Alberta homeowner guide
A credible geothermal running-cost estimate starts with your home’s heating demand and the cost of the energy the complete system uses. It should separate electricity consumption from the bill’s fixed charges and disclose the assumptions behind projected savings.
Discuss your projectGather a baseline that includes heating and cooling
Collect a full year of electricity and fuel bills where possible. Record consumption as well as dollars, because rate changes can make the bill rise even when usage falls. Note major changes in occupancy, thermostat settings, renovations or equipment.
If natural gas or propane also serves hot water, cooking or other appliances, the entire fuel bill is not a space-heating baseline. Ask the estimator how those uses will be separated. Summer consumption can provide context, but it is not a precise measurement of every non-heating load.
Existing air-conditioning energy should also enter the comparison if the proposed geothermal system will provide cooling. Compare equivalent comfort services rather than a heating-only fuel bill against a new heating-and-cooling installation. The cooling guide explains the equipment choices that affect this scope.
Distinguish fuel input from heat delivered
A furnace’s fuel consumption includes losses in converting fuel to usable heat. A heat pump moves heat and uses electricity to do that work. Comparing raw fuel energy with heat pump electricity without accounting for performance can produce a misleading savings estimate.
Seasonal performance matters more for annual budgeting than a single test-point coefficient of performance. COP describes heat delivered divided by electrical input under stated conditions; actual performance changes with loop temperatures, distribution temperatures, controls and other factors.
Natural Resources Canada’s heat pump guide explains these performance concepts. Ask the estimator to identify whether the efficiency assumption covers only the heat pump or also circulation, fans and supplemental heat.
Build the electricity estimate in separate parts
A practical calculation includes heat pump consumption, ground loop pumping, air handling or hydronic distribution, controls and supplemental heat where applicable. Domestic hot-water functions need a separate allowance if they are included.
For illustration only, if a home needs 20,000 kWh of delivered space heat and the assumed heat-pump seasonal COP is 3.5, the heat pump portion would be approximately 5,714 kWh. At an assumed variable electricity cost of $0.20 per kWh, that portion would cost about $1,143. These are example inputs, not Alberta tariffs, a quotation or a forecast for your home.
The total would still need the other system loads and relevant bill charges. This example shows why a simple “COP equals bill savings” claim is incomplete. The sizing guide explains how the building load and design are established.
Use the right bill charges and tariff assumptions
Review the energy charge together with delivery and other charges that change with electricity consumption. Fixed monthly charges should be identified separately. Taxes and the contract structure also affect what you pay, so the estimate should state exactly what its rate includes.
A natural gas connection may remain for a range, fireplace or water heater. In that case, its fixed charges may remain even if space heating moves to electricity. Only count avoided connection charges when the service can actually be removed and that choice is part of the project.
Propane comparisons should include the actual supply arrangement and any applicable tank or delivery costs. Our geothermal versus propane guide provides a framework for rural homes without presenting a universal payback period.
Compare scenarios instead of one promised saving
| Input | Useful comparison |
|---|---|
| Heating demand | Current home versus planned insulation or window upgrades |
| Seasonal performance | Conservative and design-case assumptions |
| Energy prices | Current contract and plausible alternative rates |
| Supplemental heat | Expected contribution and a higher-use scenario |
| Fuel connection | Retained service versus complete removal |
Compare the same assumptions across alternatives. If one quotation uses a low electricity rate and another uses a higher rate, their savings estimates are not directly comparable. A sensitivity analysis helps show which assumptions most affect the outcome.
Keep running cost separate from project payback
Annual operating savings are only one part of the investment decision. Installation cost, financing, maintenance, replacement allowances and verified incentives determine the wider financial result. Compare geothermal with the alternative you would realistically install, including cooling if needed.
Simple payback divides the extra investment by annual savings; it does not capture interest, changing tariffs or the timing of future replacements. Do not count a grant or tax credit unless the property, applicant and project meet the relevant conditions. Our Edmonton financing guide explains why financing is different from a rebate.
Ask Envirotech for a property-specific assessment using your bills and renovation plans. A transparent estimate should make the arithmetic and assumptions understandable enough that you can revise them when rates or plans change.
Common questions
Will COP 4 reduce my bill by 75 percent?
No. COP describes heat delivered per unit of electricity at stated conditions. Bill savings also depend on the alternative system, tariffs, auxiliary loads and retained charges.
Should I use my electricity energy rate alone?
Include the charges that vary with consumption and identify fixed charges separately. State whether taxes and other applicable charges are included.
Can energy bills replace a heat-loss calculation?
No. They provide useful baseline information, but equipment and loop sizing need a proper design assessment.
Continue your research
Explore the Alberta geothermal learning centre for connected guides on design, comfort, installation and costs.
Plan with Envirotech Geothermal
Bring your property details, existing equipment information and questions to a discussion with the Envirotech team.
Contact EnvirotechExplore residential geothermalPrepared by Envirotech Geothermal Team. Technical or planning reference: Natural Resources Canada heat pump guide. Reviewed October 4, 2026.
