Circulation: The above-ground heat pump moves fluid through a series of buried pipes or ground loops.
Heat absorption: As the fluid passes through the loop, it absorbs heat from the soil, rock or ground water around it.
Heat exchange and use: The heated fluid returns to the home, using a heat exchanger to transfer heat into the home’s existing air handling, distribution and ventilation system.
Recirculation: The fluid then returns at a lower temperature to the ground loop to be heated again.

Geothermal heating and cooling systems are environmentally friendly and use a natural resource – the heat from the earth underneath your home – to keep your indoor temperature comfortable year-round. The cost of a geothermal heat pump often is higher than other heating and cooling systems, but in the long run can save money on energy bills.
The federal government offers rebates and tax credits to homes that replace a traditional HVAC system with a geothermal unit. But to qualify, the geothermal pump installed must be an Energy Star rated system.