Drill, baby, drill!
Wait, we aren’t talking about drilling for oil, but actually drilling for geothermal energy. It makes sense that while we look up for more energy solutions (wind and solar) and vertical for others (water), we should also look down into the earth for the energy that is naturally occurring beneath us.
Did you know geothermal can be used to generate electricity? Wells can be drilled into the earth to extract this energy in the form of hot water and steam. The fluid is then drawn to the surface and used to drive turbines that produce electricity.
More commonly known are geothermal systems used for heating and cooling within buildings. Geothermal heat pumps are eco-friendly, they provide comfortable, reliable heat and the economic benefits mean your building will have low operating costs for decades.
What is Geothermal Energy?
Geothermal energy harnesses the natural heat stored beneath the Earth’s surface. The Earth’s core constantly generates heat through the decay of naturally occurring radioactive elements, and this heat can be tapped into using geothermal systems. These systems utilize the relatively constant temperatures below ground to provide heating, cooling, water heating, and electricity generation. For commercial buildings, geothermal heating, ventilation, and air conditioning (HVAC) systems are the most common applications, offering an energy-efficient way to maintain comfortable indoor temperatures year-round.
How Does Geothermal Energy Work in Commercial and Apartment Buildings?
In a commercial geothermal system, heat pumps are used to transfer heat between a building and the ground. These systems operate on a closed- or open-loop configuration, depending on the site’s geology and the building’s energy needs.
- Closed-loop systems circulate a water or antifreeze solution through pipes buried underground, where the Earth’s consistent temperature warms or cools the fluid. This fluid is then circulated back into the building to either absorb heat (for cooling) or release heat (for heating).
- Open-loop systems use groundwater directly from wells, ponds, or lakes, which is pumped into the system to transfer heat. After use, the water is either returned to the original source or discharged in compliance with environmental regulations.
During the winter, geothermal systems extract heat from the ground and pump it into the building. In the summer, the system works in reverse, transferring heat from the building into the ground to provide cooling. The heat pump acts as a central component in this process, ensuring efficient energy transfer and distribution throughout the building.
Geothermal solutions can be used to heat hot water for use in apartment buildings, along with supplemental uses like heating water for pools.
Many commercial and apartment buildings are multi-tenant spaces, which call for different levels of heating and cooling and need to be separately metered. This can be accomplished through multiple heat pump units connected to the building’s underground geothermal loop.
What are the Benefits of Geothermal Energy for Commercial Buildings?
1. Energy Efficiency and Cost Savings
Geothermal systems are significantly more energy-efficient than conventional HVAC systems such as gas boilers or electric air conditioners. These systems can reduce energy consumption by up to 50-70%, leading to substantial cost savings on utility bills. Since they rely on stable underground temperatures, geothermal systems are less affected by external weather fluctuations, resulting in consistent performance and less strain on equipment.
In commercial buildings where HVAC systems account for a large portion of energy use, these savings can be significant. The initial installation cost of a geothermal system is higher than traditional systems, but the long-term savings in energy costs often offset the upfront investment. In some cases, businesses can recover the cost in less than 10 years through reduced energy bills.
There are also federal tax credits to help offset the cost of installation for geothermal systems in commercial buildings thanks to the Inflation Reduction Act.

2. Environmental Benefits
Geothermal energy is a clean, renewable resource that produces little to no greenhouse gas emissions. Unlike traditional HVAC systems that rely on fossil fuels, geothermal systems significantly reduce the carbon footprint of a building. This makes them an attractive option for businesses looking to achieve sustainability goals, reduce energy consumption, and meet regulatory standards for energy efficiency.
Additionally, geothermal systems have a longer lifespan than conventional systems. The ground loop can last up to 50 years or more, and the heat pump itself can last around 20-25 years. This longevity reduces the frequency of replacements.
3. Potential for Dual-Use
One of the most significant advantages of geothermal systems is their ability to both heat and cool a building. This dual-use functionality eliminates the need for separate heating and cooling systems, reducing both the physical space needed for equipment and the overall capital expenditure. In addition, geothermal systems can be combined with other sustainable technologies, such as solar panels, to further enhance a building’s energy efficiency and sustainability.
What are the Challenges of Implementing Geothermal Systems?
Despite its many benefits, geothermal energy is not without its challenges, particularly when it comes to installation and site-specific considerations.
1. High Initial Installation Costs
One of the primary barriers to geothermal adoption in commercial buildings is the high upfront cost of installation. Drilling and laying the underground piping required for geothermal systems can be expensive, particularly in densely populated urban areas where space is limited. The initial costs of a geothermal system can be two to five times higher than those of conventional HVAC systems, which can deter some from considering it as an option.
However, the long-term energy savings and available incentives from government programs can help to mitigate these upfront costs. Businesses may also take advantage of green financing options to support the installation of geothermal systems.
2. Site Suitability
The effectiveness of a geothermal system depends on the geological conditions of the site. Buildings located in areas with favorable underground conditions, such as stable soil temperatures and accessible water sources, will experience greater efficiency from geothermal systems.
Geothermal systems can be either horizontal or vertical, and the choice depends on the amount of available ground space in addition to a few other factors.
- Horizontal systems are installed by digging trenches in the ground and burying pipes at a depth of 6-10 feet. They’re more common in rural areas where more space is available, but can also be used in urban or suburban areas. Horizontal systems are less expensive to install than vertical systems because digging trenches is cheaper than drilling boreholes.
- Vertical systems are installed by drilling holes in the ground and inserting pipes into those holes. They’re often used in large commercial buildings or in areas where there isn’t enough space for horizontal systems. Vertical systems are also used when the soil is too shallow for trenching. These are usually more efficient than horizontal systems because the greater depths provide a more constant temperature.
3. Maintenance and Expertise
While geothermal systems generally require less maintenance than conventional HVAC systems, they do require specialized knowledge for installation and upkeep. Proper maintenance is crucial to ensuring the long-term efficiency of the system, particularly for the underground components that are not easily accessible. Businesses will need to work with experienced contractors and technicians who are familiar with geothermal technology to ensure proper installation and operation.
Conclusion
The Geothermal Energy Association (GEA) estimates that only 6.9% of the world’s geothermal potential has been tapped. However, geothermal power has the potential to meet 3-5% of global demand by 2050.
If you’re building or retrofitting a building in the future, consider geothermal as a long-term solution to providing a more energy-efficient system.
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Sources
https://www.cnbc.com/2023/04/26/a-massive-geothermal-apartment-complex-is-going-up-in-brooklyn.html