their business would be down."
Janneke Pieters is a freelance writer on energy, electricity and other issues. She is the former associate editor of Electric Perspectives magazine, published by Edison Electric Institute.
LIVESMART BC Program Extended
VICTORIA – The Province will extend provincial incentives for the popular LiveSmart BC: Efficiency Incentive Program for participants entering the program as of April 1, 2010, announced Blair Lekstrom, Minister of Energy, Mines and Petroleum Resources today. Click here for details about this announcement or click here to view incentives brochure for the extended LiveSmart BC: Efficiency Incentive Program.
Provincial Geothermal Associations formally launch cooperative relationship
 March 15, 2010 - The Provincial Geothermal / Geoexchange Associations of Ontario, Manitoba, Alberta and British Columbia entered into a Memorandum of Understanding (MOU) with one another on March 1, 2010. The MOU formalizes an intent to foster a coordinated approach to information sharing, education and promotion of geothermal / geoexchange technology in Canada. The parties will share resources, program delivery mechanisms and address issues of mutual concern, while reflecting the unique needs of Provincial and Regional organizations. Together, the Associations represent more than 500 Canadian geothermal contractors, designers and industry professionals from Ontario west. Of top priority is to emphasize geothermal technology as a viable and sustainable energy option for residential and commercial buildings.
The Associations will meet on a regular basis to discuss opportunities for their memberships. Each organization will appoint representatives to form an inter-provincial committee for the coordination and dissemination of information, events, written reports as required, and recommendations back to the Provincial Geothermal / Geoexchange Associations.
Additionally, the inter-provincial committee will liaise with government authorities, national and international organizations and related stakeholders in an effort to promote the market penetration of ground source heat pump technology.
Ontario Geothermal Association (OGA)
Manitoba Geothermal Energy Alliance (MGEA)
Alberta Geothermal Energy Association (AGEA)
GeoExchange BC
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