How Much Does Geothermal HVAC Cost for Homes?

Update: Interested in learning a little bit more about how geothermal heating and cooling works for homes? Check out our article that breaks it down for you!

Heating and cooling costs are one of the number one factors when it comes to power consumption in the United States, with air conditioning accounting for about 17% of electricity costs in America every year. Geothermal energy is one of the ways that homeowners are reducing their energy costs and increasing their HVAC efficiency! But if you’re considering getting a geothermal system for your home, then you’re probably considering the upfront geothermal HVAC cost for installation.

Today, we’re going to be discussing the average cost of geothermal HVAC installation for homes in Tennessee, what impacts the price of a new system, and what you can do to offset the price tag of a new geothermal heat pump.

What is a Geothermal System?

First of all, let’s go over what geothermal systems actually are. Geothermal heating and cooling systems use the natural heat of the Earth to either heat or cool your home.

Did you know? A ground source heat pump is one of the most energy efficient systems you can get. You can reduce your heating cost by up to 50% and cooling cost by up to 35%, making it substantially better than traditional HVAC systems. With a lower carbon footprint and greater efficiency, geothermal ground heating and cooling are becoming more and more popular.

What is the Geothermal System Cost in Tennessee?

A full geothermal unit install or replacement will always be more expensive than a standard air conditioner or heat pump.

The average cost of a brand-new, full geothermal heating system installation in Tennessee is between $18000 and $30000. This price range can vary widely depending on the size of your home, the type of system you choose, and the efficiency of your installation. If you’re only considering replacing your current geothermal heat pump in 2021 or 2022, we have good news – your average cost will be closer to $10,600!

Even better, there is an incentive to get a more efficient, environmentally-friendly system: the government provides Federal tax credits to homeowners who get new systems that meet certain Energy Star requirements for geothermal heat pumps.

Let’s take a look at what will impact the cost of your system.

The Size of Your Home

Larger homes require geothermal systems that are larger in capacity, which means that geothermal HVAC installation costs will increase as the size of your home increases. A residential unit will usually need to be between 2.5 tons to 5 tons, but very large spaces can need up to 10 tons.

The Type of Geothermal Heat Pump System You Choose

There are several types of system configurations and categories for geothermal heat pumps. There are open- and closed-loop systems as well as horizontal, vertical, and pond ground loop systems.

Open and Closed Systems

• Open-Loop Systems: Open-loop systems are used in areas where your pipes can use groundwater or well water. The geothermal heat pump unit pulls groundwater from a well, absorbs heat or coolness from it, and then pumps it back into the ground again. While less expensive, these require more maintenance and need plenty of water close to the surface.
• Closed-Loop Systems: Closed-loop geothermal is more common. It is used where there isn’t adequate water for an open system or there are environmental regulations. Closed loops use antifreeze and water that run through circular piping.

Horizontal, Vertical, and Pond Ground Loop Systems

• Horizontal: While the least expensive option, these kinds of geothermal heating systems require more land for straight pipes or conductive soil for slinky-type piping.
• Vertical: This is the most expensive kind of loop because it requires boring a hole 100-400 feet; however, it requires less land.
• Pond Ground: This type of system requires a pond that is at least 3 meters deep, and the cost depends on where your pond is located on the property.

The Efficiency of Your System

Geothermal performance is measured in an Energy Efficiency Ratio (EER), with most geothermal running between 15 and 45 EER. The higher the EER rating of your geothermal HVAC, the more efficient it will be. But a greater efficiency will often come with a high price tag.

Getting Your Own Geothermal Heating and Cooling System

Curious about installing geothermal heating and cooling for your own Nashville TN home? A new system or a replacement will require a professional company for proper, safe installation. Make sure you contact a local, certified HVAC service for your geothermal installation needs (and to determine your geothermal installation cost).

If you want geothermal heating and cooling for your home, contact us today! We have years of experience helping homeowners choose the perfect HVAC system to fit their needs and budget. With geothermal, you can save up to 60% on your energy bills, so don’t wait. It’s never the wrong time to call Right Time!