Walking the Walk
An interview with GEO president and CEO Douglas Dougherty
Editor’s Note: Mr. Dougherty assumed the position of
president and CEO of GEO - The Geothermal Exchange Organization, on March 19, 2011. GEO is a non-profit trade association representing the economic and political interests of its member companies, including all facets of the U.S. geothermal heat pump industry, from manufactur- ing and system design to sales and installations.
Describe your prior career involvement with geot-
hermal heat pumps. In 1986, I joined Soyland Power Cooperative, a genera-
tion and transmission cooperative in Illinois. My job in marketing development led me to geothermal heat pumps (GHPs). At the time, there was no stocking distributorship in the state for any geothermal manufacturer — no dealer network and no training. I developed a for-profit business plan for a co-op subsidiary that filled that void, which I oversaw from 1987 to 1995. We created a robust dealer network and a successful market for GHPs in Illinois through the electric co-op distribution system. Since then, I have worked in executive positions for
state government and ran a major industry association since then, but my heart remained with geothermal. When the GEO board of directors asked me if I would like to head up a new national association for GHPs, I jumped at the opportunity. I just wanted to be a part of it again and was happy at the chance to be re-engaged with the indus- try.
How does your prior association and political experi-
ence fit with GEO? For the past 13 years, I ran a state association represent-
ing the telecommunications industry, and I think it tracks very well with my new position. My responsibilities as a state association executive included addressing public pol- icy issues, testifying before legislative committees and working at the cabinet level with the governor’s office and agencies. Geothermal is a different industry, and GEO has a national focus — but the legislative process is the same. I am comfortable working with legislators and legislative staff, and I know how to shape the issues and present them to legislators. That includes describing our industry, what our needs and desires are and how public policy can be shaped to help our industry create jobs. What are your thoughts about GHPs and our
nation’s energy policy? The GHP industry clearly has a role to play in this coun-
try’s will to become more self-sustaining and environmen- tally friendly and less dependent on foreign oil. It’s impor- tant to know that 40% of all the energy consumed in this country is for the thermal loads of buildings. We can sig- nificantly impact that energy dependency simply by installing GHPs. That’s a really big deal — especially con- sidering how small a part of the heating and air condition- ing market that we are right now. If the industry can expand to a million units annually
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over the next few years, it’s a tremendous opportunity that will create 100s of thousands of new, well-paid jobs. It’s exciting to represent an industry that can have such a sig- nificant impact on this country’s energy policy and use. That includes reducing the country’s carbon footprint, cut- ting peak electricity loads of utilities and lightening strains on the transmission grid. What lifestyle changes have you made since taking
your position with GEO last March? When you are in a position like mine, I believe you
should “walk the walk.” I have made lifestyle decisions to be more energy efficient and reduce my personal carbon footprint. To replace my prior corporate vehicle, I bought a hybrid car (my new license plate reads “MOREGEO”), and I’ve retrofitted my home with a GHP system. It has cost me money, but the payback is there. My car will pay for itself over time, and I predict that my geothermal sys- tem will pay for itself in less than five years — probably closer to four. It makes sense, and I can tell my story as an example of how people can become more energy efficient and save money with GHPs. Describe your home GHP heating and cooling system
retrofit and its economics. My first consideration was, did I have enough land area
for the geothermal loop boreholes? Based on load calcula- tions, I needed a 5.5-ton unit so conversely five boreholes 180-ft. deep for 1,800 ft. of 3/4" loop pipe. We decided we could fit them in my side yard. The second consideration was getting a drilling rig in to do the job. There were land- scaping, trees and my neighbor’s yard to consider, but we designed the system so that it could be done installed with minimal disturbance. Inside the house, we determined that most existing duct-
work could be used, with a fairly significant redesign where it met my old furnace. This was probably the biggest “unknown” going into the project — how much of the existing ductwork we could use. Another big consideration was getting the GHP unit into my basement. We managed to get it down my basement steps with a lot of blood, sweat and tears. The job was completed in late July, and the unit is working perfectly. My total cost for the loop, the unit and the installation is approximately $18,000. After a $5,400 federal income tax credit and a rebate of $2,500 from my local municipal electric utility, my out-of-pocket cost will be around $10,000. I should save a little more than $2,000 per year on my heating and cooling costs, so I am predict- ing payback on a $10,000 outlay will be between four and five years. But If I include replacement for my 27-year old standard HVAC system that I would have had to do any- way, my payback is immediate. What are your immediate and future goals for GEO? We have a number of barriers to GHP industry growth, so GEO’s approach must be multi-faceted. Barriers include
everything from consumer awareness to high upfront costs Continued on page 46
October 2011
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