Duluth, MN2025Geothermal + high-efficiency air handler

A geothermal retrofit for a 1912 lakeside estate

Replaced two aging boilers with a closed-loop geothermal system, cutting heating cost by 63%.

A geothermal retrofit for a 1912 lakeside estate

The challenge

The original scope came in as a straightforward replacement. Once we opened the mechanical rooms and pulled twelve months of BAS data, the picture shifted. What looked like an aging system was actually a design mismatch — the loads had drifted over two decades of tenant fit-outs, and the equipment was fighting the building.

The solution

A phased conversion. New equipment sized to the actual load, not the load stamped on the drawings. Controls rewritten. Sequences of operation rebuilt from scratch. The old system stayed live through six months of installation so tenants never lost service.

The result

First full winter: 41% reduction in energy cost against the prior year, normalized for weather. Peak demand down 32%. Zero occupant complaints for four straight months. And a client who is now on year three of a continuing maintenance contract.

What it cost

Flat-rate project pricing, quoted before work began.

$96,400
Total investment
Vertical loop field — 6 bores at 320 ft
$41,200
Water-to-air heat pump + variable-speed air handler
$28,600
Distribution rework and zoning (4 zones)
$14,900
Controls, commissioning, and airflow balancing
$7,100
Permits, decommissioning, and site restoration
$4,600

Before $21,300 in federal and state incentives — net $75,100.

Estimated annual savings
$7,900 / yr
Simple payback
9.2 years

Figures reflect this project's scope and conditions. Your building will price differently — get a scoped estimate.

Ready when you are

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