Growth in the geothermal heating and cooling market averages 12% annually, as demand continues to rise for highly efficient HVAC systems that leverage sustainable energy.
Today, Geo system pricing is more competitive than it was a decade ago because there are many more manufacturers selling ground-source heating and cooling systems and there are more experienced installers competing for projects.
The current national average cost ranges between $20,000 and $24,000 for the installation of a new mid-range Geo heat system. This is before the 26% federal tax credits for the geothermal home energy efficiency upgrades that were recently extended by congress through the end of 2022. The federal tax credit rebate amount will be reduced to 22% in 2023.
On a wider pricing range: Most homeowners can expect to pay between $18,000 and $30,000 for a complete mid-range geothermal heating and cooling system fully installed, before the 26% federal tax credits. This wider range captures 80% of all residential Geo installations.
High-end ground-source heat pump systems for larger homes can cost as much as $30,000 to $45,000.
The size of your home and its location, available land, the type of soil, local climate, condition and usability of current duct work, and the type of heat pump you choose will impact the overall cost.
Let’s itemize the cost of a geothermal heat pump system in the following table:
|Equipment||Equipment Cost||Total Cost with
|Total Cost with
|Packaged Water to Air Heat Pump*||$3,300 to $7,500||$12,000 to $20,000||$15,750 to $24,000|
|Split Water to Air Heat Pump||$3,850 to $7,500||$14,250 to $23,000||$17,500 to $27,000|
|Packaged Water to Water System**||$4,000 to $8,000||$16,250 to $25,000||$19,500 to $30,000|
* Water to air systems are forced air systems. In winter, heat is collected with water circulating through the pipes in the ground and transferred to air being forced by a blower fan through your home’s ductwork.
The opposite occurs in summer. Heat is collected from the air in your home, transferred to the water in the pipes, which are then cooled by stable ground temperatures.
** Water-to-water systems are hydronic systems. Heat is transferred between the water in the loop system and water in an indoor radiant heat floor system or baseboard heat system.