FEASIBILITY STUDY TEMPLATE

GEOTHERMAL HEATING SYSTEMS

Electric Sector Customers

DO NOT SUBMIT THIS PAGE WITH COMPLETED STUDY

OVERVIEW
The Feasibility Study Template is to be used as a guide when preparing a feasibility study report for
Electric Sector building owners considering one or more geothermal sizing options for their existing
building, new building or addition. Note that the economics of geothermal systems typically improves
for smaller base loaded systems. Systems sized to meet 70% of design heat loss cost less, but can still
be expected to provide about 95% of the building base load heating energy needs if ground heat
exchangers are adequately sized.
Feasibility studies are not required for Electric Sector customers but are recommended for customers
heating with fuel oil or propane.
Existing buildings currently heated by natural gas are not eligible for Feasibility Study Assistance or a
System Installation Incentive.
Customers opting to perform the study and apply for feasibility study assistance must use the following
Feasibility Study Template as a minimum in order to minimize review/approval time by Manitoba
Hydro.
Electric Sector Participants may be eligible for incentives through the Commercial Geothermal
Program. Heating Load Eligibility for Incentives is described in Appendix 1 - Geothermal Project
Requirements. Please reference this document when segmenting the loads to complete the tables
containing “eligible and ineligible loads”.

INSTRUCTIONS
The feasibility study author must use this template as a minimum and may modify it as required to
provide more information (but not less) to meet the requirements of their specific project.
Blue text in brackets and/or italics shaded in grey [Example] indicates instructions to follow or specify
text to customize. “XXXX” are placeholders for values. Please replace and/or delete these instructions
prior to providing a finalized report to the customer and Manitoba Hydro.
Please follow the format outlined in the document below. Any substantial omissions or deviations
from the information/format requested in this template may result in a feasibility study not being
accepted by Manitoba Hydro’s Commercial Geothermal Program.

QUESTIONS
If you have any questions/concerns regarding the completion of this feasibility study, please contact:
Denton Vandersteen, P.Eng.
Senior Commercial Systems Engineer - Manitoba Hydro
Telephone: (204) 360-3803
GEOTHERMAL HEATING SYSTEM FEASIBILITY
STUDY FOR
Building Name and Function

Prepared by:

[Consultant Name, Company]

[Include company logo]

Prepared for:

[Client Name]
[City, Province]

[Date]

Based on MH Feasibility Study Template (May 2013 Rev.)

Table of Contents

1.0 EXECUTIVE SUMMARY...............................................................................................2

2.0 BUILDING CHARACTERISTICS.....................................................................................3

2.1 Building Heating and Cooling Loads.......................................................................4

3.0 BUILDING HEATING AND COOLING SYSTEM OPTIONS................................................5

3.1 Electric System Option (Existing or proposed)........................................................5

3.2 Fossil Fuel System Option (Existing or proposed)....................................................6

3.3 Geothermal Heat Pump (GSHP) System Option......................................................7

4.0 SIMPLE PAYBACK ANALYSIS OF OPTIONS....................................................................8

5.0 RECOMMENDATIONS AND SUMMARY.....................................................................11

6.0 SAVINGS VERIFICATION............................................................................................12

7.0 PROJECT IMPLEMENTATION SCHEDULE....................................................................13

APPENDIX A - SUPPORTING DOCUMENTATION...................................................................14

Appendix B - Manitoba Hydro Incentive Calculation............................................................15

[Upon completion, update Table of Contents by Right clicking over table, selecting “Update Field”, select “Update
Entire Table”, and select “OK”.]
1.0 Executive Summary

Provide executive summary of the feasibility study.

Include overview of system options, scope of study, customer costs and benefits, potential
winter/summer peak kW and kWh electricity demand, and energy savings of all options
considered.

Incentive eligibility

Recommendations
 2.0 Building Characteristics

Provide a description of the building including:

 Age and location (address)
 Total heated floor area
 Number of storey’s and wall height
 Basement or crawl space (partial or full)
 Approximate insulation levels in walls, roof or attic, under floor slab, on grade beam, and
basement walls of the building
 Window types and quantity (dual or triple), window/gross wall area % ratio
 Property site characteristics including lot size and potential availability of open areas for
installing ground loop heat exchanger or water wells
 If applicable, any other planned improvements, building envelope upgrades or additions
that would change the existing building loads that may be done at the same time if the
geothermal installation proceeds

If retrofitting an existing building, please provide a description of the existing heating, ventilation,
and cooling systems including:

 System type(s) and quantities

 Age and condition
 Equipment input and/or output ratings (Btu/h or kW) and equipment efficiency rating
 Building system zoning
 List all heating and other loads (e.g. cooking) served by the above equipment
 Fuel sources used by the existing systems.

Provide the weather normalized annual heating usage of the existing fuels and electricity of the
building in the following table.
Table 2.0A: Estimated Annual Space Heating Utility Usage
Peak Demand
Existing Utility Annual Energy Consumption
Winter Summer
Electricity XXX,XXX kWh XXX kVA XXX kVA

Fossil Fuel (type) XX,XXX m3 or L

Other Fuels (type) XX,XXX L

Provide the estimated weather normalized annual utility costs for the existing building. Provide a
description of the utility rate structure used in the calculations.
Table 2.0B: Estimated Annual Heating Utility Costs
Average Cost per
Existing Utility Annual Utility Cost
Volume

Electricity $XXX,XXX X.XX $/kWh

Fossil Fuel (type) $XXX,XXX X.XX $/m3 or $/L
2.1 Building Heating and Cooling Loads
Provide a summary of the heating and cooling loads of the building at design conditions.
The building heating and cooling loads shall reflect the loads in which the future system will be
designed for. Any planned upgrades to the existing envelope, windows, and/or lighting system
during the renovation period shall be included in the load calculations. Provide a description of any
planned energy efficiency upgrades to the existing building.

Table 2.1A: Estimated Building Design Heat Loss Load

Space Heating Loads Design Heating Load
Building Transmission Load XXX MBH XXX kW
Infiltration – Continuous Load XXX MBH XXX kW
Total Eligible Space Heating Loads XXX MBH XXX kW
Total Ineligible Heating Loads (if any) XXX MBH XXX kW
Total Eligible & Ineligible Loads XXX MBH XXX kW

Table 2.1B: Estimated Building Heat Gain Load

Space Cooling Loads Design Cooling Load
Building Transmission Load XXX MBH XXX kW
Infiltration – Continuous Load XXX MBH XXX kW
Infiltration – Intermittent Load XXX MBH XXX kW
Ventilation – Continuous Load XXX MBH XXX kW
Ventilation – Intermittent Load XXX MBH XXX kW
Internal Heat Load XXX MBH XXX kW
Solar Heat Load XXX MBH XXX kW
Total Cooling Load XXX MBH XXX kW
3.0 Building Heating and Cooling System Options

3.1 Electric System Option

Electric Heating System Description

Provide a description of the existing or proposed electric system including equipment sizes, number
of units, and unit efficiencies.
Provide the estimated annual energy consumptions for the electric system option for both the eligible
and ineligible space heating and cooling loads along with the estimated annual costs. Provide a
description of the blended rate used for the various loads as calculated in Appendix A.
Table 3.1A: Electric System Option Summary
Annual Energy Annual Energy Blended Average
Building Load
Consumption Cost Rates
Eligible Space Heating Loads XXX,XXX kWh $ XXX,XXX $ 0.XXX /kWh
Ineligible Heating Loads (if any) Served
XXX,XXX kWh $ XXX,XXX $ 0.XXX /kWh
with Electricity
Ineligible Heating Loads (if any) Served
XXX,XXX L $ 0.XXX / L
with Fossil Fuel $ XXX,XXX
XXX,XXX kWhe $ 0.XXX /kWhe
(provide name of fuel here)
Cooling Load XXX,XXX kWh $ XXX,XXX $ 0.XXX /kWh
Total Heating & Cooling Loads
XXX,XXX kWhe $ XXX,XXX $ 0.XXX /kWhe
(including kWhe fuel equivalents)

Electric Heating System Option Installation Costs

Provide estimated project costs that include equipment and material costs, and installation labour
costs. Electrical and fossil fuel service cost should be included in the project costs. If internal labour
or engineering is utilized, provide estimated number of hours and hourly rate in estimated project
costs. No contingency, GST, spare parts, and maintenance costs should be included in the estimated
project costs.
3.2 Fossil Fuel System Option

Fossil Fuel System Description

Provide a description of the existing or proposed fossil fuel system (excluding natural gas) including
equipment sizes, number of units, and unit efficiencies.
Provide the estimated annual fossil fuel and electricity consumption for the fossil fuel system option
for the space heating and cooling loads along with the estimated annual costs. Provide a description
of the blended rate used for the various loads as calculated in Appendix A.
Table 3.2A: Fossil Fuel System Option Summary
Annual Energy Annual Energy Blended Average
Building Load
Consumption Cost Rates
Eligible Space Heating Load XXX,XXX L $ 0.XXX / L
$ XXX,XXX
(provide name of fuel here) XXX,XXX kWhe $ 0.XXX /kWhe
Ineligible Heating Loads (if any) Served
XXX,XXX kWhe $ XXX,XXX $ 0.XXX /kWhe
with Electricity
Ineligible Heating Loads (if any) Served
XXX,XXX L $ 0.XXX / L
with Fossil Fuel $ XXX,XXX
XXX,XXX kWhe $ 0.XXX /kWhe
(provide name of fuel here)
Cooling Load XXX,XXX kWh $ XXX,XXX $ 0.XXX /kWh
Total Heating & Cooling Loads
XXX,XXX kWhe $ XXX,XXX $ 0.XXX /kWhe
(including kWhe fuel equivalents)

Fossil Fuel System Option Installation Costs

Provide estimated project costs that include equipment and material costs, and installation labour
costs. Fossil fuel and electric service cost contributions should be included in the project costs. If
internal labour or engineering is utilized, provide estimated number of hours and hourly rate in
estimated project costs. No contingency, GST, spare parts, and maintenance costs should be included
in the estimated project costs.
3.3 Geothermal Heat Pump (GSHP) System Option

If an electric heat base case has been adequately justified, a geothermal heat pump system sized to
provide up to 100% of the base building transmission and infiltration heating loads only will be
eligible for an incentive. Customers are not eligible for incentives for geothermal capacity installed to
serve ventilation loads.

It is not normally cost effective to size geothermal heating systems for non-continuous or
intermittent; heating loads (ventilation and door openings) therefore this capacity is not eligible for
incentive. Fossil fuels are considered the base case for these loads and ventilation loads.

Geothermal System Option Description

Provide a description of the geothermal heat pump system type being proposed (e.g. horizontal
closed loop, vertical open loop, etc.). Provide the estimated design heating and cooling capacities
and efficiencies of the proposed equipment required at design conditions. Provide a minimum of two
sizing options indicating what portion of the design space heating load (example: 50%, 70% or 100%)
that will be covered by geothermal heat pump system. Indicate what source of auxiliary heating is
used. Indicate the geothermal sizing criteria as a percentage of the base design heating load.

Provide the estimated annual utility consumption and costs for the geothermal heat pump options
for space heating and cooling.
Table 3.3A: Geothermal Heat Pump System Option Summary
Option A: XX% Sized (Smaller Option)
Annual Energy Blended Average
Space Heating Loads Annual Energy Cost
Consumption Rates
Geothermal Heating XXX,XXX kWh $ XXX,XXX $ 0.XX /kWh
Auxiliary Electricity XXX,XXX kWh $ XXX,XXX $ 0.XX / kWh
Auxiliary Fossil Fuel XXX,XXX kWhe $ XXX,XXX $ 0.XX /kWhe
Cooling Load XXX,XXX kWh $ XXX,XXX $ 0.XX /kWh
Total Load XXX,XXX kWhe $ XXX,XXX $ 0.XX /kWhe
Option B: XX% Sized (Larger Option)
Annual Energy Blended Average
Heating Load Annual Energy Cost
Consumption Rates
Geothermal Heating XXX,XXX kWh $ XXX,XXX $ X.XXX /kWh
Auxiliary Electricity XXX,XXX kWh $ XXX,XXX $ X.XX / kWh
Auxiliary Fossil Fuel XXX,XXX kWhe $ XXX,XXX $ X.XX /kWhe
Cooling Load XXX,XXX kWh $ XXX,XXX $ X.XXX /kWh
Total Load XXX,XXX kWhe $ XXX,XXX $ X.XXX /kWhe
Geothermal System Option Installation Costs
Provide estimated project costs that include equipment and material costs, and installation labour
costs. Electrical and fossil fuel service cost contributions should be included in the project costs. If
internal labour or engineering are utilized, provide estimated number of hours and hourly rate in
estimated project costs. No contingency, GST, spare parts, and maintenance costs should be included
in the estimated project costs.
4.0 Simple Payback Analysis of Options

Provide a summary of the estimated annual space heating and cooling utility consumption and costs
for all the options available to the building owner.

Table 4.1A: Summary of Estimated Annual Energy Consumption and Costs

Fossil Fuel GSHP System Smaller GSHP System
System Option Option A Larger Option B
Electric System
Option XX% Sized XX% Sized

Annual Electricity XXX,XXX kWh XX,XXX kWh XXX,XXX kWh XXX,XXX kWh
Consumption & Cost $ XXXXX $ XXXXX $XXXXX $ XXXXX

Annual Fossil Fuel XXX,XXX L XXX,XXX L XXX,XXX L XXX,XXX L

Consumption & Cost $ XXXXX $ XXXXX $ XXXXX $ XXXXX
Total Annual Energy Costs $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Provide a summary of the estimated annual savings, project incremental, and simple payback
compared against the electric and fossil fuel options for all the options available to the building
owner.
Annual Energy Cost Savings ($) = (Base Option Annual Energy Costs - Proposed Option Annual Energy
Costs)
Incremental Project Cost ($) = (Proposed Option Project Costs - Base Option Project Costs)
Provide the estimated simple paybacks in years compared against the Electric and Fossil Fuel Options
for all the options available to the building owner.
Simple Payback (Years) = (Proposed Option Project Costs - Base Option Project Costs) divided by
(Base Option Annual Energy Costs - Proposed Option Annual Energy Costs)
Base Options are the electric option and the fossil fuel option.
Manitoba Hydro incentives are available for only the unoccupied base building transmission and
infiltration load covered by the geothermal heat pump system. Appendix B contains the calculation
method for the incentive.

Table 4.1B: Summary of Incremental Costs, Savings & Simple Payback of all Options
Compared to Electric System Option
Fossil Fuel System GSHP System Smaller GSHP System
Option Option A Larger Option B
XX% Sized XX% Sized
Annual Energy Cost Savings $ XXX,XXX $ XXX,XXX $ XXX,XXX
Incremental Cost $ XXX,XXX $ XXX,XXX $ XXX,XXX
Simple Payback XX.X years XX.X years XX.X years
Simple Payback with Incentive XX.X years XX.X years XX.X years
Compared to Fossil Fuel System Option
 Electric System GSHP System Smaller GSHP System
Option Option A Larger Option B
XX% Sized XX% Sized
Annual Energy Cost Savings $ XXX,XXX $ XXX,XXX $ XXX,XXX
Incremental Cost $ XXX,XXX $ XXX,XXX $ XXX,XXX
Simple Payback XX.X years XX.X years XX.X years
Simple Payback with Incentive XX.X years XX.X years XX.X years

Provide a summary of the incremental project costs of the GSHP options available to the building
owner.
Incremental Project Cost ($) = (GSHP Option B Project Costs - GSHP Option A Project Costs)
Provide the estimated simple paybacks in years comparison between the two GSHP Sizing Options
available to the building owner.
Simple Payback (Years) = (GSHP Option B Project Costs - GSHP Option A Project Costs) divided by
(GSHP Option A Annual Energy Costs - GSHP B Annual Energy Costs)
Manitoba Hydro incentives are available for the unoccupied base building transmission and
infiltration load covered by the geothermal heat pump system. Appendix B contains the calculation
method for the incentive.
Table 4.1C: Summary of Estimated Annual Heating/Cooling Energy Cost Savings between the GSHP Options
Compared to GSHP Smaller Option A - XX% Sized
GSHP System Larger Option B
Description
XX% Sized
Incremental Annual Energy Cost Savings $ XXX,XXX
Incremental Cost of GSHP Option B to Option A $ XXX,XXX
Simple Payback of the Sizing Increment XX.X years
Simple Payback of the Sizing Increment with Incentives XX.X years
5.0 Recommendations and Summary

Indicate the system option recommended for implementation and the justification for its selection.
6.0 Savings Verification

Provide a brief description of how and when the energy savings verification could be accomplished if
desired by the customer or Manitoba Hydro.
Provide a description of testing instrumentation, measurement points, and the duration of testing for
the purpose of savings verification.
7.0 Project Implementation Schedule

Estimated Commencement Estimated Completion

Design Phase Month/Year Month/Year
Construction Phase Month/Year Month/Year

Provide any comments regarding the implementation schedule here.

Appendix A - Supporting Documentation

Provide the following information:

 Tabulated electricity and fossil fuel usage histories, new load estimates and utility/fuel costs
for the existing building system(s), if applicable.
 Design and annual heating and cooling load and costs calculations documentation for of all
options studied based on load calculations or estimated from billing usage histories.
 Degree day normalization calculations applied to billing usage histories.
 Load calculations.
 Detailed capital costs estimates.
 Electrical energy and demand or blended electricity rate saving calculations.
 Equipment performance data (manufacturers catalog data.
 Assumptions that were used in the calculations and estimates.
 Other supporting documents.
Appendix B - Manitoba Hydro Incentive Calculation

Conditional System Installation Incentive

The maximum incentive payable shall be the lesser of the following three methods:

1) Floor Area Based Method

Floor Area Heated by the Incentive

Geothermal System (f2) Factor Incentive ($)
($/f2)
XX,XXX f2 X $2.50 $ X,XXX.XX

2) Equipment Heating Capacity Based Method

Proposed Geothermal Space Incentive

Heating Capacity (MBH)1 Factor Incentive ($)
($/MBH)
XXX MBH X $120 $ X,XXX.XX

3) Building Heat Loss Based Method

Eligible Building Transmission & Incentive

Infiltration Heating Load (MBH)2 Factor Incentive ($)
($/MBH)
XXX MBH X $120 $ X,XXX.XX

Conditional System Installation

Incentive ($)
The lesser of the above three
calculation methods

$ X,XXX.XX

1. A geothermal heating system’s capacity in MBH (1 MBH = 1000 Btu/h), serving the unoccupied base
building transmission and infiltration heating loads only will be eligible for incentive.
Unit capacity based on CAN/CSA - C13256-1-01 Standard rating test - Liquid entering heat exchanger: Unit
heating capacity @ 32 °F EWT for closed loop ground heat exchangers OR 50° F for open loop ground heat
exchangers.
2. Attached a preliminary copy of the building heat loss calculations which includes a summary breakdown of
the unoccupied base transmission and infiltration loads.