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Freedom251 › Blog › energy efficiency

Are Homeowners Switching to Geothermal Heating? What the Numbers Actually Show

By Freedom251 Team · · 4 min read

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Geothermal heat pumps can heat and cool homes efficiently, but the evidence does not show that millions of homeowners are switching today. The widely cited millions figure is a U.S. Department of Energy projection: geothermal heat pumps could serve the equivalent of 7 million homes by 2035, not a count of current installations. Whether one makes sense for your home depends on the property, project cost and local energy prices.

What “geothermal heating” means for a home

Residential geothermal usually means a geothermal or ground-source heat pump (GHP or GSHP), not a deep-earth power plant. The system exchanges heat with shallow ground or groundwater: it draws heat from the ground in winter and moves indoor heat into the ground in summer. The relatively stable shallow-ground temperatures—DOE gives a broad range of 40–70°F—make this a source and sink for heating and cooling. ENERGY STAR says some systems can also provide water heating.

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DOE says ground-source heat pumps can be used in all 50 U.S. states. That describes broad geographic potential, not a guarantee that a particular lot, building or project is suitable or cost-effective.

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Are millions of homeowners ditching HVAC now?

That claim overstates what the available figures establish. DOE’s January 10, 2025 announcement describes a possible future market: GHPs could serve the equivalent of 7 million homes by 2035, tripling the then-current U.S. capacity. If the industry sustains roughly 10% annual growth, the agency says deployment could reach the equivalent of 36 million homes by 2050. Those are projections, not present-day adoption counts or proof of a current mass switch.

The same announcement estimates a potential $100–150 billion in capital deployed for GHP installations by 2035. That, too, is a projected investment opportunity rather than completed spending. DOE also describes possible reductions in peak electricity demand and grid infrastructure needs from widespread deployment; it does not promise a particular bill reduction or resilience benefit to an individual household.

Why consider a ground-source heat pump?

Efficiency potential

ENERGY STAR says geothermal heat pumps use 61% less energy than a standard model and estimates savings of nearly $830 annually and more than $9,500 over a 15-year product life. These are ENERGY STAR comparisons and estimates, not guaranteed savings for a specific house. Actual results depend on the home, equipment, energy rates and the system being replaced.

Rank #2
1.5 to 2 Ton Horizontal Ground Loop Geothermal Installation Kit
  • Installation by a licensed professional required
  • Kit Includes: 2 loop pipes, 1 insulted header, 1 Flow Center, 1 hose kit, 5 gallon transfer fluid
  • This kit ships on two pallets

One system for heating and cooling

Because a GHP exchanges heat in both directions, it can provide heating and cooling. Whether it can replace your existing furnace and air conditioner depends on the system design, the building’s heating and cooling needs, and its distribution system. A project may require changes to ducts or hydronic distribution.

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Potential operating savings, with a substantial project decision

DOE says GHPs can be added to existing buildings, while warning that upfront costs may be high relative to alternatives. Lower energy use may improve the long-term economics, but the outcome must be tested against actual bids, financing, energy rates and the home’s expected load—not assumed from a general savings estimate.

What determines whether geothermal is worth it?

Compare a professionally designed geothermal proposal with an air-source heat pump and with keeping or replacing your current fuel-based system. Use the same assumptions for each option, and assess:

  • Total installed cost: Include equipment, drilling or excavation, ground-loop work, financing, and any duct or hydronic changes.
  • Expected operating cost: Ask bidders to show projected annual energy use and the rates, climate and load assumptions behind it. Compare your actual electricity and fuel prices.
  • Site feasibility: Consider lot access, geology, groundwater conditions, permits and the proposed loop configuration.
  • Capacity and comfort: Confirm that the system is designed for the home’s heating and cooling needs and identify distribution-system work.
  • Quality and service: Check equipment certification, design documentation, installer qualifications, warranty terms, local service coverage and maintenance requirements.
  • Current incentives: Verify state and utility programs for your location and installation date; do not count an expired federal credit as a current discount.

How to assess a home and compare bids

DOE recommends asking a geothermal designer or local professional engineer to assess the building and site, rather than relying only on an installer. It points homeowners to searchable directories from the International Ground Source Heat Pump Association and the Geothermal Exchange Organization.

Rank #4
Hot Water Recirculating Pump 120W for Electric Water Heater System
  • 【Premium Material】- The recirculating pump uses heavy-duty stainless steel pump head, aluminum pump housing and PP impeller, featuring high resistance to stain, water, corrosion, leakage. Brass fittings and water-stop also included, which enbales several years of good resistance.
  • 【Main Parameter】- NPT 3/4 inch (19.05 mm) inlet/outlet. Voltage/Frequency: 110-120V, 60Hz. Rated power: 120 W. Max flow: 30 LPM (7.8 GPM). Max head: 10.9 m (36 ft). Fluid temp range: 0℉ -+212℉. 25dB low-noise operation.
  • 【Manual/Auto Switch】- This pump boasts both manual and auto mode with rated power 120W. It is convenient for you to turn on/off the pump automatically with auto mode, while manual mode enables constant work of the pump.
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  1. Have the home and site assessed for suitability, including the likely loop configuration and any access or permitting constraints.
  2. Get comparable proposals that document the building load calculation, ground-loop design, projected annual energy use and the assumptions behind it.
  3. Ask each bidder to itemize installed price, scope exclusions, permits, equipment certification, warranty, service plan and references for comparable projects.
  4. Compare the proposals with alternatives using your own energy rates and financing terms, then verify any local incentives directly with the relevant state energy office or utility.

ENERGY STAR advises buyers to seek certified products and quality installation. A ground-source system is a professionally designed installation, not a consumer DIY equipment swap.

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Federal tax-credit status for new 2026 installations

The former federal residential clean energy credit under Section 25D is not available for expenditures made after December 31, 2025, according to the IRS. The IRS also says an installation completed after that date counts as a post-cutoff expenditure even if it was paid for earlier. Older ENERGY STAR material describes prior credit windows, including a 30% credit for qualifying property installed through 2025; it should not be read as authorizing a credit for a new 2026 residential installation. Check state and utility programs for any current local incentives, which vary by location and date.

Best Value
3.5 Ton 14 Seer Goodman Package Heat Pump - GPH1442H41
  • Factory Installed Bi-Flow Liquid Line Filter Dryer
  • Aluminum fin coil
  • Permanently lubricated motor condenser fan
  • Closet with Louvered Coil Protection

Who should take a closer look?

Geothermal is worth evaluating if you are planning a major heating and cooling replacement, can accommodate the proposed ground loop, and want to compare long-term operating costs with the full installed project price. It is not an automatic upgrade for every house: site conditions, distribution changes, financing and local energy prices can change the economics. Start with a site assessment and comparable written bids rather than assuming the national efficiency estimate will apply to your home.

Quick Recap

Bestseller No. 2
1.5 to 2 Ton Horizontal Ground Loop Geothermal Installation Kit
1.5 to 2 Ton Horizontal Ground Loop Geothermal Installation Kit
Installation by a licensed professional required; This kit ships on two pallets
$3,312.24
Bestseller No. 5
3.5 Ton 14 Seer Goodman Package Heat Pump - GPH1442H41
3.5 Ton 14 Seer Goodman Package Heat Pump - GPH1442H41
Factory Installed Bi-Flow Liquid Line Filter Dryer; Aluminum fin coil; Permanently lubricated motor condenser fan
$3,930.00

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

energy efficiencygeothermal heatingground-source heat pumpsheat pumpshome HVAC

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