What You Should Know About Geothermal Heating and Cooling

By Missy Nolan

July 05, 2025

Unless you enjoy being uncomfortable, sitting in a stuffy or frigid home probably isn't on your to-do list. Many homeowners rely on geothermal HVAC systems for pleasant, predictable temperatures inside. Geothermal heating and cooling systems are reliable and cost-effective, making them popular with fans of renewable energy.

This May Also Interest You: How Much Does It Cost to Install a Geothermal Heat Pump?

Wondering if you could benefit from an open-loop or closed-loop geothermal system for your home? Get the facts about geothermal system efficiency and benefits below.

What Is a Geothermal Energy System?

Geothermal energy refers to the natural heat stored below the ground's shallow surface. This renewable energy source remains consistent year-round, even if you're battling a blizzard or scorching heat above ground.

Generally, you can expect temperatures to stay between 40 and 70 degrees Fahrenheit (4 and 21 degrees Celsius) in the area that houses geothermal heat pumps. These consistent underground temperatures are what make renewable energy for geothermal HVAC systems possible. You can use geothermal HVAC energy to heat or cool your home.

How Does Geothermal Energy Work to Heat and Cool a Home?

Ground-source heat pumps are the core of geothermal HVAC systems. These heat pumps work with ground loop systems to make your home or business comfortable. Ground loop systems are pipes hidden below the ground. Depending on the season, they help circulate water and other fluids below the ground. On cold days, ground loops carry warm air from the earth into your home. On hot days, ground loops pull warm air out of your house, then release it back into the earth's core.

Types of Geothermal Heating and Cooling Systems

Ground loops can be part of an open-loop geothermal system or a closed-loop geothermal system. You can also choose between vertical and horizontal systems.

Open-Loop Geothermal Systems

Open-loop geothermal systems work with an existing well or other water source. They can be more efficient than closed-loop geothermal systems. However, local water ordinances may limit where you install your geothermal system and how you use it.

Closed-Loop Geothermal Systems

Closed-loop geothermal systems are one of the most popular options for residential properties and can be installed vertically or horizontally. Fluid flows below the ground in a closed loop. Heat then gets absorbed and released via a heat exchanger.

Horizontal Geothermal Loops

Horizontal geothermal loops work well if you have a large yard or plenty of land — you may need a few hundred feet of available land for the system. This system is often more affordable than vertical loops. Horizontal loops are spread across your land rather than down into it.

Vertical Geothermal Loops

Vertical geothermal loops usually cost more than horizontal loops, but they're ideal if you have limited space. These loops extend straight down into the ground. Expect your installation team to dig a deep hole hundreds of feet into the ground when inserting these U-shaped pipe loops.

More Related Articles:

How Environmentally Friendly Is Geothermal Energy?

If you're looking for an eco-friendly heating and cooling option, geothermal energy is one of your best bets. High-efficiency geothermal HVAC systems are significantly more efficient than gas or oil furnaces. You may use as much as 50% less electricity for geothermal heating and cooling.

A geothermal heat pump can produce 90% fewer emissions than a propane-fueled furnace. Simply put, you get the same comfortable temperature in your home with minimal pollution.

Is a Geothermal HVAC System Expensive?

Many commercial and residential owners are concerned about geothermal drilling costs. While installation can get costly, keep in mind that a geothermal HVAC system harnesses renewable energy. This means you'll likely enjoy decreased energy costs over time.

Here are some factors that can influence the cost of your geothermal heating and cooling system:
The type of geothermal HVAC system you choose
Installation complexity, including ground and soil conditions that impact digging
Access to existing water sources if using open loops

Local and federal tax incentives are often available. These incentives can help reduce your out-of-pocket expenses for geothermal energy.

What Other Applications Does Geothermal Energy Have for Homeowners?

Geothermal energy can heat your home's hot water supply. You can also use geothermal energy if you have a heated pool or hot tub.

Aside from warming up water, some homeowners use geothermal energy to heat their driveways. That way, they can skip shoveling snow and drive on a safer, drier surface. You can also heat your home with radiant floor heating powered by geothermal energy. An HVAC technician can review your options for geothermal energy solutions in detail.

Follow us