1 Best Practices for Program Implementation: Lessons from the Geothermal Heat Pump Experience Harvesting Clean Energy Conference Billings, MT January 26, 2009

2 Geothermal Heat Pumps (GHPS) Benefits – Energy Efficient – Green – Help Reduce Dependence on Foreign Oil Challenges – High up-front costs – Technical challenges remain – Low Awareness

3 Benefits to Society Approximately 1 million ghps are installed in the US. Significant energy savings and reductions in carbon emissions: – Elimination of more than 6.2 million metric tons of CO 2 annually – Annual savings of more than 7 billion kWh – Annual savings of more than 36 trillion Btus of fossil fuels – Reduced electricity demand of 2.3 million kW

4 Benefits to Customers Substantial cost savings: Geothermal heat pump systems can save as much as 50% compared to air- source heat pumps and up to 45% over fossil-fuel (gas, propane, or oil) furnaces. Economical rates: Some utilities offer special, lower winter rates for geothermal heat pump customers, offering even more savings. Environmentally Friendly: Geothermal heat pump systems are a “renewable” energy source that encourages conservation of natural resources. Financing: Some utilities offer financing through either private financing or utility-sponsored loop leases.

5 Benefits to Utilities Energy efficient technology that – Builds profitable off-peak load – Provides a competitive response to natural gas and propane – Offers customers a choice, and – Provides a potential opportunity to control air conditioning and water heating loads in the future.

6 The Time is Right for GHPs Renewed interest in ghp programs from: – Utilities – Manufacturers – Growing infrastructure of trained contractors Utilities of all sizes are promoting ghps through: – Innovative marketing practices – Making a long-term commitment to the market – “Putting their money” where it counts

7 Best Practices in GHP Programs Features profiles of 12 utilities with innovative ghp programs: – Investor-owned – Municipal – Rural electric cooperatives Both small and large utilities Demonstrate that this technology has traction in the market, especially in residential new construction and schools.

8 Summary of the Utility Best Practices Focus on developing well-defined programs that: – Demonstrate a long-term commitment to developing a ghp market Willingness to rely on the “experts” Takes patience to develop a trained infrastructure Vision to see the benefits down the road

9 Best Practices- Program Characteristics

10 Common and Best Practices – Marketing Approaches Strategies to reduce the first cost barrier – Loop leases, rebates, loans, “geo” rates Nurture Contractor Development – Training, tools, partnerships, referrals Create and Generate Enthusiasm – “Walk the Walk” – Create a “Geo Culture” – Showcase high profile installations

11 Best Practices to Reduce First Cost

12 Best Practices To Nurture Contractor Development

13 Best Practices to Creating Enthusiasm

14 For More Information Industry Links

15 Geo Heat PumpsGeo Heat Pumps: Leading Energy Utility Marketing Programs, Third Edition APPA and GeoPowering the West were partners in bringing the Geothermal Heat Pump Report to Western customers and other utilities. The report, available on CD, covers basic information about the equipment and costs and examines successful utility heat pump marketing programs. The CD also includes two Excel-based spreadsheet calculators. One helps utilities calculate the effects of residential geothermal heat pump installations in their territory. The other helps residential customers compare geothermal heat pumps to a variety of alternative heating and cooling systems. "To obtain a copy of Geothermal Heat Pump Report, contact your Energy Services Representative.Energy Services Representative

16 Questions? Katherine Johnson, Johnson Consulting Group – – Phone: –