Geothermal heat pumps are very energy-efficient, but they can be costly to install, especially if you have a larger home or need to prep your yard before installation. Renovate partners with a network of reputable contractors who offer affordable and flexible financing terms that fit your budget and project scope.
Home improvement loan amounts and terms vary based on your creditworthiness and the companies that offer financing.
Geothermal heat pumps come in closed-loop or open-loop systems. The type of geothermal system your contractor recommends will depend on your local climate, the size of your home, and your overall budget.
Installing a geothermal system can cost between $10,000 and $40,000. Factors such as location, the size of the area, and labor fees also influence the overall cost.
Prices vary by loop type and system size. Labor to install your heat pump usually accounts for 50% to 70% of your total project costs.
| Type of Geothermal System | Average Cost Range |
| Horizontal loop system | $15,000–$30,000 |
| Vertical loop system | $25,000–$40,000 |
| Pond or lake loop system | $10,000–$30,000 |
| Open-loop system | $25,000–$30,000 |
Installing a geothermal system usually requires land excavation and prep, interior ductwork, and permits.
| Additional Geothermal Costs | Estimated Cost |
| Permits | $100–$1,000 |
| Soil testing | $1,400–$5,100 |
| Ductwork | $2,000–$6,000 |
| Excavation and trenching | $5,000–$15,000 |
| Regrading | $2,100–$6,500 |
Geothermal systems are more complex than your traditional split HVAC, and even high-quality installations are prone to maintenance.
Renovate’s network of professionals can help address and mitigate issues like:
Before you start your geothermal upgrade, make sure you cover all the bases that could impact your project timeline and cost:
Your property’s dimensions determine which type of loop system you can install. Homes with spacious yards might opt for horizontal loops, while smaller lots might require vertical drilling.
We partner with top-notch contractors with lots of experience installing geothermal heat pumps, which can save you from costly mistakes.
Most geothermal projects require you to apply for permits before you can install a geothermal system. Your contractor will typically handle pulling the necessary permits.
These approvals can take time, and there are fees, so talk to your contractor about your local rules and regulations. It’s better to handle these permits early to avoid surprise delays.
If your energy usage is high, a geothermal system might offer bigger monthly savings. A heat pump’s efficiency will vary by brand, coefficient of performance (COP), and energy efficient ratio (EER). Most geothermal heat pumps have a COP between 3 and 5 and an EER between 15 and 45 EER. The higher the rating, the better the system performance.
Plus, geothermal heat pumps qualify for tax incentives and rebates of 30%, according to ENERGY STAR.
Complicated installation logistics make this project best left to professionals, like the contractors in Renovate’s network. Before running interior ductwork, they’ll need to prep the yard site, which could include testing and diagnosing the soil type, excavating the land, and drilling holes to install the underground loops.
Allow your contractor to evaluate your yard's accessibility, its current landscape, and soil conditions before estimating installation costs and timelines.
Renovate simplifies the process of finding geothermal financing deals and a professional to install the system. Here are some additional benefits of using Renovate to explore geothermal loans:
It’s free to use our financing request form and connect with experienced contractors who may offer flexible financing solutions. Renovate will reference its network of pre-screened heating and cooling professionals and show you affordable payment plans without a high upfront cost.
Renovate partners with a large network of prescreened professionals, unlocking more opportunities for you to find financing that fits your budget. Plus, our inclusive lender network works with homeowners with varying credit profiles, putting your eco-friendly goals within reach.
Not every HVAC professional specializes in geothermal systems. Renovate helps you connect with skilled professionals with experience installing geothermal setups. This can reduce the risk of errors and ensure you get the most out of your new system.
Many lenders consider factors beyond your credit score, like income and employment history, when qualifying applicants for a geothermal loan. However, your interest rates may be higher than those awarded to homeowners with good or excellent credit.
Depending on your chosen loop type, installing a geothermal system in a 2,000-square-foot house can cost between $15,000 and $38,000. Additional factors like excavation and ductwork will also influence the total cost.
Geothermal heating and cooling offers year-round comfort and lower energy bills for homeowners in a variety of climates. Though the upfront cost can be higher than a standard HVAC system, long-term savings on your utilities often make it a good investment. Experts predict that a geothermal system will pay for itself in about 10 years.
You may see a slight increase in electric use since the system runs on electricity. However, most people see lower overall energy costs throughout the year because geothermal uses less energy in the summer months to cool. Geothermal also replaces other more expensive heating fuels, like oil or propane.
