How Much is a Geothermal Heat Pump System?

You might think about the price if you’ve been thinking about installing a geothermal heat pump system in your house. This website explains the problem.

Geothermal heat pumps use heat transfer from or to the ground to warm or cool a house. A geothermal heat pump can provide energy-efficient heating or cooling no matter the weather, keeping a home comfortable without the hassle of skyrocketing energy costs. Installing a geothermal heat pump typically costs $12,708. The typical range is $2,199 to $21,480, with the final cost dependent on system type and house size.

With the aid of this guide, homeowners will be better able to comprehend the costs associated with geothermal heat pumps, the advantages of using one, and the ways in which they can cut installation and ongoing expenses. You can check out more information we have on How to Install a Heat Pump System?

How Much is a Geothermal Heat Pump System?

Depending on your home’s needs, you can expect the following costs for your geothermal pump project.

• Pump and installation: $2,500–$5,000 per ton
• Upgrading your ductwork: $5,000–$20,000
• Resodding your yard: $450–$4,520

For most homes, installing a 4-ton geothermal HVAC system costs around $24,500, though some extremely large and complicated systems can cost more. Numerous geothermal HVAC projects are cheaper thanks to tax credits and local rebates.

The contractor will provide the heat pump and evaporator coil, minor ductwork modifications, installation materials like the loop pipe, all installation labor, and local permits for this price.

• Average Do It Yourself Cost: $6,500 – $13,500 (HVAC equipment and supplies)
• Average Contractor Installed Cost: $24,500
• Typical Cost Range: $14,350 to $35,900, Installed

How Does the Cost of a Geothermal System Compare?

There is no denying that installing a geothermal heat pump, also known as a ground source heat pump or a geothermal HVAC system, is expensive upfront. It’s 30 to 40% more expensive than installing traditional heating and cooling systems, but before you say no, let’s look at a few facts.

• In comparison to conventional systems, geothermal systems can last twice as long.
• Energy use is reduced, so you can expect lower energy bills that could offset installation prices in 5 to 10 years.
• Geothermal is “clean” energy, which reduces your carbon footprint.

In conclusion, your home maintains a constant temperature throughout the year, you pay less for energy, and you’re less harmful to the environment. There’s still more, though!

Read More:

• How Do Heat Pump Systems Work? Working Principle
• Hybrid Heat Pump System: Are They Right for Your Home?
• Is a Heat Pump System Worth It? Pros and Cons
• Why Do Heat Pumps Have Defrost Systems? How Does It Work?

Geothermal Heat Pump Cost Factors

The price of this type of heat pump system has been estimated to range from $14,350 to $35,900, with $24,500 serving as the average price. The approximate $3,500 to $14,500 range provided by Home Advisor is only for the equipment; installation, which accounts for the majority of the cost, is not included.

The equipment and installation costs that affect the price of geothermal heat pumps are listed below. Read More: How Much Does a Heat Pump System Cost?

• System Size – The size of the system you’ll need depends on the size of the house, the amount of insulation, and the state of the windows and doors. Regardless of the type of HVAC equipment you select, from geothermal to a gas furnace and split system AC, size impacts cost. All other things being equal, the cost will increase as the heating and cooling capacity increases. Most manufacturers offer residential systems in the 2.0 to the 6.0-ton range. A geothermal heat pump, according to Home Guide, costs $2,500 to $5,000 per ton, but installing one is difficult. The installation and setup of the geothermal heat pump are subject to a number of fixed costs that are only slightly affected by the size, including excavation or well drilling.
• Hot Water Too – This is primarily a result of system size, but it is something to take into account. You will need a larger size with a higher price tag if you want your geothermal equipment to heat the water in your hot water tank.
• System Performance – Similar to split system air-source heat pumps, geothermal models are available in three performance tiers: single-stage, two-stage, and variable capacity compressors. While compressor performance increases indoor comfort control and efficiency, so do costs.
• Horizontal vs Vertical Loop Systems – This has a significant impact on how much it costs to install a geothermal heat pump system. However, because drilling vertical wells are more expensive, horizontal loop systems have much lower excavation costs than vertical loop systems.
• Ductwork Changes – Existing ductwork is probably still serviceable if you’re replacing an air-source heat pump or even a gas furnace. However, if it is the wrong size or in poor condition, expect to pay $175 to $400 per duct run for duct replacement in addition to the costs listed for a geothermal HVAC system.
• Ground Conditions – Installation costs are higher and may even be unaffordable where the ground is rocky, particularly when drilling through bedrock.
• Tax Credits – For eligible geothermal heat pump systems, the US tax credit is 22%. Not a deduction, but a tax credit. So, for example, if you spend $20,000 on a system, you’ll get a $4,400 tax break. You will receive money back if your tax obligation is lower. The credit will expire at the end of 2021, and a renewal is not a given.
• Rebates – Most local utility companies, as well as most states and cities, offer rebates for energy-efficient HVAC equipment, including geothermal. Ask your contractor about rebates, or use the Database of State Incentives for Renewables & Efficiency to search for local rebates.
• Permits – You will require a mechanical permit, possibly an electrical permit, and a DNR/DEQ permit of some kind. Costs for permits are listed below.
• Environmental Impact Study – An impact study, which can cost between $700 and $1500, may be necessary if you’re thinking about installing a geothermal system that uses a lake or pond as the sink.

How to Save Money on Geothermal Heat Pump Costs?

The price of installing geothermal heat pumps is high. Fortunately, there are several ways for a homeowner to reduce expenses.

• First, make an insulation investment. To meet the need for heating in larger homes, larger geothermal systems are needed. A house with better insulation might be able to get away with a smaller pump, lowering the cost of installation.
• Get multiple geothermal heat cost estimates. Prices can vary widely because installing a geothermal heating system is not a common contractor task. You can make sure the final price is not only the least expensive but also the most reasonable for the job by getting multiple quotes (at least three are advised).
• Ask about rebates. On the purchase and installation of your heat pump, you might be eligible for a rebate. This can be in the form of a cash rebate from a manufacturer or a tax rebate when filing state or federal taxes. The costs of installing a geothermal pump may also be covered in some regions by programs or grants.
• Make maintenance a top priority. Regular maintenance can prevent expensive repairs, increase the expected lifespan of a geothermal system, and delay the need for a replacement geothermal heat pump, all of which can help lower the initial cost of a geothermal heat pump.
• Think about whether features are necessary. While all available features of a geothermal system can add to comfort (like multiple zones for better temperature control), they also add to the cost. With the help of your contractor, weigh the benefits and drawbacks of each option to determine which ones are worthwhile investments and which ones will increase installation costs with little added value.

DIY Or Hire a Pro?

Excavation contractors and HVAC specialists are on the short list of people who can DIY. Even then, it would probably be necessary to contract out some of the work.

To put it simply, most of us can’t do this ourselves. Additionally, most homeowners want the assurance that the work will be covered by a warranty for at least a certain amount of time, typically between 10 and 15 years, in the event that something goes wrong with the underground loop system. For example, it is expensive to have to dig up a loop system to find a line break.

Conclusion: the Cost of a Geothermal Heat Pump System

A ground source heat pump costs about $2,500 per ton. Most homes will require systems that can handle 3 to 5 tons. A very efficient way to use less fuel and less fossil fuel is to use heat pumps.

Reducing heating costs by as much as 50% and cooling costs by as much as 35% compared with a conventional furnace and AC is the top reason for choosing geothermal. We have listed a few factors above that you should take into account when determining if the timing is appropriate for you.

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