The Low Carbon Diet That is Easy to Follow (Using Geothermal Heat Pump Systems) By Paul Bony Director of Sales & Market Development - Western Region ClimateMaster September 27, 2012

The Low Carbon Diet

There has been a dramatic increase in obesity in the United States from 1990 through –More than one-third of U.S. adults (35.7%) are obese –Colorado, one of the leanest states in the nation, just registered the highest obesity rate in its history. There are numerous Apps for the iPhone that now make it easy (OK easier) to lose weight –A 2012 study presented at the annual American Heart Association Meeting shows that overweight patients who used an electronic logging system were more likely to stick to a plan for successful weight loss

The Low Carbon Diet The Planet Also Has a Weight Problem (Too Much CO2) 2012 Established A Record Low for Arctic Sea Ice –Arctic sea ice just reached its minimum level for 2012 and it set a new record low, at just 3.41 million square kilometers, trouncing the 2007 record low of 4.17 million square kilometers. –in the 1980s summer sea ice would cover an area slightly smaller than the mainland United States. Now it is about half that.

The Low Carbon Diet Dr. Andrew Weaver, a climate scientist at the University of Victoria recently published the results of their efforts to model permafrost thaw and its effect on climate change. –Permafrost is permanently frozen soil that underlies about half of Canada's landmass.Permafrost The study predicts that thawing permafrost could release up to 508 billion additional tonnes of carbon into the atmosphere by the end of this century (88 years) roughly the same amount that humans have released into the atmosphere since the industrial revolution (call it 1776)

The Low Carbon Diet The massive 2012 drought that has gripped the nation since the spring refuses to die, according to the latest report from the U.S. Drought Monitor In fact, its expanded a little: as of September 18, 64.82% of the contiguous U.S. was suffering from at least moderate drought, slightly more than the percent reported a week earlier. Setting a new record for this drought category

Colorado wildfires, worst in state history The average annual number of fires that cover more than 1,000 acres has nearly quadrupled in Arizona and Idaho and doubled in California, Colorado and six other Western states since 1970 The Low Carbon Diet

Banks have a weight gain problem too, they are sitting on $1.5 trillion of lendable reserves. Even though the Fed has kept the federal funds rate at 0 to 0.25% for the past 4 years, the lowest the rate has been since the Federal Bank began tracking the rate in 1954

The Low Carbon Diet "They say 'there are no atheists in foxholes.' Perhaps, then, there are also no libertarians in a financial crisis." –Harvard professor Jeffrey FrankelJeffrey Frankel Chart from Financial Forecast Center We are in the longest period of high unemployment since the great depression, because people who can borrow $ wont and many who want to cant

The Low Carbon Diet OK, I am a little worried!

The Low Carbon Diet But….. the new iPhone 5 just came out…… And, it should add between 1/4 to 1/2 a percentage point to fourth quarter annualized GDP growth!

The Low Carbon Diet April 3, 2013 will be the 40th anniversary of the first public telephone call placed on a cellular phone. Martin Cooper placed that call using a "brick"-like 30-ounce phone. Motorola introduced the 16-ounce "DynaTAC" phone into commercial service in 1983, with each phone costing the consumer $3,500. ($8, in todays dollars) In the 1980's you could get a 30 minute plan for $49 per month ($113.34/ month in todays dollars). Roaming was extra as were the long distance charges paid to your phone company

The Low Carbon Diet There are now more wireless devices being used in the United States than there are people. Wireless penetration for the U.S. population increased from 13% in 1995 to 120.4% in 2011

The Low Carbon Diet onlyMore than one-in-four U.S. homes had only a wireless phone as of June 2010, up from 13.6 percent in 2007

The Low Carbon Diet If you boil down the growth of the cell phone market it was based on –Giving consumers something they wanted –With a pay-by-the–month business plan –Based on a new regulatory foundation that totally disrupted the Bell-Tell business model Competition Innovation –Driving economies of scale that reduced costs and allowed new features to come to market

The Low Carbon Diet So, where am I going with this????

The Amazing Low Carbon Diet

The Low Carbon Diet The U.S. solar industry just had its second-best quarter in history and is expected to install as much solar power in 2012 as the ten years before 2010, (Solar Energy Industries Association, Monday, September 10 th ) According to research from the SEIA, the average price in the second quarter for purchasing an average sized solar PV system was $32,400. (Solar water heating systems cost $4,000 to $10,000)

The Low Carbon Diet This year residential Solar PV installations will blow past residential Geothermal Heat Pump installations for the first time. Forecast - 70,000 residential PV systems Forecast - 40,000 residential GHP systems

The Low Carbon Diet How can they do this in the 4 th year of a crummy economy?

The Low Carbon Diet The Solar Energy Industries Association (SEIA) just released a report stating that third-party solar financing options (leases) were used for over 70% of residential PV installations in California, Arizona, and Colorado in the second quarter (2012). The solar leasing model has attracted more than $600 million in new investments in recent months as investors recognize solar leases and power purchase agreements as a secure investment. SEIA expects that third-party installations will claim even more market share in the future.

We are witnessing the birth of a new Low Carbon Building Market Efficient Envelope Renewable Energy Systems Efficient Equipment Annually producing as much energy as consumed with minimal carbon emissions New financing Tools Thermal Energy Policy

The Low Carbon Market New Financing Approach Solar/Thermal Building Efficiency Geothermal Heat Pump Solid Policy Base

The Low Carbon Market Old Contractor Model –Provide Energy audits and/or weatherization, or –Install geothermal systems, or –Install solar thermal systems, or –Install Solar PV systems Low Carbon Contractor Model –Provide all these services at 1 time for a fixed monthly payment 1 sales call More margin per job! Maximum return for buyers and the environment

26 Zero Energy Homes 50% minimum reduction in total energy needed Net-zero electric bill –Can easily hit 100% using the electric grid as a battery Gas offset with GHP and solar thermal The Net-Zero Energy Residential Test Facility in Gaithersburg, Md.

27 Zero Energy Homes Increasing consumer interest in ZEH, driven by –Increasing electric utility costs –Leasing vs. paying cash for systems/solutions –Lower cost of solar PV & thermal –Increasing consumer & trade awareness Utility acceptance/participation New financing mechanisms –Changing accessibility and mind set

Zero Energy Homes The most cost effective way to get to zero energy is to utilize a ground source heat pump system. –Air source heat pumps dont have the cost/benefit ratio to drive the on-site electric generation they need –Only GHPs can store thermal energy, using the ground as an energy battery

Air Source A/C Vs. Ground Source Efficiency Outdoor Temperature Energy Efficiency EER Ground Source – EER

Simple Concept Water moves energy better than air does Water in the ground provides renewable energy and storage of on-site thermal energy 30 Typical water-refrigerant Heat Exchanger used in most GSHP equipment

1 kWh to power the system 1 kWh to power the system 3-5 kWh of geothermal energy moved from the earth 4-6 kWh heat equivalent delivered Geothermal Heat Pumps % Efficient

14.6 In 9.5 Out

COPs of 6+ are possible with advanced equipment

The Low Carbon Market The Final Piece is a Supporting Energy Policy that Levels the Playing Field for Renewable Thermal Energy –Measuring savings in annual Btus, not just kWh –Considers the thermal (and consequently carbon) impacts of all fuels –Based on the cost effectiveness to the end user –Allowing equal access to consumers for renewable & efficiency providers We can always count on the regulators to do the right thing, after they have exhausted all the other possibilities.

The Geothermal Low Carbon Diet Eat the energy you need for 1 fixed monthly payment Save 10 metric tonnes of carbon per home per year in Colorado The low carbon lunch you are paid to eat!

Thank You For Your Attention! Questions? Paul Bony If you ever need a hand you can reach me at: