Geothermal Heat Pump Cost (2026): By Loop Type & Size

A geothermal heat pump moves heat between your home and the ground through buried pipe loops. The equipment is similar to a regular heat pump; the ground loop is what makes it expensive. Angi puts the national average at $15,206, based on 297 projects, with most homeowners paying $4,541 to $26,537. HomeGuide's typical range is $20,000 to $50,000+, and complex projects can exceed $75,000.

Cost by loop type

Loop	Angi	HomeGuide
Open loop	$10,000 – $28,000	$15,000 – $35,000+
Pond loop	$10,000 – $32,000	$25,000 – $45,000+
Horizontal loop	$15,000 – $34,000	$20,000 – $50,000+
Vertical loop	$20,000 – $38,000	$25,000 – $80,000+

Horizontal loops are buried in trenches and need a large yard. Vertical loops go down drilled boreholes; HomeGuide notes these run 100 to 400 feet deep, with most homes needing three to five. Pond loops sit in a body of water, and open loops use well water directly.

Cost by size

Size	Angi	HomeGuide (installed)
2 tons	$5,000 – $16,000	$15,000 – $20,000+
3 tons	$7,500 – $24,000	$18,500 – $28,000+
4 tons	$10,000 – $32,000	$20,000 – $36,000+
5 tons	$12,500 – $40,000	$30,000 – $50,000+

HomeGuide lists the indoor unit alone at $3,500 to $14,000 and says labor makes up 50% to 70% of the installation cost.

Cost by home size

Home size	HomeGuide
1,200 – 1,500 sq ft	$15,000 – $23,000+
1,500 – 2,000 sq ft	$18,000 – $28,000+
2,000 – 2,500 sq ft	$20,000 – $36,000+
2,500 – 3,500 sq ft	$30,000 – $50,000+

Yard work and other costs

Item	Cost	Source
Yard work overall	$5,000 – $15,000	Angi
Excavation	$1,550 – $6,300	Angi
Trenching	$5 – $12 per linear foot	Angi
Soil testing	$600 – $2,000	Angi
Regrading	$1,000 – $3,300	Angi
Ductwork	$1,400 – $5,600+	Angi, HomeGuide
Sizing and design	$500 – $1,000+	HomeGuide
Permits	$50 – $2,000	HomeGuide

Operating cost and payback

HomeGuide puts operating costs at $50 to $200 per month, and $50 to $80 for a well-insulated 2,000 sq ft home. It says geothermal heating and cooling can be 25% to 75% cheaper to run than other systems, with a payback period of 8 to 15 years. Angi estimates about 10 years.

Lifespan

HomeGuide lists 20 to 25 years for the indoor unit and 40 to 60 years for the ground loops, compared with 10 to 15 years for a standard heat pump. For air-source prices, see heat pump cost.

How a geothermal heat pump works

A geothermal (ground-source) heat pump moves heat between the house and the ground through a loop of buried pipe. Because the ground temperature stays fairly steady through the year, the system can heat and cool more efficiently than one that uses outdoor air.

Types of ground loops

Horizontal: pipe laid in long trenches. It needs a larger yard.
Vertical: pipe placed in deep drilled boreholes. It suits smaller lots but costs more to drill.
Pond or lake: coils placed in a nearby body of water.
Open loop: uses well water directly, where local rules allow it.

What affects the price

Loop type and the amount of drilling or trenching.
Soil and rock conditions on the property.
House size and heating and cooling load.
Whether existing ductwork can be used.
Restoring the yard after the work.

Pros and cons

Pros: low operating costs, quiet indoor and outdoor operation, and a ground loop that can last for many decades.
Cons: a high upfront price, disruption to the yard, and a smaller pool of experienced installers.

Questions to ask

How many geothermal systems has your company installed?
Which loop type fits my lot, and why?
Who handles the drilling, and is it covered by your warranty?

In Texas

Texas soil and geology vary widely, from clay to limestone, which changes how hard drilling is. Large cooling loads in Texas also affect how long the loop needs to be. Get a site-specific design rather than a quote based only on square footage.

The federal credit has ended

Many geothermal cost articles still quote prices after a 30% federal tax credit. According to the IRS, the Residential Clean Energy Credit (section 25D), which covered geothermal heat pumps, is not allowed for expenditures made after December 31, 2025. For a system installed now, compare the full price, and check for state, local or utility incentives instead.

How the ground loop is installed

Horizontal loops are laid in trenches several feet deep across the yard. They need more land but are usually cheaper to install.

Vertical loops are installed in boreholes drilled deep into the ground, often by a well-drilling rig. They need little surface area, which suits smaller lots, but drilling costs more.

Pond or lake loops are coiled and sunk in a body of water on the property, which can be the cheapest option where it is available.

Open-loop systems pump groundwater from a well, pass it through the heat pump and return it to the ground or a second well. They depend on water quality and local rules.

The loop type is often decided by the site rather than by preference.

Why the loop lasts so long

The buried loop is usually high-density polyethylene pipe with fused joints, designed to last for decades. The indoor heat pump unit has a shorter life, similar to other HVAC equipment, but when it is replaced, the loop can usually stay. That makes later replacements much cheaper than the first install.

Who geothermal fits best

Geothermal systems make the most sense for homeowners planning to stay in the house for many years, in homes with high heating and cooling needs, and where the site allows a cost-effective loop. They are also popular in new construction, where the loop can be installed before landscaping.

Questions to ask installers

What loop type does my site support, and why?
Who does the drilling or trenching, and is it included?
Is the system sized with a load calculation?
How will the yard be restored?
What warranties cover the loop, the heat pump and the labor?

Upkeep

The indoor unit needs regular filter changes.

Records

Keep the loop layout drawing for future digging or repairs. Mark where the loop runs so future fence posts, trees or digging do not damage it.

City	Businesses listed	Avg. Google rating	Total reviews
Houston	464	4.7	72,003
Dallas	121	4.8	26,510
San Antonio	200	4.7	63,399
Austin	108	4.8	39,568
Fort Worth	99	4.7	25,658
El Paso	66	4.5	11,208

Geothermal Heat Pump Cost