Rewiring America home

Geothermal Heating Installation

Average Lifespan

20-50 years

Geothermal or ‘ground-source’ heat pumps use the stable temperature underground to heat and cool your home.

Geothermal heating is 3-5 times more efficient than traditional heating systems, and doesn’t burn fossil fuels!

Incentives and Costs

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Tax Credit


Of equipment and installation costs

25D provides households an uncapped 30 percent tax credit for a geothermal heating installation. An average geothermal installation costs about $24,000, thus the average tax credit will be around $7,200. Your actual costs will depend on a variety of factors, including the size of your house and size of your planned geothermal installation.

All the details

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How does it work?

Geothermal or ‘ground-source’ heat pumps function much like every other type of heat pump, by capturing and moving heat between indoors and out. The primary difference is that geothermal systems transfer heat with the earth, through long loops of liquid-filled pipe buried in the ground.

Because the earth even a few feet underneath our feet remains at a stable temperature all year long, geothermal heating doesn’t have to do much work to extract and disperse heat. As a result, geothermal heating can be even more efficient than air source heat pumps.

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