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American Focus > Blog > Environment > Is a Geothermal Energy System Right for Your Home?
Environment

Is a Geothermal Energy System Right for Your Home?

Last updated: January 6, 2026 5:20 am
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Is a Geothermal Energy System Right for Your Home?
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This water is pumped through the geothermal heat pump system, where it exchanges heat with the refrigerant loop. The water is then returned to the ground through a separate well or surface discharge. Open-loop systems are typically more efficient than closed-loop systems, but they require a clean and reliable source of water.

Hybrid Systems

Hybrid geothermal systems combine geothermal technology with another heating and cooling system, such as a traditional furnace or air-source heat pump. This allows the geothermal system to operate more efficiently in extreme weather conditions or peak demand times. Hybrid systems are a good option for homeowners who want the benefits of geothermal energy but also want a backup system in case of equipment failure or extreme weather events.

Conclusion

Geothermal energy is a clean, efficient, and cost-effective way to heat and cool your home. With advancements in technology and changes in legislation making geothermal systems more affordable and accessible, now is a great time to consider switching to geothermal energy. Whether you are building a new home or retrofitting an existing one, geothermal heat pumps can help you save money on energy bills while reducing your carbon footprint. Consider the different types of geothermal systems available and choose the one that best fits your home and climate needs.

Geothermal heating and cooling systems are a sustainable and efficient way to control the temperature in your home. These systems work by utilizing the natural heat stored in the earth to provide heating in the winter and cooling in the summer. The water in the system goes through tubing and a heat pump, where it exchanges heat with a refrigerant loop to cool the home. Afterward, the water returns to the ground through a well or surface outlet.

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There are different types of geothermal systems, including open-loop, closed-loop, and hybrid systems. Open-loop systems are cost-effective to install but require more maintenance, such as changing filters and testing wells. They work best if you have access to clean water and can comply with local regulations. Closed-loop systems are more expensive but require less maintenance and are suitable for most properties. Hybrid systems combine different geothermal resources, such as standing column wells and cooling towers, and are ideal for cooling in warmer climates.

Incentives for installing geothermal systems, such as tax credits and rebates, can help offset the initial cost. The Residential Clean Energy Tax Credit, which ended in 2025, offered a 30% tax credit for ENERGY STAR-certified geothermal heat pump installations. It is important to check with the Database of State Incentives for Renewables and Efficiency (DSIRE) to find available incentives in your area.

For existing homeowners, consulting with a certified geothermal installer or designer is essential to determine if your property is suitable for a geothermal system. Factors such as land, soil, and climate will influence the installation process. For new homebuyers, asking builders about geothermal options is recommended. Some homebuilders, like Lennar in Colorado, offer geothermal heating and cooling in select communities.

Geothermal heat pumps have low running costs and can last for many years with minimal maintenance. They provide consistent comfort throughout the year, lower water-heating costs, and reduce your carbon footprint. By exploring the different geothermal system options and incentives available, you can make an informed decision to save on energy bills and create a more sustainable home environment. With leasing options making geothermal systems more accessible, 2025 could be the year that geothermal heating and cooling becomes a mainstream choice for American homes.

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