Geothermal heat pumps (ground-source) deliver COP of 3.5 to 5.0 regardless of outdoor temperature because ground temperature stays at 50 F year-round. Installation costs $25,000 to $40,000 — significantly higher than air-source heat pump but eligible for the IRA 30 percent ITC. In cold climates (MN, ND, MI), geothermal outperforms air-source by 30 to 50 percent on heating efficiency.
Why geothermal wins cold climates
Ground temperature stays at 50F year-round at typical loop depth (4 to 8 feet for horizontal, 100 to 400 feet for vertical). The heat pump COP is therefore consistent regardless of outdoor air temperature.
Air-source heat pumps lose efficiency below 25F because they extract heat from increasingly cold outdoor air. Geothermal does not have this problem.
Install cost and payback
Vertical loop install: $30,000 to $40,000 for typical home. Horizontal loop (requires large lot): $25,000 to $32,000.
30 percent IRA ITC covers $7,500 to $12,000. State Home Energy Rebates add another $2,000 to $5,000. Net: $15,000 to $25,000 out of pocket.
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