{"id":811,"date":"2026-01-06T11:00:10","date_gmt":"2026-01-06T12:00:10","guid":{"rendered":"http:\/\/www.djpaddington.com\/?p=811"},"modified":"2026-01-14T08:26:38","modified_gmt":"2026-01-14T08:26:38","slug":"is-a-geothermal-energy-system-right-for-your-home","status":"publish","type":"post","link":"http:\/\/www.djpaddington.com\/index.php\/2026\/01\/06\/is-a-geothermal-energy-system-right-for-your-home\/","title":{"rendered":"Is a Geothermal Energy System Right for Your Home?"},"content":{"rendered":"
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Geothermal energy comes from heat just below the earth\u2019s surface, where temperatures stay steady between 45 and 75 degrees Fahrenheit<\/a> all year.<\/p>\n

Geothermal power plants use this heat to make electricity, but homeowners can also use it to heat or cool their homes with a geothermal heat pump, which exchanges heat with the ground. The systems are good for the environment and can save money. Geothermal energy is clean, always available, and a reliable low-carbon choice.<\/p>\n

Home geothermal heat pumps usually use 25% to 50% less electricity<\/a> than regular heating and cooling systems. They are quieter, last longer, and need less maintenance. Homeowners can save up to 60% on heating and up to 50% on cooling costs each year.<\/p>\n

A January 2025 U.S. Department of Energy analysis<\/a> found that if geothermal heat pumps were widely used, the country could avoid building 24,500 miles of new power lines by 2050\u2014enough to cross the U.S. eight times. If about 70% of U.S. buildings were retrofitted with geothermal heat pumps and building improvements, electricity demand could drop by up to 13% compared to decarbonizing without geothermal technology.<\/p>\n

A DOE report called Pathways to Commercial Liftoff,<\/a> which was later retracted by the Trump Administration, estimated that geothermal heating and cooling could save enough energy to power 36 million homes by 2050 if the industry grows by 10% each year.<\/p>\n

Slow Progress To Date<\/h2>\n

Currently, only about 1% of U.S. homes\u2014approximately 1.3 million, many in the Southeast\u2014use geothermal heat pumps, compared to 13% that use air-source heat pumps. The EPA considers geothermal heat pumps<\/a> one of the most energy-efficient, environmentally clean, and cost-effective space conditioning systems available, with about 70% of the energy used coming from renewable energy stored in the ground.<\/p>\n

In a recent Sustainability In Your Ear<\/em> interview,<\/a> Dandelion Energy<\/a> CEO Dan Yates explained the efficiency advantages: “Geothermal is four times more efficient than a furnace and twice as efficient as an air-source heat pump. A geothermal system uses 25% the peak demand of an air-source heat pump system\u2014that is a gargantuan gap.”<\/p>\n

Yates described the earth as “a huge thermal battery.” He explained that geothermal systems store heat underground in the summer for use in winter, and send extra heat into the ground during summer. This helps reduce strain on the electrical grid when demand is highest.<\/p>\n

A Surprising Geothermal Unlock In The \u201cBig, Beautiful Bill\u201d<\/h2>\n

One big challenge for geothermal has been the upfront cost, which can be $20,000 to $31,000 for a home system. But in 2025, new changes started making geothermal more affordable and accessible.<\/p>\n

The One Big Beautiful Bill Act (H.R. 1), passed in July 2025, kept the 30-50% federal Commercial Investment Tax Credit for geothermal heat pumps through 2034. For the first time, it also allowed third-party leasing of home geothermal systems. This means builders and finance companies can now offer geothermal systems through leases, much like how rooftop solar became more available through leasing.<\/p>\n

Dan Yates from Dandelion Energy said this change is the key to making geothermal common in the next decade. Dandelion has teamed up with Lennar, a major home builder, to build 1,500 new homes with geothermal systems in Colorado over the next two years.<\/p>\n

“We are putting geothermal into brand new homes and townhomes that start in the $400,000 range,” explained Dandelion CEO Dan Yates. “This is no longer a product that is only available to a wealthy homeowner.”<\/p>\n

Can You Add Geothermal In An Existing Home?<\/h2>\n

For homeowners in existing homes, retrofit installations are more expensive than new construction\u2014typically about twice the cost\u2014due to logistical challenges.<\/p>\n

“When we drill a single borehole, it takes us less than a day to drill,” Yates explained, “but it takes us three to four days to do it in a residential setting, because we have to get all this stuff loaded up, drive to the house.” These mobilization costs add up quickly compared to new developments where crews can efficiently drill dozens of homes in sequence.<\/p>\n

In states like New York and Connecticut, where Dandelion offers retrofit leasing, homeowners pay $200 to $300 per month, which offset by energy savings, especially in colder climates where geothermal delivers the greatest benefits.<\/p>\n

Choosing The Right Geothermal System<\/strong><\/h2>\n

Which geothermal system to consider for your home depends on the local climate, how much land you have, and the soil on your property. Learn about the different options: closed-loop, open-loop, and hybrid systems.<\/p>\n

See how a residential geothermal system works in this video from the U.S. Department of Energy:<\/p>\n

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