An Unsung Hero: The Underutilized Approach to Heating and Cooling Your Home

Not as widely recognized in the U.S. is an innovative means to heat and cool residences.

“During summer, we enjoy the liberty to set any temperature we want,” often ranging between 69 to 70 F, remarked Joe Maioli from Ontario, New York. In 2021, he and his spouse installed a ground source heat pump, often termed as geothermal heat pump.

In contrast to the more common air-source heat pumps that resemble box fans and extract energy from the surrounding air to heat or cool the indoor environment, geothermal heat pumps leverage the stable underground temperatures.

Efforts are intensifying to promote ground-source heat pumps due to their impressive energy efficiency. “On average, ground-source heat pumps utilize 30 percent less electricity compared to air-source counterparts throughout the heating season,” Michael Waite, a senior manager at the American Council for an Energy-Efficient Economy, highlighted.

“Air conditioning for a month amounts to around $10 in electricity bills, making it the most cost-effective method,” Maioli expressed. Their highest heating bill during peak winter reached about $70.

Installing ground-source systems requires deep drilling in your yard to place a loop of flexible pipes several hundred feet underground. This loop circulates water, which exploits the stable 55 F underground temperature.

On the inside, usually in the basement, a unit contains refrigerant — a fluid that readily absorbs significant heat. The loop water discards heat into the ground during summers and extracts it from the earth in winters, effectively transferring it indoors.

Tim Litton, Director of Marketing Communications at WaterFurnace, a geothermal manufacturer in Fort Wayne, Indiana, optimistically shared, “We’re strongly aligned with a growing megatrend.”

In comparison to air-source heat pumps, which can frost over in winter and require indoor heat to defrost, geothermal systems do not suffer from exposure to dirt, animals, and debris. However, installation might be tricky in tightly packed residential areas.

Presently, the demand for geothermal technology is booming, primarily due to a growing interest in reducing carbon emissions, according to Mark Schultz, president of Earth River Geothermal in Maryland. “The majority of our potential clients already have electric vehicles and solar panels installed,” Schultz noted.

Litton sees diverse buyers across the political spectrum for their product in the Midwest. “It’s quite heartening in these divisive times to have a subject of agreement,” he stated.

The upfront costs for ground-source systems are higher than traditional ones. However, with a 30% tax credit under last year’s Inflation Reduction Act, a customer buying a $30,000 system would pay just $21,000. Unused credits can be carried over to subsequent years, and there is no cap on the credit amount.

Several states provide additional credits, with South Carolina residents eligible for another 25% discount, reducing the initial cost by 55%. Some utility companies also offer incentives.

The most significant savings are seen by residents in regions with extreme seasonal temperature fluctuations. However, initial investment remains a challenge for many potential buyers.

After comparing the costs with a natural gas system, Long Island resident Corey Roberts installed a geothermal system by Dandelion Energy last July. The savings from tax credits and rebates balanced out the initially daunting $63,500 cost, making it only slightly more expensive than the $27,000 natural gas option.

Roberts’ new system has sparked curiosity among friends and neighbors. “People often ask us how it operates and we liken it to magic,” he said.

Founded in 2017, Dandelion Energy operates in New York, Connecticut, and Massachusetts and aims to provide a cost-effective solution to home temperature control without exacerbating climate change.

The company is currently exploring a partnership with Lennar Corp, one of the largest home builders in the country. It believes that new homes will be built with geothermal instead of natural gas in the future.

Despite their potential, residential geothermal heat pumps currently make up just 1% of the U.S. heating and cooling market. However, they’re 20% of the European market, owing to longer-standing high fossil fuel prices and greater incentives.

The challenges facing geothermal include not just costs and yard disruption but also permitting delays, primarily due to unfamiliarity with the technology. As Litton points out, another hurdle is invisibility, as these systems are entirely underground.

Support for Big Big News’ climate and environmental coverage is provided by several private foundations. More information about AP’s climate initiative can be found here. AP is entirely accountable for all content.

Frequently Asked Questions (FAQs) about Geothermal Heat Pumps

More about Geothermal Heat Pumps

• How Geothermal Heat Pumps Work
• Energy Efficiency of Geothermal Heat Pumps
• Inflation Reduction Act
• Introduction to Geothermal Energy
• Understanding Geothermal Tax Credits
• The European Geothermal Heat Pump Market