The economic justification for switching to geoexchange is tremendously strong. From an economic perspective geoexchange is best understood as a financial investment, not just a home heating and cooling system.

Gas Flame $

Is your investment going up the chimney?

First you have to think about your current heating and cooling costs as a current investment. For example, a 2850 square foot home that burns propane gas and has an annual cost of $3556.00 for heating, cooling, and hot water costs. We tend not to think of the amount as an investment because we do not get a financial return. But with geoexchange that changes.

Over 10 years, at zero inflation, that home will cost the owner $26,920.00 in heating and cooling costs.  Over twenty years, at zero inflation, that home will cost the owner $53,840. Factor in 5% inflation and those numbers jump to $33,859 and $89,013.

By switching from propane to geoexchange, a homeowner would now have a financial return (savings) of $2,692.00 per year. They now have an additional $2,692 of disposable income.

An investment of $25,000 in a geoexchange system would pay for itself in 10 years at zero inflation. At 10 years, the ROI on this investment is 69% and at 20 years, it jumps to 238% . Add in an annual inflation rate of 5% and those percentages jump to 113% and 799% respectively.

Not only are the returns astronomical, but it is also one of the safest investments you can make. First your rebates reduce your portion of the investment by about one third!  Second, you are always going to have to heat your home and hot water. So you know that your initial out of pocket investment is going to be returned.


UMR has developed a 7 point financial analysis that provides customers with a comprehensive look at the specific economics for their home or commercial building. This analysis helps the customer to determine if geoexchange right for them.

Economic AnalysisSavings

Savings is the big economic driver behind geoexchange economics. A geoexchange system will pay for itself within a matter of years. And the savings will continue over the life of the home. So we provide the customer with an analysis of the savings between their current system and a geoexchange system.


Every geoexchange system, whether new construction or retrofit, is a custom designed system.Therefore, there is no “standard” pricing for a complete system. So we provide each customer with an itemized list of the components of their geoexchange system.

Having this analysis makes it easier for the consumer to compare estimates between companies. It allows the customer to see if the two bids are “apples to apples” in terms of design and equipment. It quickly identifies differences in system design that can affect cost…and quality!!

Rebates and Tax Credits

We search out every rebate available to each customer.

UTILITY REBATES – Most utilities provide rebates for the component parts of the system. The amount of the rebate varies by utility. Common rebates include:

  • Rebates for each loop that is put in the ground ($150 to $400)
  • Rebates for ECM Motors
  • Rebates for energy efficient furnaces and boilers
  • Rebates for energy efficient water storage
  • Rebates for tankless water heaters
  • Rebates for programmable thermostats

Out of Pocket Expense

Rebates typically reduce the cost of a geoexchange system.  We calculate the out of pocket expenses for each system so the customer clearly understands how much of the costs they will have to pay.

Pay Back

Pay back time for a geoexchange system varies greatly between projects. A wide range of factors such as type of fuel, current equipment, home efficiency, and system design can dramatically affect the pay back time on a geoexchange system.

The payback time for systems switching from propane or fuel oil typically range for 5 to 7 years. This means the entire out of pocket expense is recovered and the owner is now pocketing the annual savings.

The advent of cheaper natural gas due to fracking has driven the pay back time for systems switching from natural gas to between 6 and 18 years.

We calculate the pay back time based on zero inflation and 5% inflation to provide the customer with an accurate assessment of the pay back time on their specific system.

Return on Investment

The high level of energy savings combined with the reduced costs due to rebates give geoexchange systems a ROI which UMR will calculate for each system over a period of 10 and 20 years.


Financing a geoexchange system is often revenue neutral. That is, the annual monthly savings is equal to or greater than the the monthly payment on a loan. When combined with the high ROI, this makes financing a geoexchange system a “no brainer” from an economic perspective.

We have worked with the Center for Energy and the Environment (CEE) in Minnesota to develop financial options for our customers. The CEE is a non-profit organization that arranges financing for projects that reduce energy consumption and have a positive impact on the environment. They have developed several financing options for geoexchange. Their standard program offers financing at 4.99%.

Same As Cash

We offer a 12 months same as cash option on a system. The customer typically receives the rebates from the utility companies in one to two months.

Customers can select our same as cash option to cover a portion of the system. The program has no interest and no payments if paid back within the 12 month time period.