Comparative Analysis on Home Comfort Systems in Alberta, Canada

The trend of retrofitting homes and buildings is on the rise, driven by various factors. For some, it's the increasing costs of operations that spur change. Others seek enhancements in efficiency and comfort in their living spaces, while a commitment to minimizing environmental impact is a priority for many. In the context of these motivations, it's useful to consider the expertise of professionals in the renewable and energy efficiency industry, who bring over 15 years of experience to the table. They often suggest a strategic approach to addressing the question of whether to retrofit.

This approach is based on what industry experts often refer to as the 'three E's': Economics, Efficiency, and Environment, as they relate to Energy Efficiency Upgrades. Economics is about understanding the cost implications, not just upfront but the ongoing financial obligations of retrofitting decisions. Efficiency examines the improvements in the operational performance of the home post-upgrade. The Environment angle assesses the ecological ramifications, from the resources required to implement the upgrades to their long-term environmental footprint. An informed decision-making process that rigorously applies these 'three E's' helps homeowners avoid the 'fourth E'—Emotional decisions based on inadequate information. By being well-informed, homeowners can make choices that are rational, cost-effective, and sustainable in the long run.

Below is a comprehensive comparative analysis of three tiers of furnaces, juxtaposed with an air source heat pump, and a ground source heat pump, commonly known as GeoExchange. This examination is conducted under the premise that no additional energy-saving measures have been employed, thereby ensuring a more lucid comparison amongst the prevailing technologies. Moreover, it is pertinent to acknowledge that the environmental aspect of this analysis is predicated upon the 2023 metric tons of CO2 equivalent (TCO2e) associated with the average electrical grid in Alberta. For those residing beyond the borders of Alberta, a more localized and detailed examination would be necessary to accurately interpret the environmental implications in relation to your specific regional conditions.

• The space being analyzed is 1,922 square feet and is temperature-controlled.
• The location of the home is Edmonton, Alberta.
• The construction year of the home is 1968.
• Installation cost estimates are based on current average market rates and may vary by approximately 15-20%.
• Operational costs are calculated from the total energy cost, encompassing both delivery and energy charges. For natural gas, the cost is assumed to be $9.85 per gigajoule ($0.035 per kWh), and for electricity, the assumed rate is $0.24 per kWh. The cost difference between natural gas and electricity is referred to as the 'spark gap'. Overcoming this gap for new technologies requires improvements in either efficiency or installation cost-effectiveness.

The data clearly indicates that the most cost-effective choice in terms of installation is the 'Good Furnace,' while the 'Best Furnace' emerges as the most economical in terms of annual operation costs. A notable revelation is the environmental impact assessment. The Air Source Heat Pump (ASHP), despite its efficiency, has a significant environmental footprint due to its substantial electricity usage. This intensifies the existing cost discrepancy—referred to as the 'spark gap'—between traditional heating methods and the electrification of heating systems, particularly in Alberta.

The analysis presented here is a brief snapshot; a full life cycle cost analysis would take into account a variety of other factors, such as inflation, the aging of equipment, and future enhancements to the electrical grid with respect to emissions, among other considerations. It’s important to note that this examination focuses solely on climate conditioning improvements. For anyone interested in retrofitting their home or business we strongly suggest that a thorough Life Cycle Cost analysis be undertaken to allow homeowners or building managers to discern the most beneficial combination of upgrades to the building's envelope, as well as its mechanical, electrical, and on-site energy generation systems.

There isn't a one-size-fits-all solution when it comes to balancing cost savings with environmental benefits. If your aim is to reduce both costs and environmental impact, modifying only the mechanical systems might not be sufficient. We recommend consulting with local Certified Energy Managers and Advisors to ensure that any decision made is well-informed and comprehensive.

We appreciate your interest in understanding more about home comfort systems. If you have any questions or would like to start a conversation, please feel free to send us a message directly or comment below so that we may extend the discussion to a wider audience.