Genoa company offers low-temp geothermal

While many look up in the sky to see the future, three partners in a new energy system company are looking down, approximately 5-6 feet underground.

"It's a rock-solid investment," said Genoa resident Bruce Sanguinetti, director of sales, marketing and operations of Sierra Eco Systems.

In the spring of 2010, Sanguinetti met in a local coffee shop with Ric Rowlatt, who had moved to the area to supervise construction of the Douglas County Jail, and Fish Springs resident Pete Frigo, who had more than 25 years experience in the air system industry. The three men formed Sierra Eco Systems, a provider of low-temperature geothermal heating and cooling systems for residences and offices.

Last week, they were still joking whether they'd written the business plan on the back of a napkin or yellow legal pad. Either way, they've managed to dial in their product and hit the regional market hard.

Since the company's inception 15 months ago, the three partners have installed a dozen systems on both sides of the Lake Tahoe Basin. Of the dozen projects, at least a third have been installed in Carson Valley. Five more systems are in the works.

"The summation of all this is three parts Earth energy for every one part electricity," said Sanguinetti. "It's the most efficient system out there. It can reduce 70 percent of your energy costs."

The science is simple. Because the ground absorbs solar energy, the temperature remains constant about 5-6 feet beneath the surface, despite weather conditions above.

In this region, Rowlatt explained, the average underground temperature is nearly 60 degrees Fahrenheit. The differential between the surface and ground temperature is what enables the transfer and concentration of energy.

In the winter, water is circulated under ground in a closed loop system. The ground heats the water, which is then transferred to a Hydron module in the residence, about the size of a normal furnace, where it passes through a compressor and electric heat exchanger. The heat is distributed through either a traditional forced-air duct system or radiating floor system. The module also generates domestic hot water.

The process may sound more complicated than it is. Essentially, the system captures latent energy in the ground and concentrates it in the home.

In the summer, the process is reversed. The system transfers heat from the house to the underground loop, where the water is cooled and then cycled back as the cooling agent in air conditioning.

The ground-source technology, the partners said, was first developed in the Midwest during the early and mid 20th Century.

"One out of three homes use it in the rural Midwest," Rowlatt said.

"The U.S. installs about 50,000-100,000 systems a year, compared to over a million a year in Europe," Sanguinetti added. "This is used in Europe, Japan, China. Fifty percent of homes in Iceland use this technology. We're behind many other nations."

But that doesn't mean there's not demand in the U.S. market. Sanguinetti said that federal tax credits, along with financing options, make the initial up-front cost more palatable. He contends that future cost-savings alone are more than enough to finance a project.

"We actually install a monitoring system, which is part of the total package, to put our money where our mouth is," he said, "so we can show you how much you saved by the end of the year."

Rowlatt said geothermal is especially beneficial to propane users. For example, he said a propane-heated, 3,700-square-foot residence in the Foothills saw its energy costs drop from $5,000 a year to $1,000 a year after installing geothermal. Switching from propane, he said, a geothermal system would pay for itself in about three and a half years.

"Replacing natural gas, you still save money, but it's not quite as dramatic," Sanguinetti said.

It doesn't hurt that the company keeps its overhead low to stay competitive. Equipment is housed near the old Settelmeyer bull barn off Willowbend Road in Genoa, where both Rowlatt and Sanguinetti live. A 20-foot mobile workshop (a former racing trailer) allows the crew to quickly install and service systems throughout the region.

"Our goal is to not disrupt them," Sanguinetti said. "They're either in the hot or cold season, so we have to get in and out fast. We treat each home like our own."

Sierra Eco Systems also relies on Minden-based Blue Ribbon Personnel for semi-skilled labor, as well as on other local subcontractors.

"From excavation to supplies, we put a lot of people to work on these projects, not just ourselves," Sanguinetti said.

If requested, the company will partner with a solar electricity contractor to set up a renewable power source for the geothermal system.

"That cuts things down to about 5 percent of original costs," Sanguinetti said. "That's the ultimate way to get off the grid."

Rowlatt noted that demand for geothermal arises proportionally with awareness.

"Ninety percent of our time is spent on education, and only 10 percent selling the product," he said.

To better explain the technology, Sierra Eco Systems is hosting a free 30-minute seminar 10 a.m. Sept. 10 in Lampe Park as part of the fifth annual Green Living Festival.

For more information, visit www.sierraecosystems.com.