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This in-depth guide explains the energy well, the profitability of the investment, and why a ground source heat pump is often the best choice for new construction and energy renovation.
In our previous guides we have covered heat pump technologies, which ingeniously harness the energy stored in the air. Now is the time to turn our gaze to the ground beneath our feet. There, deep in the bedrock and soil, lies a vast, constantly renewable and, above all, completely stable energy reserve. The technology that gives us the keys to harnessing this reserve is geothermal energy.
A geothermal system is not just a heating device; it is a comprehensive energy solution and one of the most long-term and productive investments you can make for your property. Although its initial investment is higher than other heat pumps, its superior efficiency, minimal operating costs and decades-long lifespan often make it the most sensible choice economically and operationally.
This article is a guide for those of you looking for a permanent solution for heating your property and want to understand why geothermal energy is the absolute number one choice for so many new builders and those doing major energy renovations.
Expert perspective: This article was written by Jukka Poikela, Renewe's leading geothermal expert. He has supervised and designed hundreds of geothermal projects, from single-family homes to large industrial properties, for over 15 years - and has a deep understanding of the geological and technical factors that ensure a successful and profitable geothermal investment in Finnish conditions.
Unlike air-to-water and air-to-air heat pumps, whose efficiency depends on the outdoor temperature, geothermal heat pumps utilize the constant temperature of the soil or bedrock. In Finland, the temperature of the bedrock at a depth of approximately 100 meters remains stable between +2 and +8 degrees, regardless of the season.
This energy is collected in a well drilled on your property, 100–300 meters deep. energy well (heat well). A collection pipe system is lowered into the well, in which a non-freezing liquid circulates. This liquid heats up underground and rises to the surface of the earth to the ground heat pump. The pump condenses the collected heat energy to a higher temperature using compressor technology and transfers it to the property's water-circulated heating system and the production of hot water. The cooled liquid returns to the well to collect new heat. Because the energy source is completely stable, the system operates with high efficiency every day of the year – even in freezing temperatures.
When evaluating a geothermal investment, it is essential to look beyond the purchase price and understand its life cycle costs.
1. Lowest possible operating costs: The geothermal heat pump has the highest coefficient of performance (SCOP) on the market, at best 4.5–5.5. This means that it produces up to 5.5 units of thermal energy for one purchased unit of electricity. The stable energy source ensures that the efficiency remains excellent even on the coldest days of winter, when other heat pumps have to rely more on electrical resistance. This results in the lowest possible electricity bill and the largest annual savings, which can be up to 80 % compared to oil or direct electric heating.
2. Exceptional longevity and maintenance-free: The geothermal heat pump itself is a technically very durable device, with a typical lifespan of 20–25 years. An energy well, on the other hand, is practically a perpetual investment. Once drilled, it will serve your property for at least 50–100 years. In the future, it will only be necessary to replace the pump unit itself, which makes the system's life cycle costs very low.
3. Significant impact on the value of the property: Geothermal heating is known to be the most desired and valued form of heating. It is a significant selling point that not only increases the value of a property, but also speeds up its sale time.
The suitability of geothermal energy depends on the energy needs of the property and the characteristics of the plot. It is an optimal solution especially in the following locations:
New buildings: For almost all new detached houses and larger properties with water-based heat distribution, geothermal heating is almost a self-evident and economically most profitable choice. The investment can be included in the total construction costs, and the low operating costs start to benefit the owner from day one.
Major energy renovations (detached houses and housing associations): When your old oil, gas or electric heating system reaches the end of its life, switching to geothermal is a strategic decision that modernizes the entire property. Although the initial investment is higher than in an air-water heat pump, it pays for itself in even lower operating costs, especially in large, energy-intensive properties.
Industrial and commercial properties: In large halls, production facilities and commercial buildings, the stability, efficiency and possibility of integrating cooling (geothermal) offered by geothermal energy make it a very attractive solution.
Buyer's quick checklist;
– Energy demand (kWh/year) and peak power demand
– Number and depth of wells, possible oblique drilling
– Electric storage tank(s): domestic water + buffer tank
– Distribution method: floor/radiators/both; control curve
– Cooling: passive/active, condensation
– Integrations: solar power, stock exchange control, automation
– Location: technical condition, sound levels, serviceability
– Permits, groundwater and yard restoration
– Warranty, maintenance, spare parts and remote support
– Support forms and household deduction: check the current conditions
In industrial properties, geothermal energy is particularly profitable in energy-intensive areas. A geothermal system for a 5000m² production hall requires 8-12 energy wells, an investment of €200,000-300,000. Savings compared to district heating can be €40,000-60,000 per year. Excess heat from process cooling can be stored in the wells for winter heating, further improving the overall efficiency.
In housing companies, a centralized geothermal heating system is profitable in properties with more than 20 apartments. The investment is divided among the shareholders, typically 3000-5000€ per apartment. Heating costs fall by 50-70%, and the value of the property increases significantly. The energy certificate often improves from class C to class A. Ground cooling increases living comfort in summer without an expensive cooling system.
In commercial properties, a combination of geothermal heat and geothermal cool replaces both heating and cooling. In shopping centers and offices, the system can work in both directions simultaneously: cool to the stores, warm to the office space. This so-called energy recycling improves the overall efficiency by up to 30%.
A geothermal project is a carefully planned whole. Drilling the energy well is the most visible step, but it is a surprisingly quick and efficient operation. Modern equipment and skilled drillers ensure that the work is done neatly and in a controlled manner, minimizing the impact on the yard.
Multiple wells, well spacing and small plots – practical solutions. In high-consumption projects, several wells are drilled. Sufficient spacing is left between the wells so that they do not “steal” heat from each other. On small plots, oblique/slant drilling can be used and the lower ends of the wells can be spread underground. The number and depth of wells are dimensioned based on energy needs, soil conductivity and cooling needs.
The drilling phase typically takes only 1–3 days. The drilling itself requires a permit from the municipality, which can be obtained by a professional supplier, such as Renewe, assists. In households, remember that it is possible to apply for a significant -35 – -60% for the drilling work and installation of a geothermal heat pump, household deduction.
Book a free geothermal survey, Renewe's experts will assist you in all stages of the project - from professional surveying and planning to high-quality installation and maintenance.
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What happens if there is not enough heat coming from the energy well? This is extremely rare in a professionally executed project. Before drilling, an accurate dimensioning calculation is always made based on the energy needs of the property. This ensures that the well will be deep enough and able to produce the required amount of energy. The bedrock in Finland is almost everywhere excellently suited for utilizing geothermal energy.
How much space does the drilling equipment require on the property and will it damage the yard? Modern drilling equipment is surprisingly agile and can fit into most single-family home plots. A clear space of about three meters wide and a few meters high is needed for the drilling equipment route and around the drilling site. Professionals protect the yard surfaces as best they can, and although inevitable dents occur, the marks can usually be cleaned up quickly after drilling. The effect is short-lived compared to the lifelong benefits achieved.
Can geothermal energy also be used to cool down? Yes, and this is one of the coolest additional features of geothermal energy. The system can integrate so-called ground cooling (or passive cooling). In summer, the cool liquid circulating in the energy well can be used with a circulation pump to cool the property via separate fan coils. This process is almost free, as it only requires the electricity of a small circulation pump. It offers a very energy-efficient and pleasant way to keep the premises cool in the summer heat.
Does geothermal heating work during a power outage? The basic system cannot operate without electricity because the compressor requires power. With a backup power system (generator or accumulator battery) the geothermal heat pump operates normally. A 5 kW aggregate is sufficient for most pump models. Equipped with energy storage solar energy system enables full energy self-sufficiency and island operation even during a power outage.
Geothermal energy or air-water heat pump? Both are top-notch systems, but their suitability depends on the property, budget, and goals. Here's a clear comparison to help you make a decision: