Simply stated a heat pump is an electrically driven mechanical device which absorbs heat energy at one location and transfers it to another. Geothermal heat pumps use the natural heat storage ability of the earth or the earth's groundwater to heat and cool your home or business. 'Heat pump' is only another manner of saying 'refrigeration device'. We are all familiar with air conditioners, home refrigerators, dehumidifiers, and ice-cream coolers, these devices could also be correctly termed 'heat pumps' since the principle of operation is to remove heat from one place and transfer it to another.
The principle of the "heat pump" or 'refrigeration machine' was discovered during the 18th century by Lord Kelvin, a prominent British scientist.
In 1834, Jacob Perkins, an American engineer, designed an apparatus which artificially produced ice and was the forerunner of our modern vapor compression systems.
In 1918, Kelvinator Company marketed the first automatic refrigerator and in 1926, General Electric introduced the first "hermetic'' or sealed compressors, a design which is still in use today.
A heat pump can move 3.5 to 4.5 times more heat to or from a building than the energy required to operate it. The energy efficiency of heating equipment can be compared by looking at the rated COP or Coefficient of Performance of the unit.
The COP of an electric furnace is 1, since each watt of electricity put into it produces the equivalent of 1 watt of heat energy out. The COP of a NORDIC unit is 3.5 or greater. Each watt the heat pump uses to run its transferring mechanism enables it to draw 2 or more from the earth thus giving a total of 3 or more units out for every 1 unit put in. The heat pump supplies more than 2/3 of your energy requirement from free energy stored in the earth and reduces your heating cost by at least 66%.
One of the innovative features of the NORDIC unit is its ability to provide "free" hot water during summer operation. Btu output actually increases during hot water making cycles and the recovery rate is similar to that of a 40 gallon electric hot water heater. Hot water is also provided during winter operation at a saving of 65-70% less than the cost of heating the water with an electric hot water heater. A typical homeowner can expect this feature alone to save him 20 to 30% of his/her present electric bill.
The efficiency of a heat pump depends upon the temperature at which it finds its heat (source temperature) and the temperature at which it discharges this heat (sink temperature). The greater the difference between the source temperature and sink temperature, the more work is done by the compressor in the heat pump; and consequently, the more cost. In other words, as the source temperature declines, so will the efficiency of the heat pump. The prospective buyer will naturally choose the type of heat pump (air source vs. ground source) which gets its heat from the source that remains at the highest temperature for most of the year. During the heating season in our part of Canada (Atlantic Provinces), our mean ground water temperature will remain 47°F (8°C) where the mean winter air temperature is approx. 12°F (-10.4°C). It is for this reason that seasonal efficiencies of a ground source heat pump are much higher than an air source.