Geothermal and your home: Is this or another green energy upgrade worth the investment?

As homeowners, we are always looking for new ways to save money and energy around the home. Geothermal energy is a renewable resource that is not only environmentally friendly but could also be an investment that saves you money in the long run. But is it right for you? Let's take a closer look at this and other green energy options available to you in Australia.

What is geothermal energy?

According to Geoscience Australia, geothermal energy is heat that is contained within the earth and that can be used to generate energy. It is completely renewable and can be continuously replenished during any time of the day or year. This makes geothermal energy unique when compared to wind and solar energy.

Australia, specifically, has great geothermal potential. Geoscience Australia reports that "temperatures of 30°C and above can be used in industry, agriculture and heating and cooling of residential buildings." This is known as a direct use application. 

What is the cost of geothermal energy?

The cost of installing geothermal energy sources in your home may seem steep in the beginning, and the price tag could vary based on the location and size of the product. For example, Direct Energy Australia reports that the "initial cost for the loop field and heat pump of an average-sized (14 kW) direct exchange system starts at about $10,000 to $15,000 beyond the cost of a typical reverse-cycle air-conditioning system."

Because of the drilling and land requirements, geothermal heat pumps can take a serious up-front investment that may not be worth it to some. However, energy.gov.au mentions that renewable energy can offer substantial cost savings compared to grid-supplied energy. If geothermal energy is not right for you and your needs, consider another green energy alternative like wind or solar. Your options include:

• Solar photovoltaic (PV) power: This is a very popular option for Australians. Well over 3 million rooftop solar PV systems have been installed in our nation as of November 9, 2021.
• Wind: When it comes to saving a coin, this is the best choice for those on a budget. More than 30% of renewable power in Australia comes from wind energy.
• Hydropower: Another great choice, hydropower comes from harnessing the power of water.

As more research and development goes into geothermal energy, it will become more accessible. And as a homeowner, renewable energy should be something that you consider not only for its environmental benefits but for its price-saving qualities and protection from a volatile price market. To learn more about homeownership, contact us today.