Enter your zip to
find local pros.


Geothermal Heat Pump Installation and Cost

Average cost range:

$15,000 - $38,000

To install a geothermal heat pump in 2,000 square foot home will cost between $15,000 to $38,000 based on the system size and loop type. This is double the price of of a conventional HVAC system, but the savings on utility bills will be beneficial in the long run.

Find the best HVAC contractors in your area.

What is a Geothermal Heat Pump?

A geothermal heat pump, referred to as a ground source heat pump, uses the constant ground temperatures of the earth to heat and cool the air while using less energy than traditional systems.

Using the ground as an exchange medium is in stark contrast to other heat pump systems, which rely on outside air temperatures to provide the conditioned air. This makes a geothermal heat pump a highly efficient option for homeowners, which can lead to significant energy savings.

Geothermal vs Air Source Heat Pump

Today’s energy conscious homeowners have many efficient options from which to choose regarding heating and cooling options rather than just installing a new central ac unit for their homes. Among them, a geothermal heat pump is one of those options that is growing in popularity across the country.

A geothermal heat pump can both heat and cool as well as provide domestic hot water with some models. Other options available with a geothermal heat pump include variable speed fans and two-speed compressors, which increase their efficiency in both performance and energy savings. The initial cost to install is much more expensive than the cost of a new air source heat pump, but the energy saving possibilities are greatly advantageous in the long run. A Geothermal HVAC system requires less maintenance, are quieter and have a longer life expectancy than any other heat pump unit such as a ductless heat pump system.

Some manufacturers combine the best of both worlds of a geothermal and an air-source heat pump. These models are referred to as a dual-source heat pump. Although these units are more efficient than a standard air-source heat pump, they fall short when compared to a stand alone geothermal system. One advantage of a dual-source system is that they are often less expensive to install.

Geothermal Heat Pump Installation

Installing a geothermal heat pump does not come easy as the system can cost several times that of a traditional air-source system. Just the heat pump costs around $2500 to $5000, but installing the whole system can range from $15,000 to $38,000 for a 2,000 sq. ft. home. This cost is based on the size of the system being installed, its basic components, loop type of the pipe that goes in the ground, excavation, ductwork, and the local labor costs. For larger homes the cost can average to $50,000 for installing a high end ground source heat pumps.

However, you can realize a ROI “Return on Investment” for the additional installation costs in approximately five to ten years. Combine that with a life expectancy of 25 years for a geothermal heat pump’s interior components and 50 plus years for its exterior components and your savings can really add up in a hurry. You will need to find a qualified local geothermal heat pump installer who has worked with this particular HVAC system before.

An open lot with the foundations of a geothermal heat pump.

Types of Geothermal Heat Pumps

Geothermal heat pumps are characterized into four groups. Three of the four named systems are of the close looped variety with the fourth being referred to as an open loop system. Several considerations must be made before choosing the right system for your home. Soil conditions, land space, climate and installation costs all come into play when choosing a geothermal heat pump system. These basic types of systems are suitable for both commercial and residential applications. Each of these ground source heat pumps vary in total HVAC installation costs.

Closed vs. Open Loop Geothermal Heating Systems

The difference between a closed and open-looped system is in the terminology, one utilizes a sealed loop of pipe while the other uses a closed loop of pipe. A closed-loop geothermal system uses a length of plastic tubing or pipe that is buried in the ground or submerged in a nearby lake or pond. An anti-freeze solution circulates through the tubing. A heat exchanger then transfers heat between the solution in the tubing and the refrigerant in the systems heat pump. The most common installation practices of a closed-looped system are as follows:

Horizontal Geothermal Heat Pump Installation

This is a cost-effective method used in both new construction and sites with plenty of available land. Trenches are dug to a depth of at least 4 feet to house the tubing but can vary due to terrain and soil conditions. When space is limited for trench installation, a coiled version of pipe, referred to as a slinky is used that allows a shorter trench to house more tubing.

Vertical  Ground Source Heat Pump Installations

There are practical where land space may be limited such as commercial building sites and schools. This method of installation involves boring 4-inch diameter holes into the ground at approximately one hundred to four hundred feet in depth to house the loop of tubing or pipe. Each hole houses two sections of pipe that are joined together at the bottom by a special fitting called a U-bend to complete the loop. A horizontal trench is dug to house the run of tubing between the vertical holes and the heat pump.

Sites with access to a lake or pond offer a cost-effective installation method. The pipes are run underground to the water source where they are looped at least 8 feet under the water’s surface.

Open-looped Geo Heat Pump Systems

These require a body of open water or a groundwater source to provide the solution in the tubing needed for the heat exchange with the heat pump compressor. As you may have figured, the open-looped system is only a viable option when an abundant water source is available.

Hybrid Geothermal Heat Pump Systems

The beauty of geothermal heat pump systems is that they can be adapted to combine with the best of traditional technologies to provide efficient heating and cooling systems in varying climates. These hybrid systems offer greater flexibility in extreme climates where weather conditions can vary significantly or in areas where a stand-alone geothermal heat pump is not practical.

When hiring professionals to install a geothermal heat pump, be sure to talk about factors  like size of your home, location, available land close to your home for installation, soil type, local climate, existing ductwork condition, type of geothermal pump you need and the timeline for execution of the project. All these factors are crucial to determine the cost to install the system.