Ottawa, Ontario - In Canada, the heating, ventilating and air conditioning (HVAC) market is dynamic and evolving. Electric utility deregulation, mandates for environmental protection, the emergence of "green" power alternatives, and a growing demand for housing and commercial space are signalling a shift in the HVAC market. For builders, contractors and architects, that shift is presenting new opportunities.
Forward-thinking builders and developers have already found that the Geo-exchange-technology that draws energy from the earth's crust through geothermal heat pumps offers an opportunity for long-term growth. Additionally, a newer technology called “DX” or “Urban geothermal” is making its way into areas where previous geothermal systems could not be installed: No longer are geothermal systems synonymous with vast excavations.
“The DX systems require no ground water and can be installed anywhere that we can drill a few small vertical holes. We can put them in the front yard or even underneath a new home. It's a win for the builder, a win for the consumer and a win for the environment," states John Lobb, of Earth Energy Solutions Inc, in Ottawa. "Customers like them for their superior comfort and very low operating costs. Additionally, the life span of this product is typically twice as long as conventional heating and cooling equipment."
Big Market, Bright Future – Urban Geothermal
Geoexchange has been building its share of the HVAC market for 20 years, gaining support in both the public and private sectors. Today, it captures only about one percent of Canada’s HVAC market. Market analysts expect that figure to grow to nearly seven percent in the next decade, driven by the demand for efficient, earth-friendly space conditioning. Current data supports a scenario of continued growth across all market sectors. Over the past five years, unit sales nationally have climbed at an average of over 22 percent per-year annually. Huge increases in natural gas prices are also helping drive demand. People are recognizing the advantages offered by these systems and the impact of that is being felt throughout the HVAC industry.
- Geoexchange is currently being used throughout Canada, the US and in several European and Asian countries. The reasons are clear:
- Geoexchange systems have a lower life-cycle cost than conventional systems.
- Residential systems can actually yield a positive cash flow when rolled into a mortgage – a fantastic selling feature compared to gas or oil heating.
- Geoexchange eliminates the homes greenhouse gas emissions.
- Geoexchange systems operating costs are typically one half or less than that of natural gas, oil or propane.
- All systems include Heating, high efficiency A/C and hot water capabilities.
- Geo-exchange systems are perfect for radiant floor applications.
GeoExchange From the Ground Up
Geoexchange systems take advantage of the natural energy present in the earth's crust. Because the temperature is relatively constant, the ground makes an ideal heat source or 'sink' for heating and cooling residential and commercial buildings. The relative simplicity of the system, and the fact that it draws on a renewable source of energy, has generated demand in both the residential and commercial markets-demand that savvy building professionals are moving to satisfy.
"The opportunities are significant," adds Lobb. "Consumer and government demand for cost-efficient, 'green' energy systems is putting pressure on builders. Builders, in turn, are consulting HVAC contractors about how best to proceed. The end result is that it gives both builders and heating contractors a chance to differentiate themselves in a competitive marketplace."
Reports From the Field
Contractors who sell Geoexchange systems report that customer satisfaction after the system has been installed is extremely high. But what may be most instructive for those considering a move into the Geothermal market is seeing how fast awareness is increasing. Geothermal is in the news regularly and is now supported by numerous government programs. And now that it can be installed on small lots, Canada’s most densely populated cities have become a whole new and untapped market.
Peter Baker and Mike Parlato, partners at Earth Energy Solutions, have both been working in the construction and HVAC market for 25 years. It was not until recently however, that they began to make urban geothermal one of their core products. After arranging dealer rights and product training, they started promoting their new geo-exchange products and it wasn't long before the phone was ringing and customers were ordering systems. Earth Energy customers range from residential to commercial to government projects. The Canadian manufacturer of the equipment, Maritime Geothermal, has a solid, reliable product which is CSA certified.
"It offers exactly what today’s customers are looking for: state-of-the-art HVAC technology offering unsurpassed comfort and efficiency." states Baker. “Earth Energy offers a technology whose time has come. Our customers consistently say they have never felt such a level of comfort as they do with the geothermal system. These things really perform very well…and inexpensively. We are operating these systems at a cost which is half that of natural gas at today’s prices. And with each rise in petroleum prices, our product looks better. Combined with the A/C and domestic hot water they also provide and you’ve got a very attractive package. Once a builder sees one in action, they realize it can give them the competitive edge they're looking for."
The Earth Energy Solutions team offers Geothermal consulting services and also acts as a resource for contractors, dealers and others who are interested in learning more about Urban Geothermal systems, radiant floor installations and commercial sized geothermal units. They can be reached at 613-839-1700. Their web site is located at www.EarthEnergySolutions.ca
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