We’ve already discussed the several considerations that come into play when estimating the cost of a geothermal system installation. Putting those questions aside for a moment, let’s look at the costs of the basic components of a geothermal installation: heat pumps and ground loops.
The two types of geothermal heat pumps are water-to-air and water-to-water. Both can do heating and cooling, as well as hot water if you would like that option. The two types of ground loops we utilize are horizontal, or pond, loops, and vertical loops. So, there are four different combinations of heat pump and ground loop that can be installed, and each configuration has a different price.
Below are 4 examples of costs for a two story 2,500 ft2 home, utilizing the existing New York State credits and incentives.
1. Water-to-Air with Horizontal or Pond Loops
Utilizes current ductwork in your home.
| SYSTEM COST | $43,500 |
| Geothermal Utility Rebate | -$7,755 |
| CONTRACT COST | $35,745 |
| 30% federal Tax Credit | -$10,724 |
| 25% state tax credit ($5,000 max) | -$5,000 |
| INVESTMENT TOTAL | $20,022 |
Investment total with geothermal supplemental hot water = $23,802
2. Water-to-Air with Vertical Loops
Utilizes the current ductwork in your home.
| SYSTEM COST | $58,750 |
| Geothermal Utility Rebate | -$7,855 |
| CONTRACT COST | $50,895 |
| 30% federal Tax Credit | -$15,269 |
| 25% state tax credit ($5,000 max) | -$5,000 |
| INVESTMENT TOTAL | $30,627 |
Investment total with geothermal supplemental hot water = $33,882
3. Water-to-Water with Horizontal or Pond Loops
Utilizes your current radiant distribution (baseboard, radiators, radiant flooring), with up to 4 zones. Does not include cooling. Cooling costs are customized for each home and can add between $5,000 to – $20,000 to the contract cost.
| SYSTEM COST | $49,000 |
| Geothermal Utility Rebate | -$7,515 |
| CONTRACT COST | $41,485 |
| 30% federal Tax Credit | -$12,446 |
| 25% state tax credit ($5,000 max) | -$5,000 |
| INVESTMENT TOTAL | $24,040 |
Investment total with geothermal supplemental hot water = $27,295
4. Water-to-Water with Vertical Loops
Utilizes your current radiant distribution (baseboard, radiators, radiant flooring), with up to 4 zones. Does not include cooling. Cooling costs are customized for each home and can add between $5,000 to – $20,000 to the contract cost.
| SYSTEM COST | $65,000 |
| Geothermal Utility Rebate | -$7,515 |
| CONTRACT COST | $57,485 |
| 30% federal Tax Credit | -$17,246 |
| 25% state tax credit ($5,000 max) | -$5,000 |
| INVESTMENT TOTAL | $35,240 |
Investment total with geothermal supplemental hot water = $38,915
Learn more about other factors for consideration when estimating a geothermal system, then read about all the potential savings.
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Will Geothermal Increase the Value of My Home?
Geothermal will absolutely increase the resale value of your home because you now have the most energy efficient heating and cooling system available. This makes it more lucrative to potential buyers.
Geothermal System Costs: Considerations
The cost of geothermal systems varies. This depends on specific customer information, such as property details and needs. These systems are gaining popularity due to rebates and tax credits.
