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Geothermal Heat Pumps: Less Electricity Bills, More Efficient Heating, and Promise of Less Carbon Emission

Geothermal Heat Pumps Market By Technology (Closed Loop and Open Loop), For Residential and Commercial (New Build and Retrofit) and End-Use Applications - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2020
Published 28 September 2015

Geothermal heat pumps (GHP), also sometimes called earth-coupled, ground-source, GeoExchange, or water-source heat pumps, use the constant temperature below ground level of soil or water to heat and/or cool homes. Many regions across the globe experience extreme temperatures according to seasons, ranging from sub-zero cold in winters to scorching heat in summers. However, a few feet or so below the earth’s surface, the temperature remains relatively constant. Due to insulation provided by soil, this temperature is usually warmer than the air above it in winters and cooler than the air in summers.

A GHP systems exchanges heat from a complex with the ground’s temperature and heats or cools it according to the season. With the use of ground temperature instead of outside air, like in the case of air-source heat pumps, GHP systems lead to fairly high efficiency even on the coldest winter nights and hottest summer days.

Browse Market Research Report of Geothermal Heat Pumps Market:

Manufacture, maintenance, and installation of geothermal heat pumps is a billion-dollar industry. According to a Transparency Market Research report, the global market for geothermal heat pumps had a net valuation of US$55.30 billion in 2013. The report states that the market has excellent growth prospects over the 2014-2020 period. Growing at a 13.1% CAGR between these years, the market is expected to rise to US$130.50 billion by 2020. In terms of installed capacity, the market totaled 52,638.18 MW in 2013 and is projected to rise to 119,303.66 MW by the end of 2020, growing at a 12.8% CAGR between 2014 and 2020. 

Lesser Carbon Emission and a Lot More to Offer…

Ground source heat pumps provide an excellent emission-free heating and cooling option. These systems help in substantially reducing the energy bills of a premises and eventually help in reducing the carbon footprint of an area. Individual projects have also demonstrated large energy savings, suggesting that today’s GHP systems may also push their utility potential to a much higher level.

Heating and/or cooling indoors in commercial, institutional, and residential buildings accounts for a huge share of the primary energy, oil and natural gas consumption of the complex and a substantial portion of carbon emissions across the globe. Over the past few years, these needs have continued to be a significant reason behind the continuously rising energy demands and a major source of carbon emission in the global scenario. Driven by the rising trend of urbanization and growing population and GDPs, the rising power demand is a huge burden on the environment and the global economy, due to the extensive use of natural gas and oil for energy production.

Browse Market Research Press Release of Geothermal Heat Pumps Market:

And thus the Rising Demand for GHP Systems

GHP systems have helped in gradually improving this situation over the past several decades by replacing the need for electrically operated heaters or coolers in building premises. Rapid technological advancements in the field of GHP systems are rapidly bringing highly affordable and technologically more improved GHP systems in the market.

Government policies such as the Federal Tax Credit scheme in the U.S. and the Renewable Heat Incentive (RHI) scheme in the U.K. have led to increased adoption of GHP systems in the past years. With new initiatives that will effectively address the barriers inhibiting a greater adoption of GHP systems, such as the high initial costs (nearly 30% more expensive than air-based heat pumps), the market will grow at an even more impressive rate.

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