Geothermal heat pump cost
A geothermal (ground-source) heat pump costs $15,000 to $35,000 installed for most homes, and $40,000 to $75,000 for large homes. Most of the cost is the underground loop; the heat pump unit itself is $3,500 to $14,000.
Quick answer
$15,000 – $35,000installed, typical home
Most homes pay $18,000 to $36,000 for a complete geothermal system. Small homes start near $15,000, while large homes with vertical wells can reach $75,000.
Cost by home size
| Home size (sq ft) | Installed |
|---|---|
| 1,200 – 1,500 | $15,000 – $23,000+ |
| 1,500 – 2,000 | $18,000 – $28,000+ |
| 2,000 – 2,500 | $20,000 – $36,000+ |
| 2,500 – 3,500 | $30,000 – $50,000+ |
| 3,500+ | $40,000 – $75,000+ |
Cost by system size
| Size | Unit price | Installed |
|---|---|---|
| 2 tons | $3,500 – $7,000 | $15,000 – $20,000+ |
| 3 tons | $5,000 – $8,000 | $18,500 – $28,000+ |
| 4 tons | $6,500 – $10,000 | $20,000 – $36,000+ |
| 5 tons | $7,500 – $12,000 | $30,000 – $50,000+ |
| 6 tons | $9,000 – $14,000 | $38,000 – $75,000+ |
Cost by loop type
| Loop | Installed | Best for |
|---|---|---|
| Open loop (well water) | $15,000 – $35,000+ | Ample clean groundwater |
| Horizontal loop | $20,000 – $50,000+ | Large lots |
| Pond loop | $25,000 – $45,000+ | Property with a pond |
| Vertical loop | $25,000 – $80,000+ | Small lots, rocky soil |
Tax credits and payback
The 30% federal 25D credit for geothermal ended for expenditures after December 31, 2025, which raises the net cost for 2026 projects. Some utilities and states still offer $500 to $2,000 or more. Geothermal systems can cut heating and cooling bills by 25% to 50%, and ground loops last 50 years or more, so payback is best in new construction or when replacing an expensive oil or propane system. See HVAC tax credits and rebates in 2026.
How to get a fair quote
- Get at least three written quotes that list the brand, model number, size (tons or BTU) and efficiency rating.
- Ask whether the price includes permits, removal of the old unit, refrigerant, a new thermostat and any duct or electrical work.
- Ask for a load calculation (Manual J) instead of matching the old unit's size by default.
- Compare labor warranties (1 to 10 years) as well as the manufacturer's parts warranty, and register the equipment.
- Schedule non-urgent work in spring or fall, when contractors are less busy and more willing to discount.
Frequently asked questions
How much does a geothermal system cost for a 2,000 sq ft house?
Roughly $18,000 to $36,000, depending on loop type, soil and the system size (usually 3 to 4 tons).
Is there still a tax credit for geothermal heat pumps?
Not for 2026 installs. The 30% federal credit ended for expenditures after December 31, 2025. Check for utility and state incentives.
How long does geothermal last?
The indoor heat pump lasts about 20 to 25 years; the underground loop can last 50 years or more.
Sources
Prices are national averages and typical ranges from published cost data. Your price depends on your home, region, equipment and contractor, so get several written quotes. Heat & Air Costs is not an HVAC contractor; read our disclaimer.