How much does a geothermal heat pump cost?
How much does a geothermal heat pump cost?
$20,000 – $50,000+ average system cost installed (before incentives)
Average geothermal heat pump cost
A geothermal heat pump costs $20,000 to $50,000+ installed on average. Entry-level systems for small homes with simple layouts may cost less, while complex projects for larger homes, premium brands, or challenging drilling conditions sometimes exceed $75,000. The total cost to install geothermal HVAC depends on the system type, site conditions, project scope, and available incentives.
Geothermal heat pump cost by home size
Home size | Average cost installed |
|---|---|
1,200 – 1,500 | $15,000 – $23,000+ |
1,500 – 2,000 | $18,000 – $28,000+ |
2,000 – 2,500 | $20,000 – $36,000+ |
2,500 – 3,500 | $30,000 – $50,000+ |
3,500+ | $40,000 – $75,000+ |
Ground source heat pump cost by capacity
Geothermal unit prices range from $3,500 to $14,000 before installation, depending on the size, brand, and model. Heat pump capacity is measured in tons, with each ton equal to about 12,000 British thermal units (BTUs). Larger homes require more heating and cooling capacity, directly increasing costs.
The following table shows the average cost of geothermal heat pumps by capacity.
Cost of geothermal heat pump by capacity
Heat pump size (tons) | Average unit price | Average cost installed |
|---|---|---|
2 | $3,500 – $7,000 | $15,000 – $20,000+ |
3 | $5,000 – $8,000 | $18,500 – $28,000+ |
4 | $6,500 – $10,000 | $20,000 – $36,000+ |
5 | $7,500 – $12,000 | $30,000 – $50,000+ |
6 | $9,000 – $14,000 | $38,000 – $75,000+ |
Geothermal installation cost calculator
When calculating the total cost to install geothermal HVAC, several factors can impact your project expense:
Location: Your location affects both equipment costs and installation complexity. Colder climates need deeper installations with higher excavation and drilling fees to ensure loops remain below the frost line.
Soil conditions: Installation costs tend to be lower in areas with sandy or loamy soil, while regions with challenging rocky or hard soil may require specialized drilling equipment or techniques, leading to higher costs.
Incentives: A federal tax credit of 30% for geothermal heat pumps is available through 2032. Additionally, many states and utility companies offer rebates of $500 to $2,000 or more, significantly reducing the total installation cost.
Brand and model: Name-brand units cost more but often come with better warranties.
Sizing & design service: Initial sizing and design fees often add $500 to $1,000+, but proper calculations are essential to ensure optimal efficiency.
System type
The cost to install a ground source heat pump also depends on the type of ground loop system. Your property size, soil conditions, and local regulations determine which system works best for your situation. The following table shows the average cost for each configuration.
The following table shows installation costs by system type.
Geothermal heat pump installation cost by system type
System type | Average cost installed |
|---|---|
Horizontal loops | $20,000 – $50,000+ |
Vertical loops | $25,000 – $80,000+ |
Pond loops | $25,000 – $45,000+ |
Open loops | $15,000 – $35,000+ |
Horizontal loop systems require at least 0.25 acres of land and are installed in trenches approximately six feet underground. These systems cost less because they avoid expensive deep drilling, but they require more available space.
Vertical systems require drilling boreholes 100 to 400 feet deep, spaced 10 to 20 feet apart. Most homes need three to five boreholes, making this option more expensive but suitable for smaller properties.
Pond loop systems place coiled pipes in nearby lakes or ponds at least 8 feet deep, offering efficient heat transfer but requiring suitable water bodies within a reasonable distance of the home.
Open-loop systems can be the cheapest option but require permits for groundwater discharge that may add thousands annually to the cost in some areas.
Labor & installation complexity
Labor makes up 50% to 70% of geothermal heat pump installation costs. The specialized skills required for system design, excavation, and proper installation translate to higher labor costs compared to standard HVAC work. New construction installations often cost 20% to 40% less than retrofitting existing homes.
Additional costs
Several other factors can impact your total geothermal heat pump installation cost:
Ductwork: Ductwork modification costs can add $1,400 to $5,600+, depending on your existing system's condition and layout.
Insulation: New insulation costs $1.50 to $4.50 per square foot, depending on the type, and may improve the efficiency of a new heating and cooling system.
Permits and inspections: Permit fees range anywhere from $50 to $2,000, depending on the location and project scope. Open-loop systems may incur additional permitting costs.
Landscaping restoration: Landscaping costs $50 to $100+ per hour for repairs, moving sprinkler systems, and re-seeding lawns after the installation is complete.
Electrical upgrades: Older homes may need electrical system upgrades to accommodate the new geothermal equipment, adding to total project costs.
A home energy audit costs $200 to $600 and can help identify the specific updates or modifications that will have the most impact on your home's efficiency.
Geothermal heating cost per month
Monthly geothermal heating costs range from $50 to $200 per month on average, varying based on climate, home size and condition, and local electricity rates. Heating and cooling a well-insulated, 2,000-square-foot home with a properly sized geothermal system averages $50 to $80 per month, while climate control in larger homes or those with poor insulation may cost closer to $100 to $150+ per month.
Check out our in-depth guide on the cheapest way to heat a home.
Geothermal heat pump FAQs
What is a geothermal heat pump, and how does it work?
A geothermal heat pump, also called a ground source heat pump, uses the earth's consistent underground temperatures for heating and cooling. The system circulates fluid through underground pipes to extract heat during winter and reject heat during summer. This process provides efficient year-round climate control.
How long do geothermal heat pumps last?
A well-maintained geothermal heat pump unit lasts 20 to 25 years, while the underground loops can last 40 to 60 years. In comparison, a standard heat pump lasts 10 to 15 years on average.
How long does geothermal heat pump installation take?
Geothermal projects take anywhere from 1 to 8 months from contract signing to completion. Complex retrofits with multiple zones, extensive ductwork modifications, or challenging site conditions may take longer. Weather conditions, permitting delays, and equipment availability can extend timelines, particularly during peak construction seasons.
Is geothermal worth it?
The combination of energy savings, longevity, and tax incentives makes geothermal worthwhile for many homeowners planning to stay in their home 10 years or more. Modern geothermal heat pumps provide heating and cooling 25% to 75% cheaper than other HVAC options. Most systems pay for themselves within 8 to 15 years, depending on local utility rates and climate.
Getting estimates for geothermal installation
Geothermal installation involves specialized skills and a significant investment. Use these guidelines to find a qualified geothermal installation contractor near you:
Get at least three detailed quotes from certified geothermal installers.
Verify their licensing, certifications, insurance, and geothermal-specific experience.
Request references from recent geothermal installations in your area.
Check out reviews from previous customers on HomeGuide and Google.
Ensure quotes include all components, including equipment, installation, permits, and cleanup.
Ask about financing options and available rebates or incentives.
Schedule comprehensive site evaluations before accepting any estimates.
Compare warranty terms for both equipment and installation work.
Questions to ask geothermal contractors
To identify qualified professionals and avoid potential issues, ask detailed questions about their experience, process, and pricing. Important questions include:
Are you IGSHPA certified, and how many installs have you completed?
What type of loop system do you recommend for my property and why?
Will you handle all permits and inspections required for installation?
How do you determine proper system sizing for my home's needs?
What warranties do you provide on equipment and installation work?
Can you provide references from recent local geothermal installations?
How will you manage excavation debris and landscape restoration?
Are there any additional costs not included in your written estimate?
What backup heating options do you recommend for my climate?
How long will the complete installation process take?
Do you offer financing or assistance with rebate applications?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.