Highlights
A geothermal heating unit costs $14,240 on average.
The pump type, installation, and ductwork will all impact cost.
Geothermal heat doesn’t rely on fossil fuels.
A geothermal system lasts twice as long as conventional heating.
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As the days get longer and the air turns chilly, it’s tempting to look for ways to keep the utility bill down while maintaining a comfortable temperature in your home. But what about a larger investment that improves the efficiency of your home and HVAC system? For many people, geothermal heating provides a significant, long-term cost-saving option. Here’s what you need to know when considering if a geothermal heat pump is worth it for your home.
What Is Geothermal Heating?
Under the Earth’s surface is a constant source of heat, increasing at an average rate of approximately 1°F for every 70 feet in depth, according to the Environmental Protection Agency (EPA). Using this consistent, renewable heat source can offer people an alternative source of energy and heating and cooling capabilities. Geothermal heat pumps capture the heat below the ground’s surface, where it stays at a consistent temperature somewhere between 45 and 75 degrees, depending on how low in the ground you’re measuring the temperature and the time of year.
How Does Geothermal Heating Work?
A geothermal heat pump circulates cold air from your home through a system of underground, buried pipes. The subsurface temperatures heat the air before flowing it back into the pump, which distributes to your ductwork throughout your home. The same process describes how a geothermal unit can also be used for cooling—warm air flows down into the pipes and discharges its heat into the cooler soil surrounding the pipes. The ground temperature then cools the above-ground air, which is pushed back to the heat pump and out into the ductwork.
How Much Does a Geothermal Heat Pump Cost?
The average geothermal heat pump costs between $20,000 and $25,000. This project cost includes labor, parts, and installation. The area you live in, the terrain around your home, and the insulation in your home all impact the final price. Additionally, the finishing touches for the project may add to your cost. These can include things like upgrading your home’s ductwork and re-sodding the yard.
Pros and Cons of Geothermal Heating
Geothermal heating requires a significant up-front cost and many installation considerations, but it checks a lot of boxes for well-suited homes. Here’s how it stacks up with pros and cons, also taking into consideration its comparison with a natural gas furnace.
| Pros | Cons |
|---|---|
| High efficiency | Expensive up front |
| Energy savings | Need lots of space |
| Longest life span | Soil dependent |
| Reliable |
Pros
A geothermal heat pump system can be three to four times more efficient than the highest-efficiency air-source units. According to the U.S. Department of Energy, investing in a geothermal heat pump can help you decrease your energy consumption by 25% to 50% compared to traditional systems that use air.
Plus, geothermal units have longevity. A geothermal system lasts about twice as long as a conventional air-source unit. Geothermal units last for about 20 to 25 years, while a traditional furnace typically runs for around 15 to 20 years, and HVAC comes in at about 10 to 15 years.
Additionally, geothermal is a more reliable source of renewable energy than other alternatives, like wind and solar power. The power you get from the ground will be more dependable because the earth stays at a relatively consistent temperature, unlike unpredictable wind and sunlight.
Cons
The biggest hurdle to overcome with a geothermal heating unit is the upfront cost of investment. While the cost will likely pay itself off over the next decade, the project will still require a significant amount of financing to get underway (30% to 40% more than a traditional furnace and air conditioner).
The second potential pitfall is that certain locations aren’t compatible with geothermal heating. You need a lot of space and a specific type of soil to install a geothermal unit. Dense soils (like those that are clay-based) or rocky soil will make installation much more difficult and costly.
What to Expect When Installing a Geothermal Unit
Photo: JenniferPhotographyImaging / E+ / Getty Images
Factors that will impact your project cost include the size of your home, your yard’s terrain, and the climate you live in. All of these factors are typically taken into account when the installer uses the Manual J method or load calculation when making a recommendation for the size of your geothermal system.
Types of Geothermal Heat Pumps
A horizontal geothermal system is the most common type for residential areas. The closed loop system is made of pipes buried 4 to 8 feet deep. Because the long, winding trench to bury the pipes requires more space, this system works better for homes with at least a quarter of an acre of land.
Vertical systems require pipes to travel 100 to 400 feet down into the earth and are, obviously, the more expensive of the two options because of the installation depths. However, they are just as effective as horizontal systems and, oftentimes, the only option for city or suburban properties that have less space available for piping.
Climates Best Suited for Geothermal Heating and Cooling
Geothermal heating works best for climates with a bigger variation between seasons and colder winters. This includes much of the northern and midwestern United States that gets a lot of snow and ice. Locations with sweltering summers and mild winters will likely not have as much of a need for geothermal heating. Still, geothermal heating and cooling can be helpful no matter where you live if you're looking to save money on energy costs.
Bottom Line: Is Geothermal Heat Installation Worth the Cost?
Between its long life span and offset in energy cost savings in 5 to 10 years (according to the U.S. Department of Energy), geothermal provides a compelling solution for people looking for a substitute for conventional furnaces and fossil fuel prices. Plus, according to ENERGY STAR®, you can claim 30% of your project cost (or a maximum of $600) for geothermal heat pump products purchased and installed between January 1, 2023, and December 31, 2032, as an incentive to switch to a renewable energy source. For a quote or more installation information, consider contacting a geothermal installation company near you.
