A geothermal system and a
heat pump system have a somewhat similar price. According to
Modernize.com, the average cost for a heat pump is between $3,875 and $10,000.
And according to
Homeadviser.com, the average price for a geothermal heat pump is between $3,592 and $15,578.
But, a geothermal system lasts almost twice as long as a heat pump. Energy.gov has stated that a geothermal system lasts around 25 years. And a heat pump lasts for about 15 years, according to a range of sources, such as
here and
here.
Also, a geothermal heat pump uses 25% to 50% less electricity than a heat pump. So, you’ll spend 25% to 50% less on electricity month on month.
I previously researched how the SEER rating of a heat pump affects how much electricity it uses in
this article. As part of my research, I found that a 50% reduction in energy consumption over a whole year is roughly equal to $600 a year.
Using that math, each year, a geothermal system will save you between $300 and $600. Although these are good savings each year, you’ll also get a considerable saving after 15 years, when it comes time to replace a heat pump.
Based on all of this information, I did a side by side comparison of how the cost savings will add up over the
life of your heat pump .
| Year | Heat pump cost | Geothermal system cost | Energy saving | Net saving (average) |
|---|
| 1 | $3,875 – $10,000 | $3,592 to $15,578 | $300 to $600 | $450 |
| 2 | – | – | $300 to $600 | $900 |
| 3 | – | – | $300 to $600 | $1350 |
| 4 | – | – | $300 to $600 | $1800 |
| 5 | – | – | $300 to $600 | $2250 |
| 6 | – | – | $300 to $600 | $2700 |
| 7 | – | – | $300 to $600 | $3150 |
As you can see, the cost-saving adds up, and at around year 15, you save a lot because you’ll need to replace your heat pump, which costs an additional $3,875 to $10,000.
