Whenever there is an energy improvement in the home, the first thing that we do is carry out an energy audit so that the energy efficiency of the home can be increased further. For example, improving upon the insulation of the home. We also try to find out the cost that will be involved upon carrying out that particular energy improvement in our home. Hence, when we plan to introduce geothermal heat pumps in our home, it is a good idea to have a brief idea about the expenses that will be involved in the whole process. The best thing about geothermal heat pumps is that they can be integrated with existing systems like traditional forced air or radiant floor heating and they can also be installed in new buildings.

The size of the geothermal heat pump and the size of the ground loop varies depending on the heating and cooling requirement of a house. Here it must be noted that installation of a geothermal heating is not a project that can be accomplished by an amateur and hence one would require the service of an expert. Thus, the cost of installation involves the labor charge as well as the type of loop system that is installed either the vertical one or the horizontal one. It has been seen that the cost to install a geothermal heat pump in an average home with moderate heating and cooling requirement is something between $20,000 and $25,000 which is almost twice the cost of conventional heating and cooling. However, the good thing of geothermal heat pumps is that they can reduce the utility bills by 40 to 60%.

Disclaimer: Although the above rates are typical average rates that can be seen across USA, they can vary in certain areas depending upon city and the variables associated with each individual project.

Now let us have a look at the factors that play an important role in determining the cost of installing a geothermal heat pump. They are the following:

Size of the Building: It is an obvious fact that bigger the building more will be the heating and cooling requirement and hence a bigger sized geothermal heat pump needs to be installed. With increase in size of the geothermal heat pump, the price will also increase.

Size of the Loop: If you need a bigger system, the loop that will go inside the ground will be longer and a geothermal heat pump contractor generally charges per foot for the loop. Thus, in case of bigger systems, the loop will be longer and the price will also be more.

Usability of Existing Duct work: In most cases if you have a duct work, it can be used for your geothermal heat pumps with little or no adjustments. But the problem is if your home does not have any duct work, then you have to bear the full expense of installing it.

It needs to be mentioned that initially the cost of geothermal heat pumps will be quite high but the payback against these systems is really good. If you happen to calculate the total savings that you make every year on your utility bills for a period of twenty years, you will realize investing in a geothermal heat pump has been worthwhile.