The capital cost for a geothermal power plant is about $2,500 per kilowatt (kW), whereas operation and maintenance costs range from $0.01 to $0.03 per kWh. Tax incentives and various forms of financing are often used to offset costs of developing a geothermal power project.
How much does it cost to start using geothermal energy?
The initial cost for the field and power plant is around $2500 per installed kW in the U.S., probably $3000 to $5000/kWe for a small (<1Mwe) power plant. Operating and maintenance costs range from $0.01 to $0.03 per kWh.
How much does geothermal energy cost per month?
The homeowner said he was paying $150/month for propane, and if we deduce the average geothermal kWh use it would be around $138/month, a savings of $12/month. In today’s dollars, the price of geo is 1/3 the cost of propane, so he would save $3,000 per year.
Is geothermal energy inexpensive or expensive?
Geothermal energy is the cheapest form of clean energy out there, with wind energy a close second – and both could become cheaper than fossil fuel-fired energy if governments will direct more research funding to them.
Is geothermal cheaper than natural gas?
A geothermal heat pump uses electricity. In a lot of areas around the country, natural gas costs are very low. It is much cheaper to operate a natural gas furnace than to rely on an electric furnace. … Basically, geothermal heating costs are going to be as good and often better than what a gas furnace can produce.
How long does it take for geothermal to pay for itself?
The payback period for a typical geothermal heat pump system, or the time it takes to save your upfront investment in the form of reduced energy costs, is between 5 and 10 years, according to the Department of Energy.
How much land do you need for geothermal?
An entire geothermal field uses 1-8 acres per megawatt (MW) versus 5-10 acres per MW for nuclear operations and 19 acres per MW for coal power plants. Coal power plants also require huge acreages for mining their fuel.