Homeowners looking to increase their home’s efficiency might consider switching to a geothermal heat pump system.
Besides being energy-efficient, these pumps are eco-friendly since they don’t burn gas or oil and use significantly less electricity than other HVAC systems.
Geothermal heat pumps offer several other benefits, making them an increasingly popular heating option.
How A Geothermal Heat Pump Works
A geothermal heat pump is a renewable heating and cooling system that keeps your home comfortable year-round.
In the wintertime, it pulls cold air from your home and runs it through underground pipes filled with liquid.
Once the air warms up, the pump draws it and releases it into your home.
This process reverses in the summer, with warm air being pulled from the house and cooled underground.
Heat pumps are substantially more energy-efficient than conventional HVAC systems since they don’t burn fuel to operate. They simply move heated or cooled air from one place to another.
How Much Does A Geothermal Heat Pump Cost?
Installing a geothermal heat pump typically costs between $10,000 and $30,000, with most homeowners paying around $12,000 for the project.
The exact cost depends on multiple factors, including the plot and house size, system configuration, and soil conditions.
The installation cost can go up to $45,000 for higher-end models that require extensive excavation and ductwork modifications.
In total, a geothermal system can cost up to 50% more than a conventional HVAC system.
Cost by Geothermal Heat Pump Type
Geothermal heat pumps come in several types based on their system configuration.
Broadly speaking, these types can be categorized into open and closed-loop systems.
Besides their design, these systems differ in price.
| Geothermal Heat Pump Type | Average Total Installation Cost |
|---|---|
| Horizontal System | $10,000-$30,000 |
| Vertical System | $20,000-$40,000 |
| Pond/Lake System | $12,000-$32,000 |
| Hybrid System | $6,000-$10,000 |
| Open-Loop System | $10,000-$25,000 |
Horizontal Geothermal Heating System
A horizontal system is a closed-loop system that consists of layered coils or runs of polyethylene pipes placed in 6-foot-deep trenches.
This system requires a lot of open space.
However, this is also the cheapest closed-loop system, with installation costs ranging from $10,000 to $30,000.
Vertical Geothermal Heating System
A vertical system is also a closed-loop system.
This system requires drilling smaller holes, making it perfect for homeowners with limited space.
The holes are usually 4 inches in diameter and placed approximately 15 feet apart and up to 400 feet deep.
After drilling holes, two pipes are inserted and connected at the bottom.
A vertical-loop system is the most expensive closed-loop system. Its installation costs start at $20,000 and can go up to $40,000.
Pond/Lake Geothermal System
Another closed-loop system, the pond or lake geothermal system, costs between $12,000 and $32,000 to install.
Homeowners can install this system if they have a water source on their property deep enough to handle coils placed at least 6 feet deep.
The closer the water source, the less expensive the installation.
Naturally, this system draws heat from water rather than the soil.
Hybrid Geothermal Heat Pump Systems
Homeowners can adapt geothermal heat pump systems with traditional HVAC technologies to create the most efficient heating and cooling solution for their climate.
These flexible hybrid models are ideal for extreme climates or areas where a standalone heat pump isn’t practical.
The exact cost of these systems depends on their configuration but generally averages around $8,000.
Open-Loop Geothermal Heating Systems
In general, open-loop systems are easier to install and, thus, cost less than closed-loop systems.
Installing the open-loop geothermal heating systems cost from $10,000 to $25,000.
Geothermal Heating Cost per Month
Geothermal heating is significantly more energy-efficient than other heating systems.
The cost of running a correctly sized geothermal heat pump is between $100 and $200 per month.
Geothermal Heat Pump Cost per Ton
The cost of a geothermal heat pump can also depend on its size measured in tons.
The required number of tons depends on the home size.
Most homes require systems between 3 and 5 tons.
| Geothermal Heat Pump Size | |
|---|---|
| 3-Ton Pump | $11,000-$19,000 |
| 4-Ton Pump | $13,500-$21,000 |
| 5-Ton Pump | $15,000-$23,000 |
| 10-Ton Pump | $30,000-$45,000 |
Did you know? One ton equals 12,000 BTUs (British thermal units).
Cost of a 10-Ton Geothermal Heat Pump
A 10-ton geothermal heat pump is a powerful system that requires a sizeable investment.
It typically ranges from $30,000 to $40,000 for a horizontal-loop system and $32,000 to $45,000 for a vertical one.
Cost of a 5-Ton Geothermal Heat Pump
The price for a A 5-ton geothermal heat pump is between $15,000 and $20,000 for a horizontal-loop system and $16,500 to $23,000 for a vertical-loop system.
Cost of A 4-Ton Geothermal Heat Pump
Installing a 4-ton horizontal loop system runs between $13,500 and $18,000.
Its vertical counterpart will cost from $15,000 to $21,000 to install.
Cost of a 3-Ton Geothermal Heat Pump
Homeowners requiring a 3-ton horizontal-loop geothermal system should expect to pay between $11,000 and $16,000.
The vertical loop system will run slightly more, from $13,500 to $19,000.
Other Geothermal Installation Cost Factors
Various factors play a role in the cost of installing a geothermal heat pump.
Understanding how each one shapes the final price can help homeowners estimate the project’s total cost and stick to their budget.
Geographic Location
Installation costs for a geothermal heat pump can depend on the property’s geographic location.
For instance, this project can be completed for less than $10,000 in cities like Minneapolis and Chicago.
At the same time, property owners in Pittsburgh might have to pay over $50,000.
Soil Composition
Geological conditions are essential for total cost estimation.
Particular soil types can damage the heat pump prematurely. For this reason, homeowners must invest in more expensive materials for the ground loops.
Also, the soil type dictates whether the pipes can loop and overlap or must lay straight. The former placement is significantly less expensive.
Site Conditions
Site accessibility plays a prominent role in the final cost of the geothermal system installation.
The installation cost will likely increase if contractors can’t easily access the property with their heavy-duty machinery.
Pro Tip: Clear all the obstacles you can before requesting a labor cost assessment. This can help decrease costs and give DIY-savvy homeowners a chance to participate in this project.
Square Footage
The size of the necessary geothermal system greatly depends on the home’s square footage.
Naturally, the bigger the house, the more extensive the geothermal system requirements.
This, in turn, implies more materials and additional labor, thus increasing the overall project cost.
New Construction vs Retrofit
If installed in a newly constructed home, the geothermal heat pump will require a substantially smaller investment.
The lower cost results from the absence of ductwork, making the installation process pretty straightforward.
Houses with existing HVAC systems sometimes require several alterations, whose costs can quickly add up.
In fact, retrofitting an existing HVAC system can cost up to 40% more than installing a new geothermal system from scratch.
Installation Location and Complexity
Installing a geothermal system on properties in open fields with minimal obstacles will cost less than trying to fit pipes beneath a driveway on a busy property.
Basically, any impediments involved in the installation process will likely result in higher labor costs.
Energy Efficiency Ratio
Every geothermal heat pump has an EER (Energy Efficiency Ratio) rating measuring how well it uses energy.
The best heating systems have an EER rating between 13 and 18: the higher this number, the more efficient the system.
Similarly, pumps with a higher EET rating are typically more expensive.
Did you know? The EET rating is a ratio that puts the heat removed from a house over the total electricity required.
Local Regulations
Installing a geothermal heat pump is a huge undertaking that requires a few permits and inspections to ensure compliance with local regulations.
These permit-related costs typically range from $100 to $600.
Open Loop Regulations
Homeowners with open-loop systems will have to pay fees for discharging groundwater into ponds.
The exact cost depends on the system’s size but usually runs between $2,500 and $10,000 annually.
Rebates and Tax Credits
So far, the discussed factors have all added to the total cost of installing a geothermal heat pump.
Luckily, there’s a factor that allows homeowners to reduce this cost significantly.
Thanks to the Inflation Reduction Act of 2022, homeowners can save up to 30% of the total installation costs in tax credits, provided they choose an ENERGY STAR-qualified system.
Depending on the selected system, these savings can equate the cost of a geothermal installation with a conventional HVAC system.
Homeowners should also check with their state and local governments and utility companies, as they often offer rebates and incentives for installing a geothermal system.
Closed vs Open-Loop Geothermal Heating Systems
Closed-loop geothermal heating systems consist of underground pipes filled with a heat-transfer solution.
These pipes connect to a system heat pump indoors that provides temperature control. This system involves circulating the heat between the indoor pump and the solution.
In contrast, open-loop heating systems use sealed pipes that don’t circulate any solution.
Instead, they transfer clean groundwater to the indoor geothermal pump.
The water doesn’t circulate. Instead, it goes through a discharge well into a drainage ditch or a local pond.
Water-to-Air vs Water-to-Water Pumps
Water-to-air geothermal pumps consist of a water coil connected to the looping pipes and an air coil connected to the home’s air ducts.
The water-to-air system is intended to heat or cool air, depending on the season.
In contrast, a water-to-water pump is designed to heat and cool water for residential or commercial purposes.
The water-to-water pumps consist of two water coils, one connected to the looping pipes and the other to a buffer tank.
The water circulates through the piping and gets heated or cooled.
How To Save Money On Geothermal Heat Pump Installation Cost
Installing a geothermal system comes with a sizeable upfront cost.
Fortunately, homeowners can save money on this cost in a few ways. These include:
- Inquiring about rebates. Rebates and tax credits can significantly lower the installation cost.
- Shopping around for a contractor. Since this installation project is still relatively new and uncommon, contractors can offer a wide range of cost estimates.
- Investing in insulation. Well-insulated homes can get away with a smaller and, thus, less expensive pump.
- Avoiding systems with unnecessary features. A contractor should help determine which features are worth the money.
What Are The Advantages Of Geothermal Energy?
Geothermal energy is a promising energy source that is still largely untapped. It has many advantages that might convince homeowners geothermal energy is the way to go.
This energy is:
- Renewable
- More eco-friendly than conventional fuel sources
- Sustainable
- Reliable
- Ideal for both heating and cooling
- Rapidly evolving
What Are Three Disadvantages Of Geothermal Energy?
Geothermal energy has a few challenges that must be overcome to exploit this powerful natural resource fully.
- Geothermal energy is location-specific, making it inaccessible for some homeowners.
- Digging and drilling holes during the installation process releases certain gases into the atmosphere.
- Tapping into the geothermal energy resource is costly.
Other Energy Efficiency Improvements
Most homeowners decide to install a geothermal system for its energy-saving potential.
Here are some additional ways to improve energy efficiency before, during, or after installing a geothermal heat pump.
Home Insulation
Upgrading home insulation before installing a geothermal system can dramatically reduce its cost and save a lot of energy in the long run.
On average, insulating a home costs $3,000.
Energy-Efficient Windows
Installing energy-efficient windows can stabilize the home’s temperature and reduce geothermal energy use.
These energy-saving windows cost between $300 and $1,000 each.
Home Energy Audit
A home energy audit reviews the home’s energy performance, pinpointing where it leaks or loses energy.
Homeowners can expect to pay around $400 for this service.
Air Handler and Ductwork
Upgrading older or damaged ductwork can boost the home’s energy efficiency.
Unfortunately, this project can be quite a budget buster during a geothermal system installation.
Some pumps require ductwork modifications, costing up to $20,000.
Who Should Consider A Geothermal HVAC System?
Ideally, a geothermal HVAC system should be installed in a newly built house.
This way, homeowners avoid the high costs of retrofitting.
Other individuals who should consider this energy-efficient system include homeowners who:
- Have existing homes with high heating and cooling bills
- Are looking for a new HVAC system and can afford the initial cost
- Are planning to stay in their house long-term
- Live on large lots with a well or a pond
Geothermal vs Air-Source Heat Pump
Air-source heat pumps can provide efficient heating and cooling for a home.
They are much cheaper to install than geothermal heat pumps.
However, this is where the air-source pump’s advantages over its geothermal counterpart stop.
Geothermal heat pumps are significantly more energy-efficient. They can heat or cool a house and sometimes even provide it with hot water.
A geothermal system requires less maintenance, has a longer life expectancy, and operates much more quietly.
Can I Install A Geothermal HVAC System Myself?
Installing a geothermal HVAC system is not a DIY-friendly process.
It requires extensive expertise to design the system around various factors, such as climate, soil conditions, and water accessibility.
Then, it calls for great precision to ensure the system gets installed correctly and lasts for decades.
Did you know? For a geothermal system to work efficiently, the heat pump, radiator, and ground collector must be sized correctly. Otherwise, the system will perform poorly and at much higher operating costs.
Homeowners who are adamant about a DIY installation can tackle specific steps of the installation process independently, provided they have the necessary skills and equipment.
These include digging the trenches for a horizontal-loop system and prepping the indoor and outdoor sites to ensure accessibility.
How To Tell If You Have A Geothermal Heat Pump
Geothermal heat pumps have two components: inside and outside the house.
To determine whether you have a geothermal heat pump, check the label on the outside’s system components.
If it only displays a brand and a model number, look it up online to obtain more information.
Most Reliable Geothermal Heat Pump
ClimateMaster models are considered the most reliable and efficient geothermal heat pumps on the market.
When Can A Geothermal Heat Pump Be Used?
A geothermal pump can be used year-round.
What Is The Best Geothermal Heat Pump Brand?
ClimateMaster is the best geothermal heat pump brand.
Where To Buy A Geothermal Heat Pump
You can buy a geothermal heat pump from multiple online and store dealers, from Amazon and eBay to established heat pump brands such as ClimateMaster, WaterFurnace, and Dandelion Energy.
What Size Geothermal Heat Pump Do I Need?
The required size of the geothermal heat pump depends on multiple factors.
Some are more straightforward, like the house’s size.
The others require more extensive research, such as the soil type and the climate.
For this reason, it’s best to seek a professional evaluation to ensure the system is correctly sized and, thus, efficient.
Did you know? When it comes to a house’s size, the square footage counts, not the number of stories or rooms.
How Much Space Is Needed for A Geothermal Heat Pump?
The necessary space depends on the type of geothermal heat pump being installed.
Horizontal-loop systems require the most space. For instance, an average 2,000-square-foot house needs 400 feet of 2-foot-wide trenches.
When Will A Geothermal Heat Pump Run Out?
Geothermal heat pumps last significantly longer than conventional HVAC systems.
These pumps should be in use for at least 25 years.
What Is The Lifespan Of A Geothermal Heat Pump?
The exterior components of a geothermal heat pump can last up to 50 years, while the interior parts have an average lifespan of around 25 years.
Is A Geothermal Heat Pump Cost-Effective?
Yes. A geothermal heat pump is the most cost-effective system for heating and cooling.
How Much Money Does A Geothermal System Save?
Homeowners using a geothermal system can save up to 70% on heating costs and up to 50% on cooling costs compared to traditional HVAC systems.
This translates to saving approximately $1,500 annually.
Are Geothermal Heat Pumps Worth The Money?
The upfront installation cost of a geothermal heat pump is undoubtedly high.
However, the geothermal system is up to 600% more energy-efficient than traditional HVAC solutions.
As a result, homeowners will realize a return on their investment relatively quickly.
Afterward, they will enjoy affordable utility bills.
This makes geothermal heat pumps worth the money in the long run.
Investing In The Future
A geothermal heating pump is unquestionably the most efficient way to heat and cool your home.
This upgrade is a no-brainer if you can afford the initial installation cost and meet the installation requirements.
It will keep your home comfortable for decades without skyrocketing energy bills.
