Why Geothermal is Still a Great Investment in a Cheap Natural Gas State

Colorado is a great state to start a small business in. With low income-tax rates, low unemployment, and great entrepreneurial energy Colorado frequently ranks high in national rankings for doing business. Which are all fantastic to start a green business like ours. According to the Colorado Energy Office, Colorado ranked 6th in marketed natural gas and has the third largest natural gas reserves in the country. And according to the Energy Information Administration, Colorado ties for 45th for the average price of natural gas (per 1,000 cubic feet)- meaning it tied Alaska, Connecticut, New Hampshire, Oklahoma and Washington as having some of the most inexpensive natural gas prices in the country. Choose Energy reported that in June, Colorado ranked 7th cheapest in natural gas rates in the country. Doesn’t sound great for selling geothermal does it? I disagree and here is why:

One of the biggest comments we get when a client inquires with us about installing geothermal is that they want to reduce their carbon footprint. Younger generations are interested in reducing their impact on our planet, and are educating themselves on ways to do it. From electric vehicles to solar panels to recycling to geothermal, they are choosing to make a conscious effort to make the planet better for its future inhabitants. They want to reduce their reliance on fossil fuels and are figuring out that decarbonization is important to them. Geothermal allows them to reduce their carbon footprint and propel them towards the changes they want to make.

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For other customers, installing a geothermal system is about reducing their utility bill and keeping their future monthly expenses down. As people are aging into their homes they want a system that will last, be comfortable and low maintenance, and save them money. Even with inexpensive natural gas prices in Colorado, many of our customers are still seeing a pay back of 5-8 years when they replace their dated furnace and air conditioner with a geothermal system. Federal tax credits and utility rebates don’t hurt either. One of our client’s called us the other day to tell us how excited he was to be getting a nice check back from his utility company because of his new geothermal system. The cost of his retrofit geothermal system after tax credits and utility rebates was comparable to what he would have paid for total replacement of a less efficient furnace and air conditioner.

As more and more municipalities set Clean Energy and Net Zero Carbon goals, geothermal presents utility companies, homeowners, developers, builders, and investors a means to meet high performing, sustainable development. For example in Boulder county, they have proposed a goal to require all new residential construction to be Zero Net Energy by 2022. More homeowners are educating themselves and realizing that geothermal is a great way to meet these needs. In the next several weeks we will be installing 9 geothermal systems in the Boulder area. Yet just driving to Boulder we probably will pass twenty-some drill rigs, work over rigs or wells in the 25 miles between us- reminding us that Colorado is still a top producer of natural gas. But in my opinion, this is starting to change.

Our state is amply supplied with both fossil fuel and renewable energy resources. And as a green business owner and geothermal industry defender the impact of cheap fossil fuels in our state keeps us advancing our installation game and best practices. We have had to build more compact, efficient and safe equipment and streamline our processes. Maximizing efficient drilling operations helps us keep costs down and present quality, affordable geothermal systems to our customers. We are on a mission to make geothermal accessible and economically viable to all homeowners. So, while natural gas is abundant and cheap in our state, we are upbeat to see homeowners educating themselves about a technology that can check all their boxes. Energy efficient, decreased carbon footprint, save money, safety, comfort, reliable, aesthetically pleasing, security, and no weather damage, corrosion or vandalism. We may not be the biggest and aren’t taking millions of investor dollars into our company, but we are bringing affordable geothermal to more homeowners and simplifying the process with our modern installation practices. We are a small, family owned company that has been providing quality geothermal systems for over 15 years based on our innovative approach and streamlined operation and will continue to provide affordable geothermal solutions to our customers.