Geothermal heat pumps cost $15,203 on average, and depending on unit size, system configuration, site accessibility, and more, you may pay anywhere from $4,541 to $26,610.
A geothermal heat pump, also known as a ground-source heat pump, uses the cold or heat underground, pumping it into your home for cooling in the summer months or heating in winter. Consult an AC or HVAC installer to discuss your options for adding geothermal heating to your home.
The cost of a geothermal heat pump can vary drastically, from $4,541 to $26,610, depending on home size, whether you want a closed-loop or an open-loop system, the necessary capacity, the brand, and your geographic location. Consult a local geothermal installer to determine an estimate for adding this type of system to your home.
A geothermal heat pump’s capacity is measured in tons, with each ton equal to about 12,000 British thermal units (BTUs), a measurement of heat. You’ll spend about $2,500 to $8,000 per ton for the geothermal heat pump’s capacity.
| Capacity | Cost |
|---|---|
| 1 ton | $2,500–$8,000 |
| 2 tons | $5,000–$16,000 |
| 3 tons | $7,500–$24,000 |
| 4 tons | $10,000–$32,000 |
| 5 tons | $12,500–$40,000 |
The size of your home can dictate what capacity you’ll need out of your geothermal heat pump. An average home between 2,000 and 2,500 square feet will need a system with a 3- to 4-ton capacity, which will cost $7,500 to $32,000.
| Home Size in Square Feet | Tons | Cost |
|---|---|---|
| 1,000 | 1.5 | $3,750–$12,000 |
| 1,500 | 2 | $5,000–$16,000 |
| 2,000 | 3 | $7,500–$24,000 |
| 2,500 | 4 | $10,000–$32,000 |
| 3,000 | 5 | $12,500–$40,000 |
Geothermal heat pumps come in closed-loop or open-loop systems. Closed-loop systems are filled once with a solution, such as water and antifreeze, that will continuously circulate through the lines to move heat through the system. Closed-loop systems may include a horizontal loop, vertical loop, or a pond loop if you have a body of water on your property.
An open-loop geothermal heat pump uses well water or water from a body of water on the property to transfer heat. Then, the water goes through a discharge pipe. Open-loop systems are less common and may be restricted by local laws, especially if you live somewhere facing water supply shortages.
| Type | Closed or Open-Loop? | Description | Average Cost |
|---|---|---|---|
| Horizontal loop | Closed-loop | Best for rural properties, more affordable | $15,000–$34,000 |
| Vertical loop | Closed-loop | Works for rural and urban homes, ideal if yard space is limited, but more expensive | $20,000–$38,000 |
| Pond loop | Closed-loop | Can be less expensive, but needs to be near a body of water in order to function | $10,000–$32,000 |
| Open-loop | Open-loop | Can be less expensive, but needs to be near a freshwater supply | $10,000–$28,000 |
Brand and efficiency will affect the cost of choosing a geothermal heat pump. You can expect a geothermal heat pump’s efficiency to range from 15 EER (Energy Efficient Ratio) to 45 EER and more for the cooling system. The higher the EER, the better the system performance.
When choosing a brand, you might also want to look into special features, such as Wi-Fi, remote monitoring, and domestic hot water production. These high-end features can drive up the price of your system.
Your location and the size of your home will also make a difference in the total price of a geothermal heat pump. Several location factors will affect your pricing:
Land size: If you have a large yard where you can easily install a horizontal loop system, your overall cost will be less than a yard requiring many land modifications.
Home size: If you have a larger home, you’ll need a larger, more costly geothermal heat pump system to heat and cool your house properly.
Local climate: If your local climate has extremely hot or cold temperatures, you’ll recoup your investment costs more quickly than in mild climates.
Your geothermal heat pump installation costs will depend heavily on labor costs, the extent of land excavation and other prep work is needed, ductwork, and permit fees. Here’s what you can expect to pay in installation costs:
You’ll pay at least 50% to 70% of your total project in labor costs. The geothermal heat pump installer must be highly specialized and have technical knowledge when building a geothermal heat pump system. Not only that, but a specialized pro will also need to likely contract out ductwork and yard work in addition to calculating your home’s thermodynamic needs.
You can expect to pay $1,400 to $5,600 for ductwork installation. Geothermal heat pump systems travel through ductwork and vents in every room—so your total cost will depend on how much you need to modify your current ductwork, whether you’re installing new ductwork or whether your home is a new build. Newly built homes with open walls, ceilings, and floors will make ductwork installation much more accessible, costing less than retrofitting an older home.
Your total yard work cost will depend on several factors, including excavation, soil conditions, drilling, and ground accessibility. Most homeowners will pay between $5,000 and $15,000 for yard work. But, if your yard is small, has challenging terrain, or digging and trenching is in a hard-to-reach area, you can expect to pay more.
Excavation: $1,550–$6,300
Soil testing: $600–$2,000
Regrading: $1,000–$3,300
Trenching: $5–$12 per linear foot
Piping: $2.50–$15 per linear foot
You’ll need to apply for permits before you can install a geothermal heat pump, although typically the heat pump company you hire will handle this for you. Permits cost anywhere from $20 to $2,000 for outdoor projects, although most permits for heat pumps will cost about $100 to $650.
Luckily for people who install a geothermal heat pump, these systems run efficiently and require little maintenance. This benefit can save time and money year-round compared to the upkeep and energy costs of a traditional HVAC system.
Running a geothermal heat pump costs about $100 to $200 per month, but you’ll be able to enjoy the savings of a heat pump compared to running a traditional HVAC system. According to the U.S. Department of Energy, a geothermal heat pump can save you up to 65% on your heating and cooling costs.
To keep your geothermal heat pump running as smoothly as possible, have a geothermal contractor inspect the system about once per year. A heat pump inspection costs about $100 to $250.
Repairs are typically few and far between for a geothermal heat pump, especially if you’re keeping up with annual inspections. If your system does need repairs or replacement, here’s what you can expect to spend:
Fan replacement: $50
Compressor replacement: $1,700
Loop leaks: $75–$200
Acid flush: $150–$200
Ductwork repair: $30–$50 per linear foot
Reversing valve replacement: $450–$600
Thermostat replacement: $100–$250
Motor replacement: $100–$500
Labor makes up about 70% of the cost of geothermal heat pump installation. That’s because installing a geothermal heat pump requires expert skills, heavy machinery, and specialized equipment to design the system, excavate the ground, and install the heat pump correctly.
This is not a project you can DIY. Fortunately, by hiring a local geothermal installer, you can rest comfortably (in your properly heated or cooled home) knowing the system was installed correctly and is running as efficiently as possible.
If you’re planning to install a geothermal heat pump, you should inspect the entire house to find ways to upgrade efficiency, which can save you money in the long run. For instance, you can schedule an energy audit to determine how to make your home more efficient, such as installing low-E windows or adding rooftop solar panels.
Insulation costs: $1,070–$2,585
Energy-efficient windows cost: $325–$2,000 per window
Cleaning air ducts cost: $150–$780
Energy audit cost: $100–$2,250
Rooftop solar cost: $4,500–$53,000
The cost of geothermal heat pump installation may seem high upfront, but this home improvement project is well worth the investment. Since adding a geothermal heat pump is an eco-friendly upgrade, heat pumps often qualify for tax incentives, rebates, and other financial benefits that will greatly reduce the cost of installation.
Check for rebates: One major benefit of a geothermal heat pump is that it qualifies for tax incentives and rebates. Federally, installations prior to 2033 qualify for a 30% rebate, according to ENERGY STAR®.
Prep the landscape: The more difficult it is to access the installation area, the higher the installation cost. Clear the area of furniture, swing sets, debris, and other items to make it easier for the contractors to access your property.
Conduct an energy audit: Before installation, get an energy audit. By improving insulation or installing more efficient windows, your geothermal heat pump will work even more efficiently, saving you more money on monthly utilities.
Choose the right system: If you have the space, you could save thousands by installing a horizontal system instead of a vertical system.
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Yes, geothermal heat pumps are worth the money. You can save about 70% on heating costs in the winter and around 50% on cooling costs in the summer with a geothermal heat pump compared to a traditional HVAC system. Over time, your savings on monthly utilities will pay for the cost of the geothermal heat pump installation.
A geothermal heat pump system will take about 10 years to pay for itself, and it has a life span of anywhere from about 25 to 50 years. Installing a geothermal heat pump will cost about $14,250 upfront, but it can reduce your energy bills by around 65% when compared to a conventional HVAC system.
