The financial impact of solar depends on your power provider’s billing. In summer, solar’s highest production is in the middle of the day while system peak most often occurs late in the afternoon when solar production is waning. Winter system peaks occur early in the morning when solar panels haven’t even “woken up” yet. In both scenarios, the capacity for solar members that isn’t being covered by their solar system must be accounted for in generation expenses. Since power costs are recovered through energy sales, lower kilowatt-hour purchases not offset by reduced demand have a negative impact on margins.
Cooperatives that have done studies comparing a home with an ordinary air source heat pump and electric hot water heater rooftop solar have learned that when a member adds solar to their home, margins shrink by as much as 92 percent. Solar is an intermittent resource that only provides power, typically during base load periods of the day when additional capacity is not needed.
When members are seeking a renewable solution, geothermal heat pumps are a technology that is beneficial to all members. Because geothermal heat pumps are 50%+ more efficient than ordinary HVAC options, they can provide coincident peak reduction that offsets reduced kilowatt-hour use resulting in a positive financial impact. GSHPs not only benefit members, but co-op margin studies have found that replacing ordinary HVAC systems with geothermal heat pumps have improved margins by as much as 15%*.
* Advisement from your rate consultant will quantify the answers to the above questions.
Natural gas negatively impacts the margins of your cooperative by taking the space and water heating load, leaving your co-op with only air-conditioning load to recognize revenue. Ordinary heat pumps have been deemed “cooler” heat and when the strips operate, they have higher operating costs.
Because a geothermal heat pump provides consistent heat using the earth’s stable temperature year-round, members enjoy heating comfort and operating costs that are competitive with natural gas systems. Your co-op can add heating load and improved load-factor cooling to your system with geothermal heat pumps.
Geothermal is also a financially beneficial solution for new commercial and residential developments added to your system.*
* Advisement from your rate consultant will quantify the answers to the above questions.