Other Names for Ground Loop Systems

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1 Commercial Ground Loop Water Source Heat Pump Systems Presented by Alan Niles Commercial Regional Sales Manager WaterFurnace International Other Names for Ground Loop Systems Geothermal Ground Source Ground Coupled GeoExchange

2 Why a Ground Loop Heat Pump System Tax Incentives Lower Operating Costs Lower Life Cycle Costs Lower Maintenance Costs Why a Ground Loop Heat Pump System Tax Incentives Lower Operating Costs Need Building Loads and Ground Loop Design Software for Monthly Average Water Temperatures Lower Life Cycle Costs Need Ground Loop Installed Cost Lower Maintenance Costs

3 Federal Tax Incentives for Commercial GLHP Systems Tax Credits: with no limit until 1/1/2017 Energy Property Tax Credit: 10% of total system cost with no limit 10% grant available in lieu of tax credit Combine with solar and wind tax credits 2010 IRS Form 3468 Investment Credit Part III, LINE 12 r Energy credit: Geothermal heat pump systems Basis of property placed in service during the tax year that was acquired after October 3, 2008, and the basis attributable to construction, reconstruction, or erection by the taxpayer after October 3, $ 10% (.10) Federal Tax Incentives for Commercial GLHP Systems Tax Deductions: Energy Efficient Commercial Building Property Tax Deduction: ($1.80 per Sq Ft) Combine with other Qualified Section 179 Real Property Deductions A software model of 3 installed components: 1) the building envelop 2) the indoor lighting 3) the HVAC and hot water system compared to the minimum ASHRAE design. Combined, the 3 components must reduce energy by 50%. Or as individual parts, each component must reduce energy by %. Tax Deduction: If all 3 components meet or exceed 50% Energy savings If only the HVAC and Hot Water System meets or exceed % Energy savings $1.80 per square foot of entire structure $ 0.60 per square foot of entire structure

4 Federal Tax Incentives for Commercial GLHP Systems Tax Deductions: Energy Efficient Commercial Building Property Tax Deduction: Energy savings must be calculated using a qualified computer software approved by the IRS. Some approved software: DOE 2.2, E Quest, Energy Plus, Energy Pro, HAP, TRACE 700 Filing: This answer is copied from website: There is no special form to claim the deduction. The IRS instructions to business forms (e.g., Form 1120 for corporations, Form 1120 S for S corporations, and Form 1065 for partnerships) indicate that the taxpayer should include the amount of the deduction in the amount in the "Other deductions" line of the tax return. it is important that a taxpayer obtain and retain the necessary certifications and documentation to claim the deduction (see, IRS Notice for these requirements). Federal Tax Incentives for Commercial GLHP Systems Tax Deductions: Accelerated Depreciation: 1/1/2012 until 12/31/2012: 50% first year bonus depreciation with the balance on a 5 year MACRS depreciation 2010 IRS Form 4562 Instructions Part II Special Depreciation Allowance and Other Depreciation Line 14 For qualified property placed in service during the tax year, you may be able to take an additional 50% special depreciation allowance.

5 Federal Tax Incentives for Commercial GLHP Systems Example: New Construction: $2,000,000 to install geothermal heat pump system. Building occupied August 2012 (3rd quarter). 40% tax bracket when state income tax is included Tax Credit: $2,000,000 x 10% Credit = $ 200,000 Depreciable Basis: $2,000,000 ($200,000/2) = $1,900, Bonus Tax Benefit: $1,900,000 x 50% bonus x 40% tax rate = $ 380, MACRS Tax Benefit: $190,000 x 40% tax rate = $ 76,000 Total Tax Benefit for 2012: = $ 656, MACRS Tax Benefit: $304,000 x 40% tax rate = $ 121, MACRS Tax Benefit: $182,400 x 40% tax rate = $ 72, MACRS Tax Benefit: $109,440 x 40% tax rate = $ 43, MACRS Tax Benefit: $109,440 x 40% tax rate = $ 43, MACRS Tax Benefit: $54,720 x 40% tax rate = $ 21,888 Total Tax Savings: $960,000 Plus Tax Deductions from the Energy Efficient Commercial Building Property Tax Deduction Federal Tax Incentives for Commercial GLHP Systems Eligibility: Building located in U.S. Original use begins with taxpayer Building design must fall under the guidelines of ASHRAE 90.1 Energy Standard for Buildings Except Low Rise Residential Buildings

6 Why a Ground Loop Heat Pump System Lower Operating Costs Use the ground s constant temperature as the source of heat in winter and as a high efficiency heat sink in summer GLHP Operating Costs Basics 95 F Return Water 85 F Supply Water 10F Across the Cooling Tower

7 GLHP Operating Costs Basics One unit in each zone with individual local temperature control 79 F 95 F 87 F 95 F 90 F Return Water 85 F Supply Water Only 5F Across the Cooling Tower GLHP Operating Costs Basics 79 F Water to Water Unit Heat Recovery To OA AHU Snow Melt Domestic Hot Water Pre Heat 130 F or 160 F Hot Water 95 F 84 F 95 F 86.8 F Return Water 85 F Supply Water Only 1.8F Across the Cooling Tower

8 GLHP Operating Costs Basics Water to Water Unit 79 F 85 F Supply Water 95 F 95 F 84 F 86.8 F Return Water Boiler/Cooling Tower 20% to 25% of Total HVAC Operating Cost Operating Cost Basics Water to Water Unit Heat Recovery To OA AHU: 125 F Hot Water 79 F 95 F 84 F 95 F 86.8 F Return Water 85 F Supply Water Only 1.8F to the Ground Loop Supply Water approaches Ground Temperature

9 GLHP Operating Costs Basics Typical Water Source Heat Pump Cooling Performance GLHP Operating Costs Basics Typical Water Source Heat Pump Cooling Performance 33% Increase

10 GLHP Basics Typical Water Source Heat Pump Cooling Performance IMPORTANT Ground Loops approach ground temperature when the Building is not at Peak Loads 80% 90% of the time, building loads are at 50% or less of the Peak Load 33% Increase Installation Costs GLHP Design Basics

11 GLHP Design Basics NEED TO KNOW: From the Ground: Thermal Conductivity and Average Ground Temperature From the Building: Monthly/Daily Loads From the Equipment: GLHP Efficiency of Each Specific Heat Pump GLHP Design Basics The Ground

12 GLHP Design Basics Tm WET SOIL (0.96 sq. ft./day) or (0.40 sq. ft./hr) AVERAGE SOIL (0.6 sq. ft./day) or (0.025 sq. ft./hr) LIGHT DRY SOIL (0.26 sq. ft./day) or (0.011 sq. ft./hr) Depth in Feet GLHP Design Basics Thermal Thermal Conductivity Diffusivity Material (Btu/hr-ft-F) (ft 2 /day) Dense Rock Average Rock Heavy Soil, saturated Heavy Soil, damp Heavy Soil, dry Light Soil, damp Light Soil, dry

13 GLHP Design Basics Thermal Conductivity Test Required Test Duration A minimum test duration of 36 hours is recommended, with a preference toward 48 hours. TC Test: $8,000 to $12,000 Thermal Conductivity Test

14 Thermal Conductivity Test Thermal Conductivity Test

15 Thermal Conductivity Test Thermal Conductivity Test Drillers Need to Know to bid competitively

16 Thermal Conductivity Test Thermal Conductivity Test

17 Thermal Conductivity Test Thermal Conductivity (k) = (BTU/Whr) * W(watts) 4 x L(ft of loop) x Slope( F) Ground Loop Site Layouts

18 GLHP Design Reverse Return Piping for Ground Loop Each Bore hole has identical pressure drop So no balancing valves required under ground Ground Loop Site Layout

19 Valve Vault Ground Loop Site Layout 400 Foot Bore Hole Layout

20 Ground Loop Site Layout 400 Foot Bore Hole Layout Ground Loop Site Layout 400 Foot Bore Hole Layout

21 Mechanical Room Ground Loop Site Layout

22 Ground Loop Site Layout

23 Drilling Holes & Installing Pipe

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26 Vertical Loop Cross Section Typical vertical bore detail

27 Vertical Loop Pipe with U Bend Typical vertical bore detail Vertical Loop Pipe with U Bend Typical vertical bore detail

28 GLHP Design PE 3408 HDPE (High Density Polyethylene Pipe) 1 IPS SDR IPS SDR 11 2 IPS SDR 11 3 IPS SDR IPS SDR IPS SDR IPS SDR 15.5 Standard Dimension Ratio (SDR) is the Side Wall Thickness to the Pipe Diameter Ratio GLHP Design PE Pipe Cell Classification PE C PE: Polyethylene 3: Density ( g/cm3) 5: Melt Index (ASTM D 1693, ) Molecular Weight 5: Flexural Modulus 4: Tensile Strength at Yield 3: Environmental Stress Crack Resistance 4: Hydrostatic Design Basis at 23C C: Color and UV Stabilizer Typical vertical bore detail

29 GLHP Design Selecting Pipe Size for the Bore Hole GLHP Design Selecting Pipe Size for the Bore Hole Design Goal: 15 Ft H2O pressure drop for entire ground loop

30 Vertical bore without backfill Geothermal pipe Bentonite Grout backfill

31 Grout Standard Bentonite Grout = 0.43 TC Select Grout = 0.85 TC Thermally Enhanced or Thermal Select Grout = 1.0 to 1.4 TC Adding silica sand increases the TC but also increases cost in both material and time Grout

32 Grout 49 % Increase in Grout 600 Ton School Application - North Royalton, Ohio North Royalton Middle School

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34 Middle School, Ohio

35 Middle School, Ohio Built in Students 239,000 square feet 140 units (average size 3 tons ) 414 total tons 240 bore holes at 330 ft deep Middle School, Ohio Mechanical HVAC System was installed for $ 10 per square ft ($ 2.4 million). Ground Loop Portion Turn Key Cost: $ 500,000 $ 6.30 per foot of bore hole System projected to operate at 25 cents per square ft. System actually operating at 18 cents per square ft.

36 Murray High School New Public School built in 2006 Loop Field Layout Construction Cost Comparison 1 st Year Operating Cost Comparison High School Ground Loop Field boreholes Under North Parking Lot

37 High School Row of Vertical Loops High School Rows Connected

38 High School Back Filling the Trenches High School Finished Ground Loop

39 MECHANICAL SYSTEM SAVINGS Conventional System Bid: $19.00 / sq ft Ground Source System Bid: Mechanical/Plumbing bid: $3,065,161 Loop Field bid: $930,784 Total: $3,995,945 Mechanical Cost: $3,995,945 / 267,256 sq ft = $14.95 /sq ft Construction Cost Savings: 267,256 sq ft x $4.05 /sq ft = $1,082, Total Bore Hole Length: 316 holes x 300 ft deep = 94,800 feet of bore hole Ground Loop Installed cost: $930,784/94,800 = $9.20 per foot of bore hole UTILITY COST (First Year) Annual Geothermal System Utility Costs Murray High School Electricity = $156, (96%) Natural Gas = $6, (4%) Total = $163, Cost / sq ft = $163,026 / sq ft = $0.61 / sq ft Annual Utility Costs Comparable School, Salt Lake Valley Cost / sq ft= $0.86 / sq ft of which: Electrical = 77% Gas = 23% Yearly Operating Cost Savings $0.86 $0.61 = $0.25 /sq ft $0.25 /sq ft x 267,256 sq ft = $66, (29%) Annual Savings

40 Hybrid GLHP Systems Cooling Load is out of balance with the Heating Load Property Area is insufficient Reduce First Cost of the Ground Loop by taking advantage of the Part Load Operation of the Building Hybrid GLHP Systems Cooling Load is out of balance with the Heating Load Clark County School District (Las Vegas) 60% ground loop plus fluid cooler allows for winter, spring and fall operation on ground loop but runs a fluid cooler at peak loads. Lincoln Public Schools Boiler hybrid to eliminate anti freeze and the 30% pumping penalty from anti freeze.

41 Hybrid GLHP Systems Cooling Load is out of balance with the Heating Load Hybrid GLHP Systems Property Area is insufficient

42 Hybrid GLHP Systems Take Advantage of Part Load Operation Commercial Building Loads are only 50% or less of the Peak Load for 80% 90% of the Year Hybrid GLHP Systems Take Advantage of Part Load Operation 50% of the hours In the year 27% Flow 80% of the hours In the year 54% Flow 552 GPM System (2.8 GPM/ton) with VFD Pumping

43 Hybrid GLHP Systems Take Advantage of Part Load Operation Bin Weather Data: 8760 Hours/Year 205 Hours or 2.3% Hybrid GLHP Systems Take Advantage of Part Load Operation

44 Cooling Tower Project Hybrid GLHP Systems Project name: Description: Ground Temperature: Las Vegas Motor Speedway Media Center 64,000 Sq. ft. Vertical Loop w/ Cooling Tower ºF Cooling load: 4,500,000 BTUH (375 tons) EFLH (cooling): Heating load: 2,640,000 BTUH (220 tons) EFLH (heating): 400 Hybrid Loop Field W/ Cooling Tower Hybrid GLHP Systems Loop Details Hybrid Full Geo Number of bores: Depth of bores: 400 feet 400 feet Bore hole spacing: 25 feet 25 feet Loop field installed costs: $ 780,000 $ 2.1 million Building energy consumption/yr: $ 98,000 $ 92,700 Maintenance costs / yr: $ 11,856 $ 8,250 Summary Hybrid Loop installed costs reduced by $ 1,320,000 Operating costs increased by $ 5,300 / yr. Maintenance increase $ 3,606 / yr.

45 Hybrid Loop Field W/ Cooling Tower Hybrid GLHP Systems Loop Details Hybrid Full Geo Number of bores: Depth of bores: 400 feet 400 feet Bore hole spacing: 25 feet 25 feet Loop field installed costs: $ 780,000 $ 2.1 million Building energy consumption/yr: $ 98,000 $ 92,700 Maintenance costs / yr: $ 11,856 $ 8,250 Summary Hybrid Loop installed costs reduced by $ 1,320,000 Operating costs increased by $ 5,300 / yr. Maintenance increase $ 3,606 / yr. Turn Key Cost about $13 per ft of bore hole Pond Loops

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47 Surface Water / Lake Loop Pond Loop Great River Medical Center Burlington, Iowa 2002 ASHRAE Technology Award 1500 Tons in a 15 Acre Man made Lake

48 Ground Loop Software SOFTWARE VENDOR GLD2010 GLHEPRO 4.0 ECA Geo CALC GchpCalc GL SOURCE G L Design GS2000 LUND Programs Wright Loop Gaia Geothermal IGSHPA ELITE SOFTWARE, INC. BRYAN, TX FERRIS STATE UNIVERSITY, BIG RAPIDS, MI ENERGY INFORMATION SERVICES, Tuscaloosa, AL KANSAS ELECTRIC UTILITY, TOPEKA, KS GBT, Inc., Maple Plain, MN Buildings Group, Natural Resources Canada University of Lund, Sweden Wrightsoft, Lexington, MA Ground Loop Software 75.5 Connected Tons of GLHP s 97/77 F Summer; 28 F Winter

49 Ground Loop Software Ground Loop Software

50 Ground Loop Software 1.19 Thermal Conductivity 74.6 F Ground Temperature Ground Loop Software Basis of Design Alt # 1 Alt # 2 Alt # 3

51 Efficiency Effect on Ground Loop Loop Cost Impact Basis of Design Alt # 1 Alt # 2 Alt # 3 Basis of Design: 60 bore holes x 305 ft per hole x $10/ft Total: $ 183, Add for Alt #1: 60 bore holes X 5 ft per hole = 300 bore ft Plus 8 holes X 310 ft = 2,480 bore ft Total: 2,780 bore ft X $10/ft = $ 27, Add for Alt # 2: 16 holes X 305 ft = 4,880 bore ft Total: 4,880 bore ft X $10/ft = $ 48, Add for Alt # 3: 60 holes X 10 ft per hole = 600 bore ft Plus 16 holes X 315 ft = 5,040 bore ft Total: 5,640 bore ft X $10/ft = $ 56, Ground Loop Software Ground and Loop Information Building and Heat Pump Information

52 Ground Loop Software Ground Loop Software

53 Ground Loop Software Ground Loop Software Ground Loop Peak Water Temperature Design

54 Ground Loop Software Ground and Loop Information Building and Heat Pump Information Ground Loop Software

55 Ground Loop Software Ground Loop Software

56 Ground Loop Software Ground Loop Software

57 Ground Loop Software Ground Loop Peak Water Temperature Design Ground Loop Software If Guessing at 1.0 Thermal Conductivity

58 Ground Loop Software Using correct 1.44 Thermal Conductivity Saved 9,708 feet of bore hole drilling Ground Loop Software Hybrid with 20% Boiler Reduces bore hole drilling by another 10,384 feet

59 Ground Loop Software Ground Loop Peak Water Temperatures Are only for brief periods of time Ground Loop Software

60 Ground Loop Software Maximum Peak Loop Temperature in 30 years during the cooling mode Ground Loop Software Loop Design Using Original Peak Loop Temperatures and the resulting WSHP Efficiencies

61 Modify the Peak Loop Temperatures resulting in new WSHP Efficiencies (19.4 EER versus 16.9 EER) at the system s maximum peak. Now model the energy savings properly GLD 2009 Maximum Average Loop temperature during the cooling mode is even lower than 80F

62 WSHP Basics System Schematic WSHP Basics System Schematic I told you this is IMPORTANT

63 LEED NC Version 3.0 Energy and Atmosphere Credit 1: Optimize Energy Performance Points are awarded for exceeding the prerequisite energy performance for the entire building LEED NC Version 3.0 Energy and Atmosphere Credit 1: Optimize Energy Performance Baseline ASHRAE 90.1 for GLHP: 13.4 EER Most GLHP s at AHRI Rating (77 F EWT): 17.0 EER to 30.0 EER 20 EER = 49% Increase

64 Life Cycle Costs Life Cycle Costs

65 Life Cycle Costs Life Cycle Costs

66 Installed Las Vegas Schools Sep 09 - Aug 10 School Year Usage (kwh) Area (SqFt) Total Use (kwh/sqft) NWCTA 548 2,105, , Information Needed To Price the Ground Loop: Thermal Conductivity Test Building Loads GLHP Efficiency

67 Model the Building Operating Efficiency Properly IMPORTANT Take Advantage of Tax Incentives

68 Commercial Ground Loop Water Source Heat Pump Systems