Feasibility of closed loop ground source heat pump for residential heating and cooling applications in Serbia

Abstract

Households sector in Serbia presents a great chance for energy savings and introduction of RES in the future. The public policies in Serbia are currently limited, but this kind of study can influence public measures that would undeniably generate long-term social and economic benefits to the country. The aim of the present work is to assess economic feasibility of closed loop heat pump systems for heating and cooling purposes in Serbia?s residential sector. The heat pump system was compared to the most commonly used heating fuels in households. Results indicate that the implementation of ground closed loop heat pump systems for heating and cooling purposes in Serbia?s residential sector as a substitute for electric heating is economically feasible. Inadequate prices of natural gas and electricity in public supply are the main problems associated with the project?s financial benefits. The best results were obtained in the scenario with combined debt ratio (40%) and grants (~30%) for the project realization, for which equity pay-back period is approximately three years, while benefit to cost ratio is 2.52. Investigated financial metrics (equity pay-back, internal rate of return assets and net present value) indicate the same positive results considering financial viability of the project.