Geothermal Heat Pump
Ground-source heating and cooling using the earth's stable temperature.
About Geothermal Heat Pump
Geothermal (ground-source) heat pumps use the earth's constant underground temperature (50-60F year-round) to provide extremely efficient heating and cooling. While upfront costs are high, geothermal systems have the lowest operating costs of any HVAC system and qualify for a 30% federal tax credit with no cap.
Pros
- Lowest operating costs of any HVAC system
- Both heating and cooling (plus some hot water)
- 300-600% efficient (3-6x energy out vs in)
- 30% federal tax credit with NO cap
- Ground loop lasts 50+ years
- No outdoor unit or noise
- Not affected by outdoor temperature extremes
- Can reduce heating/cooling bills by 50-70%
Cons
- Very high upfront cost ($15,000-$35,000)
- Requires land for ground loop installation
- Disruptive installation (excavation required)
- Not all properties are suitable (soil, rock, space)
- Fewer qualified installers available
- Long payback period (7-15 years)
- Vertical loops add cost in rocky soil
Best For
- New construction with available land
- Rural properties with space for horizontal loops
- Homeowners planning to stay 10+ years
- Areas with extreme heating and cooling needs
- Those wanting lowest possible operating costs
- High energy cost areas (Northeast, Midwest)
Popular Geothermal Heat Pump Brands
Frequently Asked Questions
How much does geothermal save?
Geothermal typically reduces heating and cooling costs by 50-70% compared to conventional systems. A home spending $3,000/year could save $1,500-$2,100 annually.
What is the federal geothermal tax credit?
The IRA provides a 30% tax credit on the total installed cost with no cap (2023-2032). A $25,000 system yields a $7,500 tax credit. This is significantly more generous than the heat pump credit.
Does geothermal work everywhere?
Geothermal works in every US climate. The ground loop design varies: horizontal loops need more land, vertical loops work on smaller properties but cost more. Soil conditions affect installation method and cost.
System Capabilities
Other Systems
Estimate Your Cost
Use our calculator to estimate Geothermal Heat Pump costs for your home.
Cost Calculator