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How does a geothermal heat pump heat and cool a building?

A ground-source heat pump heats and cools by moving heat to or from the ground, which stays at a fairly constant temperature, making it very efficient but costly to install.

Updated 55 minutes ago4 min readVersion 2
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Covers: Explains how ground-source heat pumps use stable underground temperatures to provide both heating and cooling, covering the main system types (closed-loop horizontal, vertical, pond/lake, open-loop), the refrigeration cycle, and efficiency factors. Does not cover installation costs, tax incentives, or detailed engineering design.

Also answers: How do geothermal heat pumps work? · How does a ground source heat pump heat a house? · Geothermal heat pump heating and cooling explained · What is a geothermal heat pump and how does it work?

Modern outdoor heat pump unit next to building
Photo: alpha innotec

The short answer

Evidence-backed AI-prepared starting map

A geothermal (ground-source) heat pump is a building heating and cooling system that uses a heat pump to move heat to or from the ground, exploiting the relative constancy of ground temperature through the seasons. It is among the most energy-efficient ways to provide HVAC and water heating, using less energy than resistive electric heaters, with a coefficient of performance (CoP) typically in the range 3–6 — that is, 3–6 units of heat delivered per unit of electricity used. Setup costs are higher than other heating systems because ground loops must be installed over large areas or boreholes drilled; air-source heat pumps cost less to install but have a lower CoP in very cold or very hot weather.1

What this rests on3 independent sources
  • Evidence 17

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In brief

  1. A geothermal (ground-source) heat pump heats and cools by moving heat to or from the ground, which stays at a relatively constant temperature through the seasons.1

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  2. Efficiency is given as a coefficient of performance, typically 3–6 — 3–6 units of heat per unit of electricity — which is better than resistive electric heating.1

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  3. The main drawback is higher setup cost, because ground loops need large areas or drilled boreholes; air-source heat pumps cost less but perform worse in very cold or very hot weather.1

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  4. Ground-source heat pumps do not need a volcanic or high-temperature resource: even cold ground contains heat.2

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  5. Modelled US adoption for ground-source heat pumps reaches 251 GW-th by 2050 under high incentives, but cost uncertainty produces large variation in such projections.3

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At a glance

The picture in numbers

Live · updated just now

Units of heat delivered per unit of electricity used

3

low end of typical range

6

high end of typical range

Coefficient of performance of ground-source heat pumps1
Scenario results, not forecasts
  • Ground-source heat pumps251 GW-th
  • Thermal energy networks31 GW-th

Ground-source heat pumps is about 8.1 times thermal energy networks.

Modelled US adoption by 2050 under high incentives3
Direct geothermal heating broadly, not specifically heat pumps

20%

20 in every 100

Capacity factor of geothermal heating2

The evidence behind it

3 sources
  • Other studies and data1
  • Background2

Published in 2026

Sources on this page by kind and year
SourceKindYear
Geothermal heat pumps and thermal energy networks: Technical feasibility and market adoption.Other studies and data2026
Geothermal heating (Wikipedia)BackgroundUnknown
Ground source heat pump (Wikipedia)BackgroundUnknown

The community around it

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What it means for you

Which fits you?

Pick the situation closest to yours. Each answer says what it rests on.

If you want the most efficient option for both heating and cooling and can accommodate ground loops or boreholes

a ground-source heat pump is described as among the most energy-efficient technologies for HVAC and water heating, with a CoP typically of 3–6.1

Evidence-backed

If upfront cost is the binding constraint and you live in a mild climate

air-source heat pumps have lower set-up costs, though their CoP falls in very cold or very hot weather.1

Evidence-backed

If you are weighing whether a ground-source system is worth it in a very cold or very hot climate

the efficiency gap over air-source heat pumps is largest exactly in those conditions, since the ground temperature stays relatively constant.1

Evidence-backed

If you are trying to judge how widely ground-source heat pumps might spread

modelled US scenarios project 251 GW-th of adoption by 2050 under high incentives and tax credits, but cost uncertainty causes large variation, so treat such figures as scenarios rather than forecasts.3

Evidence-backed

If you are considering a shared or district-scale approach rather than a single building

thermal energy networks are the newer option and are modelled as having economic potential concentrated in dense-population areas, unlike the more widely applicable ground-source heat pump.3

Evidence-backed

The full story · 2 chapters

01

The core idea: a stable underground temperature

AI summary:The ground stays at a fairly constant temperature, so a heat pump can pull heat from it in winter and dump heat into it in summer, and even cold ground contains heat.

Evidence-backed

Evidence-backed: The ground stays at a relatively constant temperature through the seasons, and a ground-source heat pump takes advantage of that constancy. In winter the ground is warmer than the outside air, so heat can be extracted from it; in summer the ground is cooler than the outside air, so heat from the building can be rejected into it. The same equipment therefore serves both heating and cooling by reversing the direction in which heat is moved.1

Evidence-backed

Evidence-backed: This is distinct from high-temperature geothermal heating, which is the direct use of geothermal energy for heating and has been practised since the Paleolithic era. Most high-temperature geothermal heat is harvested near tectonic plate boundaries where volcanic activity brings heat close to the surface, and there ground and groundwater can be hotter than the target application temperature. The key point for heat pumps is that even cold ground contains heat, so a system does not need a volcanic resource to work.2

Evidence-backed

Evidence-backed: Because the heat pump moves existing heat rather than converting electricity directly into heat, thermal efficiency is high — no energy conversion is needed in the direct-use case — although capacity factors for geothermal heating tend to be low, around 20%, because heat is mostly needed in winter.2

02

Efficiency and the cost trade-off

AI summary:Ground-source heat pumps deliver 3–6 units of heat per unit of electricity but cost more upfront, while air-source units cost less and perform worse in extreme weather.

Evidence-backed

Evidence-backed: Efficiency is expressed as a coefficient of performance (CoP), typically 3–6 for ground-source heat pumps: 3–6 units of heat for each unit of electricity used. This is what makes them more efficient than resistive electric heaters for HVAC and water heating.1

Evidence-backed

Evidence-backed: The trade-off is upfront: setup costs are higher than for other heating systems because ground loops must be installed over large areas or boreholes drilled. Air-source heat pumps have lower set-up costs but a lower CoP in very cold or very hot weather — the conditions in which the stable ground temperature is most valuable.1

Evidence-backed

Evidence-backed: At the system level, ground-source heat pumps are the more established technology and are modelled as having widespread economic potential and adoption across the US, whereas the newer thermal energy network approach is modelled as concentrated in dense-population areas. In one scenario set, GHP adoption was projected to 251 GW-th by 2050 with high incentives and tax credits, against 31 GW-th for thermal energy networks. Uncertainties in cost structure translate into large variations in adoption, which is why demonstration projects and cost tracking matter.3

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  1. Efficiency is given as a coefficient of performance, typically — 3–6 units of heat per unit of electricity — which is better than resistive electric heating.

  2. Modelled US adoption for ground-source heat pumps reaches GW-th by 2050 under high incentives, but cost uncertainty produces large variation in such projections.

  3. A geothermal (ground-source) heat pump heats and cools by moving heat to or from the ground, which stays at a relatively constant temperature through the seasons.

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Outdoor heat pump unit next to a brick buildingUp nextHeat pump or gas furnace: which should heat your home?For a typical home, is it worth replacing a gas furnace or boiler with a heat pump, and when does it make sense?

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  1. 1
    Ground source heat pump (Wikipedia)
    WikipediaPublished Oct 10, 2026Checked Oct 11, 2026
    “A ground source heat pump (also geothermal heat pump) is a heating/cooling system for buildings that use a heat pump to transfer heat to or from the ground, taking advantage of the relative constancy of temperatures of the earth through the seasons. Ground-source heat pumps (GSHPs)—or geothermal heat pumps (GHPs), as they are commonly termed in North America—are among the most energy-efficient technologies for providing HVAC and water heating, using less energy than that consumed by resistive electric heaters. Efficiency is given as a coefficient of performance (CoP) which is typically in the range 3–6, meaning that the devices provide 3–6 units of heat for each unit of electricity used. Setup costs are higher than for other heating systems due to the requirement of installing ground loops over large areas or of drilling bore holes. Air-source heat pumps have lower set-up costs but have a lower CoP in very cold or very hot weather.”
  2. 2
    Geothermal heating (Wikipedia)
    WikipediaPublished Oct 6, 2026Checked Oct 11, 2026
    “Geothermal heating is the direct use of geothermal energy for some heating applications. Humans have taken advantage of geothermal heat this way since the Paleolithic era. Approximately seventy countries made direct use of a total of 270 PJ of geothermal heating in 2004. As of 2007, 28 GW of geothermal heating capacity is installed around the world, satisfying 0.07% of global primary energy consumption. Thermal efficiency is high since no energy conversion is needed, but capacity factors tend to be low (around 20%) since the heat is mostly needed in the winter. Geothermal energy originates from the heat retained within the Earth since the original formation of the planet, from radioactive decay of minerals, and from solar energy absorbed at the surface. Most high temperature geothermal heat is harvested in regions close to tectonic plate boundaries where volcanic activity rises close to the surface of the Earth. In these areas, ground and groundwater can be found with temperatures higher than the target temperature of the application. However, even cold ground contains heat.”
  3. 3
    Geothermal heat pumps and thermal energy networks: Technical feasibility and market adoption.
    iScience (Simpson et al.)Published Sep 9, 2026Checked Oct 11, 2026
    “Geothermal technologies, including geothermal heat pumps (GHPs) and thermal energy networks (TENs), are gaining traction as methods to efficiently meet heating and cooling loads. Changes to costs and incentives may impact adoption and can help support decision-making in effectively deploying GHPs and TENs. In this work, the updated distributed geothermal market demand (dGeo) model is used to analyze scenarios across the US demonstrating a range of economic potential and adoption for GHPs and TENs. We find that the more established GHP technology has widespread economic potential and adoption, while the newer TEN technology has economic potential and adoption concentrated in areas with dense populations. GHP adoption was projected to 251 GW-th by 2050 with high incentives and tax credits, while TEN adoption was projected at 31 GW-th by 2050. Uncertainties in cost structure translate to large variations in adoption, pointing to the importance of demonstration projects and cost-tracking efforts.”

How it changed

Published 1 time since Oct 11, 2026.

  1. Version 2Oct 11, 2026Live now

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Open questions

  • How do the main configurations — closed-loop horizontal, vertical, and pond/lake, and open-loop — differ in land area needed, drilling or excavation required, and performance?

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  • What are the step-by-step stages of the refrigeration cycle in heating versus cooling mode, and which components reverse between the two?

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  • What CoP values are actually measured in service across different climates and building types, rather than the typical range quoted?

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  • How much does the efficiency advantage over air-source heat pumps grow in very cold or very hot weather, in measured terms?

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