Save money with geothermal heating – and the environment Thanks you

Geothermal heating

The popularity of geothermal heating as the primary energy source for single-family homes is growing, while direct electric heating and oil heating are on the decline. When a geothermal system is installed in a building, both space heating and domestic hot water are provided by renewable and emission-free thermal energy.

This energy form has excellent efficiency: it consumes little electricity and can save homeowners a significant amount of money. In this text, we’ll dive into the undeniable advantages of geothermal heating, but also the challenges that can arise when acquiring such a system.

Advantages

Cost-efficiency: Geothermal heating is economical, meaning you save real money. Switching from direct electric heating to geothermal reduces monthly heating costs by about 70%. A more common system in new homes, exhaust air heat pumps, are already significantly more economical than direct electric heating. Still, heating costs in a geothermal home are about 40% lower than in a home with an exhaust air heat pump.

Among the most common heating solutions, geothermal heating is clearly the most economical option. You can easily compare the cost-effectiveness of different heating systems with the heating comparison calculator for detached houses available on Motiva’s website.

Resale value: Homebuyers appreciate geothermal heating. In a 2022 survey conducted among Kiinteistömaailma’s real estate agents, it was ranked the absolute number-one selling point for single-family homes and row houses. This can increase demand, improve resale value, and speed up the sales process.

Environmentally friendly: eothermal energy is renewable heat stored in the ground, originally derived from the sun’s radiation. Compared to traditional oil or electric heating, geothermal heating produces less than half the carbon dioxide (CO2) emissions.

In Finland, about two-thirds of household energy consumption goes to heating spaces. Geothermal heating is therefore an excellent way to save energy and reduce the environmental and climate impact of your lifestyle.

Convenience: A geothermal system generally operates automatically and reliably, offering worry-free and consistent heating year-round. No fuel storage is needed, which is a major difference compared to pellets, oil, or wood. The earth itself is the massive storage facility for geothermal energy.

Flexibility: Geothermal heating can be easily combined with other energy sources, such as solar power. This allows you to make choices that save you even more money and reduce your environmental footprint—while meeting your specific needs.

Challenges

High upfront investment The initial investment in a geothermal system is higher than with other common heating solutions, meaning you’ll need to arrange more financing. However, a one-time investment in geothermal lowers your heating costs permanently.

The system starts paying itself back from day one in the form of lower heating bills, which in turn helps with paying off, for example, a larger mortgage.

Ground drilling or space for ground loops: Installing a geothermal system requires drilling into the ground—sometimes hundreds of meters deep into bedrock depending on the building’s heating needs—or alternatively laying ground loops in the soil.

In some cases, drilling a borehole may be prohibited, for instance due to groundwater protection, making it not an option. Ground loops laid in the soil require a large free plot area, which often isn’t possible in densely built neighborhoods. If geothermal heating is not an option for these reasons, you’ll need to choose another suitable solution—such as an exhaust air heat pump combined with solar panels.

Permit requirement: A building permit is always required for a geothermal system. For new builds, it is usually applied for at the same time as the building permit for the house itself. For older homes, a permit can be applied for even decades later. Authorities will assess whether the local zoning plan allows for a geothermal solution and whether the proposed plans are feasible.

Summary

Geothermal heating offers homeowners many advantages, such as cost savings, environmental benefits, and convenience. The main challenges typically arise during planning and construction, since installing a geothermal system is not always feasible.

Whenever possible, Olas chooses geothermal heating as the heating solution for the homes it builds.

See available geothermal homes in the Helsinki metropolitan area here.