The Cost of Installing Geothermal Heating and Cooling in Your Home

Direct Exchange Geothermal heating and cooling systems are a great investment for homeowners who are looking to reduce their energy bills, increase their home’s energy efficiency, and reduce their carbon footprint. However, many homeowners are concerned about the cost of installing a geothermal system. In this blog, we will discuss the cost of installing geothermal heating and cooling in your home and what factors can affect the cost.

The cost of installing a geothermal system can vary depending on several factors, including the size of your home, the type of loop system, and the complexity of the installation.

However, it’s important to remember that the cost of a geothermal system is an investment in your home’s energy efficiency and can result in significant savings on your energy bills each month. Homeowners can save up to 70% on their heating and cooling bills by switching to a geothermal system.

How Do The Following Factors Affecting the Cost of Installing a Geothermal System

The following factors can affect the cost of installing a geothermal system:

  1. Size of your home: The larger your home, the more complex the geothermal system, which can increase the cost of installation. However, the payback for a small home can be just as fast as a larger home.
  2. Type of loop system: There are several types of loop systems available, including vertical or horizontal. The type of loop system you choose can affect the cost of installation.
  3. Complexity of installation: The complexity of installation can also affect the cost. If your home has limited access or requires significant modifications to accommodate the system, the cost may be higher. A comfort advisor can perform an on-site analysis of your home to provide you with more details.
  4. Location: The location of your home can also affect the cost. If you live in an area with a high cost of living, bad ground conditions, or where labor costs are higher, the cost of installation may be slightly higher.
  5. Rebates & Incentives: Most geothermal systems are eligible for a federal tax credit that is currently 30% of the total cost of a residential geothermal system. For commercial applications, the federal tax credit can be up to 50% of the cost of the system. For more info about federal tax credits, check out our article here. This means that if your geothermal system costs $40,000 – 80,000 to install, you can receive a tax credit of 30% to 50% of the price of the system. You can learn more rebates and incentives at Database of State Incentives for Renewables & Efficiency® – DSIRE (

While the cost of installing a geothermal system can be higher than traditional heating and cooling systems, it’s important to consider the long-term savings and benefits that come with a geothermal system. Geothermal systems are more energy-efficient and can result in significant savings on your energy bills over time. When considering installing a geothermal system, be sure to consult with one of our qualified contractors to determine the best system for your home and budget.