Economics of Geothermal Heat Pumps

Photo of a house that uses GHP. Energy costs about $1 per day for this 1500-square-foot house that is heated and cooled with a GHP. On average, a geothermal heat pump (GHP) system costs about $2,500 to $3,500 per ton of capacity. A system using horizontal ground loops will generally cost less that a system with vertical loops.

Although initially more expensive to install than conventional systems, properly sized and installed GHPs deliver more energy per unit consumed than conventional systems.

And since geothermal heat pumps are generally more efficient, they are less expensive to operate and maintain — typical annual energy savings range from 30% to 60%. Depending on factors such as climate, soil conditions, the system features you choose, and available financing and incentives, you may even recoup your initial investment in two to ten years through lower utility bills.