What to Know About Switching to Geothermal Heat

On February 16, 2025 By newsroom Topic: Home Services

Geothermal heating offers energy-efficient and sustainable climate control, but it’s a big investment. Here's what to consider before making the switch.

1. What Is a Geothermal Heat Pump?

How it works:
Uses pipes buried 200–500 feet underground to draw consistent 55°F heat.
Provides both heating and cooling through a unit inside your home.
Efficiency:
3–4x more efficient than high-efficiency air-source units.
Operates without fuel.

2. Cost of Geothermal Systems

Installation cost:
Typically $20,000–$25,000, 30–40% more upfront than traditional systems.
Tax credits:
26% federal tax credit (valid through 2022, drops to 22% in 2023).
Significantly reduces the effective cost.

3. Geothermal vs. Natural Gas

Upfront Price

Geothermal: $20,000–$25,000.
Natural Gas Furnace: $2,600–$6,400.

Lifespan

Geothermal: 20–25 years for units, 50+ years for ground loops.
Natural Gas Furnace: 15–20 years.

Energy Savings

Geothermal reduces energy consumption by 25–50% compared to traditional systems.
Units are 300–600% more efficient than air-source heat pumps.

4. Key Factors to Consider

Location

Best for colder regions (e.g., Minnesota).
Less cost-effective in warm climates (e.g., Florida).
Installation may not be feasible in urban or high-demand areas.

Sustainability

No fuel consumption or fracking involved.
Long-term renewable energy option.

Energy Independence

Homes do not need to connect to geothermal power plants.
Local installations rely on consistent underground temperatures.

5. Installation Process

Manual J Load Calculation: Ensures proper sizing of the system for your home’s energy needs.
Excavation:
Significant digging required for ground loops.
Advances in technology minimize yard damage.
Professional Installation:
Work with certified installers familiar with federal and local codes.

6. Benefits

Lower energy bills over time.
Long-term savings and tax incentives.
Environmentally friendly and sustainable.

7. Challenges

High upfront cost may not suit all budgets.
Requires sufficient yard space for ground loop excavation.
Not ideal in areas with mild heating or cooling needs.

Final Thoughts

Switching to geothermal heat is a worthwhile investment for homeowners in the right locations who can afford the upfront cost. With proper planning and installation, geothermal systems offer a sustainable, long-term solution for heating and cooling your home.