Canada, Where Are We at with Geothermal Energy for Homes?

Hot spring - geothermal energy for homes in canada

Geothermal energy is growing fast in countries like Iceland, Indonesia, the Philippines and the U.S. Despite having ample geothermal resources, however, it’s not very common in Canada. According to Sustainable Technologies, there are only about 100,000 geothermal exchange systems in Canada. And thus far, one geothermal power plant in the works.

Canada’s first geothermal power plant is under construction near Estevan, Saskatchawan. Sara Reiger of the CBC reports that it “will power about 5,000 homes and offset 27,000 tonnes of carbon dioxide per year.” Justin Trudeau made the announcement in January of 2019. He drew special attention to the high potential for geothermal energy production in the Williston Basin.

There’s similar excitement over the possibilities for the development of geothermal energy plants in Alberta, British Columbia and the north. Proponents of the renewable resource see a bigger future for geothermal energy than for solar power or wind. They point out that geothermal is constantly available, which gives it a leg up. It’s also cheap to produce and the emissions associated with producing it are low.

What Geothermal Options Are Currently Available for Homeowners?


Geothermal energy is primarily used for heating and cooling in residential homes. There are three types of heating and cooling systems currently in use: vertical closed loop systems, horizontal closed loop systems and open loop systems. Each type operates by basic refrigeration principles.

In a vertical closed loop system, refrigerant and water are pumped through pipes drilled over 300 feet into the earth. On the way, the liquid is either heated or cooled by the earth (depending on the season). It’s then compressed by the heat pump once inside the home. This compression raises the temperature to whatever indoor temperature the home is set to.

Vertical closed loop systems are the most common type of geothermal exchange system. Horizontal closed loop systems run that same refrigerant through +300 feet of pipes buried in a grid. These are typically laid 6 to 10 feet underground. That requires a sizeable amount of space (at least 5000 ft. sq.). If you have the space, horizontal ground loops are generally more cost-effective since you don’t need a drilling rig to install them.

Open loop systems draw water from a groundwater source like a pond, a lake or a well. They effect the heat exchange and then return the water back to the water table, slightly heated or cooled. Not every home has access to the amount of groundwater required, even if there’s an existing well on property. Open loop systems need 2 gallons/minute per tonne beyond what the home is already pulling for its usual water needs.

The system will also be drawing from and emptying back directly into the local water supply. That means open loop systems need to be cleared with local regulatory bodies.

Geothermal systems can be part of a new build or they can be incorporated into a home’s existing HVAC system. They’ll also work if a home has radiant heat. The heat from the ground simply heats up the water used for radiators or in-floor heating.

What Are the Advantages of a Geothermal Exchange System?


Geothermal field - geothermal energy for homes in canada

The same benefits that characterize geothermal energy as a whole are touted for residential geothermal exchange systems. Once installed, they’re very inexpensive to run. The temperature of the earth is a constant 6 to 11°C below the frost line, regardless of air temperature. These systems can make use of that constant temperature year-round. They can act as furnaces, air conditioners and hot water heaters in one.

They’re responsible for fewer greenhouse gas emissions than more traditional sources of heating and cooling. According to the U.S. Office of Energy Efficiency & Renewable Energy, geothermal heat pumps are, on average, 65% more efficient than conventional HVAC systems.

Ula Chobrak of Popular Science explains that since geothermal exchange systems transfer, rather than generate, heat, they’ll always be more efficient than traditional fossil-fuel burning systems. She says all geothermal heat pumps “are technically over 100 percent efficient, meaning that it produces more energy as heat than it consumes for electricity. Meanwhile, even an especially efficient gas heater might only reach 90 percent.”

In addition to being efficient, geothermal systems also have the advantage of being very long-lived. Heat pumps have an average life span of 25 years, while the ground loop systems typically last over 50 years.

What’s Holding People Back?


Most homes with geothermal exchange systems will see their energy costs reduced, but not eliminated. The larger the energy bill is to begin with, the more money homeowners put back in their pockets every month. That makes this renewable energy option very well-suited to large, older homes that are not well-insulated. It’s also great for very large, new custom-built homes that tend to feature a lot of empty space; tall ceilings, for example.

For the average Canadian, weighing the energy saved against the initial installation costs may not make financial sense, though. And that is the biggest reason geothermal energy isn’t more widespread among homeowners.

The heat pump itself costs about as much as a conventional furnace. The installation, however, typically runs between $20,000-30,000. For Mike Reynolds of Ecohome, the return on investment is too low to be attractive to the average home owner. For him, geothermal energy is “more suited to commercial or multi-unit residential projects of substantial size.” At this point, Reynolds says, the average homeowner would be better to invest their money “in a better thermal envelope” if they’re looking to reduce their heating bills.

That initial cost barrier is what makes the Estevan plant so important. Geothermal heat will be most accessible to people if those costs can be amortized over time and across households. With heating and cooling bills, for example. But we can’t do that without first addressing gaps in legislation and regulatory processes that are stalling the geothermal sector. Maybe the Estevan plant is the start of that shift.

Feature image: Francesco Ungaro; Image 1: Bri

3 thoughts on “Canada, Where Are We at with Geothermal Energy for Homes?”

  1. Has the option of a shared geothermal closed system fluid supply, coupled with private heat pumps been considered? The shared supply could be provided by municipalities, provinces, federally or by non-profits. The costs could be recovered by metering flows to each attached building. This option could radically reduce the poor economics associated with air-to-air heat pumps and air conditioners, as well as reduce the costs and energy consumption of domestic hot water. It would allow private citizens some choice in when or whether to connect. It would be especially attractive for buildings adjacent to open land or water. This could include parks and other public land.

    1. That would be a good approach. It’s always difficult getting government to agree on proposals like this, but there’s a good amount of will nowadays when it comes to reducing greenhouse gas emissions so who knows.

      A variation on that idea would be to ask developers to install them in their subdivisions in exchange for a tax break or similar incentive.

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