Geothermal Heat Pumps

How They Work

Geothermal heat pumps (GHPs) can have many names, including GeoExchange, earth-coupled, or ground-source heat pumps. As with any heat pump, GHPs can heat, cool and, if so equipped, supply the house with hot water. In all cases, they use the relatively constant temperature of the earth as a source of summer cooling and winter heating instead of the outside air. And, despite their name, they do not need to be located near volcanoes or geysers. Even though the cost of installing a GHP can be several times that of an air source heat pump, the additional costs may be returned in energy savings in as little as 5 to 10 years. Find more information about GHPs here.

What Assistance Is Available for Me?

The federal government offers a tax credit of up to 30% of the cost of the purchase and installation of a GHP (no maximum credit). Find more information about federal tax credits for GHPs here.

What Products Are Eligible?

GHPs that use the ground or groundwater as a thermal energy source (to heat) or as a thermal energy sink (to cool) a home and are ENERGY STAR certified are eligible for the federal tax credit. Find eligible products here.

Important Dates

The federal tax credits are available for products purchased and installed between January 1, 2023, and December 31, 2032.