Geothermal Heating

Geothermal energy is a type of renewable thermal energy that that is generated from the Earth’s formation and radioactive decay and stored in the Earth.

Geothermal Heating

Geothermal heat pumps are part of an alternative heating and cooling system that pumps heat to and from the ground, relying on the earth's natural heat as an energy source. The earth is typically a reliable heat source because ground temperatures are much more stable than air temperatures, regardless of geographical location. The ground temperature under Phoenix, Arizona, for example, is not far off from the ground temperature under Minneapolis, Minnesota.

Geothermal heat pumps have been shown to provide homeowners and businesses with substantial savings in energy costs. However, the use of this technology has been limited primarily because of high upfront installation costs.

As a general rule, installing a geothermal heat pump will cost about $3,000 more per ton than an air-to-air heat pump. According to the National Association of Homebuilders Research Center, “Overall, one could expect to pay between $4,000 and $11,000 more for a 3-ton GHP system than for an air source heat pump system”. An article in Scientific American states that geothermal systems are often “$7500 or more”. To estimate how much a geothermal system will cost based on your location and current energy usage, you can use this calculator.

According to the Environmental Protection Agency, geothermal heat pumps can save homeowners 30 to 70 percent on heating and 20 to 50 percent on cooling costs over conventional systems. According to the NAHB, “reports by builders who monitor their in-place systems indicate heating and cooling savings between $358 and $1,475 annually”.

This shows that the payback period of your geothermal system will vary greatly depending on the initial cost and your heating and cooling savings. Your best option is to find a geothermal installer who will give you a cost estimate based on your available resource, current energy usage, incentives, etc. Additionally, if you are installing a geothermal system in your home, you should find an experienced geothermal installer or contractor to install it for you.