The Driller
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • CLASSIFIEDS
  • EQUIPMENT
  • SAFETY
  • VIDEOS
  • EDUCATION
  • SOURCEBOOK
  • EVENTS
  • SUBMIT
  • ABOUT
  • SIGN UP
cart
facebook twitter linkedin youtube
  • NEWS
  • Water
  • Geothermal
  • Construction
  • Environmental
  • Mining
  • All Industry News
  • EQUIPMENT
  • Rigs & Heavy Equipment
  • Consumables
  • Pumps
  • Featured Products
  • VIDEOS
  • Newscast
  • Drill Talks
  • Ask Brock
  • Emerging Drillers
  • EDUCATION
  • Drilling Business Insights
  • Reference Desk
  • Sponsored Insights
  • EVENTS
  • Conferences & Demo Days
  • Newscast LIVE
  • SUBMIT
  • Drillers @Work
  • ABOUT
  • Contact
  • Advertise
The Driller
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
The Driller
  • NEWS
    • Water
    • Geothermal
    • Construction
    • Environmental
    • Mining
    • All Industry News
  • CLASSIFIEDS
  • EQUIPMENT
    • Rigs & Heavy Equipment
    • Consumables
    • Pumps
    • Featured Products
  • SAFETY
  • VIDEOS
    • Newscast
    • Drill Talks
    • Ask Brock
    • Emerging Drillers
  • EDUCATION
    • Drilling Business Insights
    • Reference Desk
    • Sponsored Insights
  • SOURCEBOOK
  • EVENTS
    • Conferences & Demo Days
    • Newscast LIVE
  • SUBMIT
    • Drillers @Work
  • ABOUT
    • Contact
    • Advertise
  • SIGN UP

Geothermal Technology - A Solution to Rising Energy Costs

January 2, 2008
This tremendously fast-growing market demand is creating a vital need for contractors and drillers.



The geothermal market is growing, which comes as no surprise to Mike Kapps, vice president of WaterFurnace Loop Operations in Indianapolis. During the years he has been affiliated with the company, Kapps has watched WaterFurnace grow from a company that did a few million dollars a year in geothermal systems to one that, today, reports annual sales of more than $90 million.

Kapps is quick to identify reasons for this growth. He cites rising energy costs and the subsequent search by consumers and business owners for less expensive alternatives to oil and natural gas to heat their homes and facilities as one important reason.

At the same time, homeowners and facility operators, who are increasingly more conscious of their environment, are turning to green systems that have less impact on the environment than do traditional heating and cooling systems. According to Kapps, “Geothermal technology is one of the best technologies out there. In fact, the installation of a geothermal system represents one of the easiest ways to help a commercial property owner secure Leadership in Energy and Environmental Design (LEED) certification.”

Geothermal heat pump technology taps into the moderate temperatures found just a few feet below the earth’s surface, and uses this relatively constant, renewable source for heating, cooling and hot water. A water-based solution is circulated through a loop system of underground pipes.

During heating, the solution absorbs the heat from the earth and transports it to the geothermal units in the building, where the heat is absorbed by a refrigeration system. Using refrigerant-to-air technology, the heat is distributed throughout the building. During cooling, the process is reversed, extracting the heat from inside the building and replacing it with cool, dehumidified air.

Geothermal technology lends itself to both commercial and residential installations. At WaterFurnace headquarters, for example, a pond-loop system and 41 WaterFurnace units provide all the heating and cooling for the 115,000-square-foot facility. In addition, the company uses radiant heating coils beneath its sidewalks to melt ice and snow in the winter, eliminating the need for salt and the time and effort to shovel.

Homeowners who install geothermal systems realize many of the same benefits commercial facilities enjoy, including lower operating costs for heating, cooling and hot water, enhanced comfort and humidity control, quiet and reliable operation, and having an environmentally friendly system. According to Kapps, a home that uses geothermal systems is up to 70 percent more efficient, depending on the price of fuel and where the home is located. “These are the benefits we provide to homeowners,” notes Kapps, adding, “We’re seeing residential sales of geothermal systems grow in both the new construction and retrofit markets.”

As a result, Kapps sees an increase in the number of drilling contractors who are getting into the geothermal market as a way to diversify their business. However, the demand for loop contractors continues to grow.

The growth of the geothermal market also has created a demand for drilling contractors – either as part of a turnkey operation or as independent subcontractors – who drill the necessary holes, install the loop and move on to the next job. “It’s a huge opportunity for drillers,” Kapps says. “Although this type of drilling may pay less per foot than a typical well drilling job, the average job is 600 feet – four 150-foot boreholes.”

Kapps advises contractors who want to include geothermal systems as part of their product offering to talk with their local utilities and heating, ventilation and air-conditioning (HVAC) dealers. Some utilities offer rebates for the installation of geothermal systems. These rebates range from several hundred to several thousand dollars. In addition, the federal government offers builders tax credits as high as $2,000 if new residential construction meets or exceeds conservation code standards. Homeowners, too, may qualify for federal tax credits of $300 when they install geothermal systems. The government also provides incentives to commercial property owners who specify geothermal systems for their buildings.

Contractors also should become familiar with local codes and state regulations that pertain to geothermal systems. According to Kapps, many states regulate the installation of loop fields and how they are backfilled. States that do not have regulations or codes often enforce the standards of the International Ground Source Heat Pumps Association (IGSHPA).

As WaterFurnace keeps pace with the increased demand for geothermal systems, the company continues to improve the systems it offers. “Our Envision series is the first geothermal system to offer a 30 energy efficiency ratio (EER), the highest efficiency rating in the market,” Kapps explains. “This compares to ratings in the mid-20s for most geothermal systems, and a 13 to 14 seasonal energy efficiency ratio (SEER) for non-geothermal systems.”

The system uses a single two-speed scroll compressor to provide the correct amount of heating and cooling to a home. The series’ wide range of products address the diverse needs of a variety of applications. “As a result, we’re able to sell units in the Caribbean and in Canada, serving two very different climates,” explains Kapps. “It really is a global technology that takes us around the world.”

In fact, Europe embraced geothermal technology before the United States, most likely as the result of higher energy costs there. Today, according to the European Union, ground source heat pump installation is up by 20 percent. WaterFurnace also is making inroads into the Chinese market, and exploring opportunities in South Korea, where the government is committed to considering geothermal technology with each new building project.

“Geothermal systems definitely are a significant investment for consumers and building owners,” asserts Kapps. “But, as heating and cooling costs continue to increase, people are learning about the technology and recognizing the benefits it offers. It’s exciting to be part of a worldwide industry that promotes an energy-efficient technology that is also good for the environment.”
ND

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • geotechnical drilling rig

    6 Onsite Phrases Environmental Drillers Hate

    Here are six phrases that highlight common frustrations...
    Markets
    By: Jeff Garby
  • Wayne Nash

    Pipe Stuck? Common Causes and Solutions for Drillers

    If you have drilled for any length of time, sooner or...
    Opinions
    By: Wayne Nash
  • submersible pumps, water well pumps

    Selecting and Sizing Submersible Pump Cable

    This article helps pump installers and servicers decide...
    Pumps
    By: Bob Pelikan
You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

The Driller Newscast: Coiled Tubing Drilling and the Future of Geothermal

The Driller Newscast: Coiled Tubing Drilling and the Future of Geothermal

The Driller Newscast: 21st Century Drillers | Part 1 DEMAND

The Driller Newscast: 21st Century Drillers | Part 1 DEMAND

The Driller Newscast, Episode 147: Global Geothermal Collaboration at NY-GEO 2025

The Driller Newscast, Episode 147: Global Geothermal Collaboration at NY-GEO 2025

The Driller Newscast: New York Geo Talks 2025 Conference with Hands-on Driller Education

The Driller Newscast: New York Geo Talks 2025 Conference with Hands-on Driller Education

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the The Driller audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of The Driller or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • demo of a DM450 drilling rig during a customer factory visit
    Sponsored byGeoprobe

    Built for You: Smarter Drill Rigs, Stronger Support, Bigger Opportunities

Popular Stories

MainPhotoTwoBrothers.jpg

Two Brothers' Journey Through the Drilling Industry

demo of a DM450 drilling rig during a customer factory visit

Built for You: Smarter Drill Rigs, Stronger Support, Bigger Opportunities

AI and Drought Concerns

AI’s Growing Thirst for Water and Power

The Driller Classifieds

COMPRESSORS

EAST WEST MACHINERY & DRILLING IS BUYING AND SELLING AIR COMPRESSORS, AIR BOOSTERS, AIR ENDS & PARTS
Company: East West Machinery

DRILL RIGS

LOOKING FOR LATE MODEL TOPHEADS & DRILLTECH D25'S
Company: Spikes’s Rig Sales

DRILL RIG PARTS

MEETING DRILLERS NEEDS AROUND THE WORLD
Company: East West Machinery

ELEVATORS

SEMCO INC. PIPE ELEVATORS
Company: Semco Inc.

GROUTERS

GROUTING EQUIPMENT - GROUT PUMPS & GROUT HOSE REELS
Company: Geo-Loop Inc.

PUMP HOISTS

SEMCO INC. - BASIC PUMP HOISTS
Company: Semco Inc.

WELL PACKERS

LANSAS PRODUCTS - INFLATABLE WELL PACKERS
Company: Vanderlans Lansas Products

WELL SCREENS

WELL SCREENS & SLOTTED PIPE
Company: Alloy Screen Works

Products

Water Quality Engineering: Physical / Chemical Treatment Processes

Water Quality Engineering: Physical / Chemical Treatment Processes

By carefully explaining both the underlying theory and the underlying mathematics, this text enables readers to fully grasp the fundamentals of physical and chemical treatment processes for water and wastewater.

See More Products

Subscribe to The Driller Newscast

Related Articles

  • Drilling Topics: Department of Energy Awards Funding to Accelerate Domestic Geothermal Energy

    See More
  • Side-by-side rigs install geothermal boreholes

    Geothermal Key to Austin’s Net Zero Energy Whisper Valley Project

    See More
  • 25 Ways To Cut Costs -- A Lot

    See More
×

Dig deeper into the drilling and water supply industry!

Build your knowledge with The Driller, covering the people, equipment and technologies across drilling markets.

SIGN UP NOW
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Classifieds
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

The Driller
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
The Driller
  • NEWS
    • Water
    • Geothermal
    • Construction
    • Environmental
    • Mining
    • All Industry News
  • CLASSIFIEDS
  • EQUIPMENT
    • Rigs & Heavy Equipment
    • Consumables
    • Pumps
    • Featured Products
  • SAFETY
  • VIDEOS
    • Newscast
    • Drill Talks
    • Ask Brock
    • Emerging Drillers
  • EDUCATION
    • Drilling Business Insights
    • Reference Desk
    • Sponsored Insights
  • SOURCEBOOK
  • EVENTS
    • Conferences & Demo Days
    • Newscast LIVE
  • SUBMIT
    • Drillers @Work
  • ABOUT
    • Contact
    • Advertise
  • SIGN UP