Geothermal heat pumps (GHPs), also referred to as GeoExchange, are declared as the most environmentally-friendly HVAC solutions available in the consumer market, as noted by The U.S. EPA and Department of Energy. Geothermal heat pumps are considered as one of the best market-ready and commercially viable technologies used to achieve clean and efficient energy conditions in residential, commercial, as well as government building applications.
Several U.S. states and many other countries have developed an interest in renewable energy heating and cooling in the past recent years, thus establishing favorable incentives and groundbreaking geothermal heating and cooling projects to reduce global warming.
Installation of Geothermal Heat Pumps by End-Use Industries
Geothermal heat pumping is a renewable heating technology utilizing the earth as both a heat sink and heat source. Heat pumps are a way of directly tapping into geothermal energy for heating a specific area in a commercial or residential building. The major adopters of geothermal heat pumps are residential and commercial users globally. Both these segments have been further sub-segmented into new building systems and retrofit systems and are expected to become popular among adopters by 2020. Since the use of geothermal heat pumps in the agricultural and industrial sectors is not strong, they are incorporated within the commercial sector, starting from a small-level to a large-scale retrofit. Estimating in terms of installed capacity, the retrofit segment is anticipated to exhibit attractive growth rates in the next five years.
A new market research report based on a study of the geothermal heat pumps market states that the global installed capacity for this market is expected to rise at a CAGR of 12.8% from 2014-2020 from a production figure of 52,638.18 MWt in 2013 to reach an estimated figure of 119,303.66 MWt by the end of 2020. In terms of revenue, the market will grow at a CAGR of 13.1% to reach an estimated US$130.50 billion by 2020.
Since the late 1940’s, the implementation of geothermal heat pump technology has been around in the energy market, rendering substantial energy and environmental benefits across numerous industry verticals. These days, people have increasingly started to understand the significance and environmental benefits of geothermal heat pumps over conventional systems.
Geothermal Heat Pumps Render Environmental Benefits Coupled with Considerable Cost-Savings
Due to the accelerated and wide-spread deployment of GHP systems in different regions of the world, tremendous opportunities exist to lower carbon emissions and reduce the global dependence on fossil fuels.
- GHP Renders Efficiency: Geothermal heat pumps offer low operational costs and reduce air and water pollution. In comparison to conventional systems, GHP systems use less electricity to perform the equivalent amount of work.
- Emits Pollutants and Greenhouse Gases: As analyzed by the EPA, GHP systems reduce carbon dioxide (CO2), nitrous oxides (N02), and sulfur dioxide (SO2) gases and also the need to extract natural resources or burn fossil fuels.
- Offers Human Health and Comfort: When properly installed, GHP systems pose no danger and are environmentally friendly. The systems emit no malodorous or combustible emissions as compared to conventional HVAC systems.
Geothermal Heat Pumps Mark Impressive Market Growth in Different Regions
The global acceptance of using geothermal heat pumps technology is manifested mainly in North America and Europe, with rapid growth gaining grounds in Asia-Pacific, especially China, in the field of renewable heating technologies. Other mature markets in Europe such as France, Germany, Sweden, and Switzerland have been using this technology for much of the past two decades. They are likely to register an annual increase in installations of air source heat pumps until 2020. Though the U.S. is also observed as one of the mature markets for this technology, not many home owners wish to front the cost of installing or introducing geothermal heat pumps in their buildings. This has caused the country to enter a temporary phase of uncertainty for the next few years.
Despite certain challenges such as the economic slowdown in the U.S. or declining annual capacity installations, super-efficient geothermal heat pumps are persistently gaining traction in countries like China, Japan, Sweden, Germany, and Denmark – where laws mandate that new construction projects must be minimally reliant on fossil fuel systems.