How Much Does a Geothermal Heat Pump Cost? [2025 Data]

Geothermal Heat Pump Cost Factors

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.

Capacity

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.

Home Size

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.

Type

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.

System Efficiency 

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. 

Location

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.

Geothermal Heat Pump Installation Costs

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: 

Average Overall Labor 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. 

Ductwork

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. 

Yard Work

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

Permits

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.

Geothermal Heat Pump Ongoing Costs

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.

Operating Costs

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.

Maintenance

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

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

DIY Geothermal Heat Pump Installation vs. Hiring a Pro

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.

Cost of Common Geothermal Heat Pump Add-Ons

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

Tips to Reduce Geothermal Heat Pump Costs

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.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed over 30,000 real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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