Clean Energy 101: Geothermal Heat Pumps - RMI

This RMI fact sheet explains the technology, benefits, and market opportunities for geothermal heat pumps (also known as ground-source heat pumps) in the United States. It highlights their efficiency in both hot and cold climates, their role in reducing building emissions, and the impact of the Inflation Reduction Act on lowering installation costs.

• Geothermal heat pumps are highly efficient HVAC systems that use the constant temperature of the earth to provide heating, cooling, and hot water. Because they move heat rather than relying on combustion, they can reduce energy costs by up to 50 percent and produce zero direct emissions.
• Networked geothermal systems, which connect multiple buildings through shared piping, can achieve efficiencies exceeding 500 percent. These systems are applicable to universities, hospitals, commercial office parks, and residential neighborhoods, such as a 400-home project in Whisper Valley, Texas.
• In the US Midwest, geothermal heat pumps significantly outperform fossil fuel alternatives in emissions and energy use, producing approximately 85 percent fewer emissions than gas furnaces and 90 percent fewer than propane furnaces through 2050. They use about 80 percent less energy annually than industry-standard fossil fuel furnaces in this region.
• The Inflation Reduction Act (IRA) of 2022 reduces the high upfront costs of geothermal installation through tax credits and rebates. A 30 percent federal tax credit combined with rebates can lower household project costs by up to 50 percent, potentially saving up to $15,000 for expensive installations.
• Geothermal heat pumps are effective in extreme cold, such as in Minnesota, where they maintain high output capacity. An example is an ice arena in Woodbury, MN, which is expected to halve its energy use and save over $100,000 in annual utility costs.

APA

RMI (2023). Clean Energy 101: Geothermal Heat Pumps - RMI. https://rmi.org/resources/clean-energy-101-geothermal-heat-pumps/

Chicago

RMI. Clean Energy 101: Geothermal Heat Pumps - RMI. 2023. https://rmi.org/resources/clean-energy-101-geothermal-heat-pumps/.

Wikipedia

{{cite report |author=RMI |title=Clean Energy 101: Geothermal Heat Pumps - RMI |date=29 March 2023 |url=https://rmi.org/resources/clean-energy-101-geothermal-heat-pumps/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023clean, author = {{RMI}}, title = {{Clean Energy 101: Geothermal Heat Pumps - RMI}}, institution = {RMI}, year = {2023}, month = mar, url = {https://rmi.org/resources/clean-energy-101-geothermal-heat-pumps/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }