Geothermal Heat Pump

Ground source heat pumps, often called geothermal, are electric appliances that provide summertime air-conditioning and wintertime heating.

Geothermal heat pumps are considered to be clean heating and cooling systems because they do not create heat, but rather they transfer renewable heat from the ground into your building. This process is powered by electricity, which can also be sourced from renewable energy.

Save money on your energy bill and improve the comfort of your home, all while reducing your greenhouse gas emissions. Scroll down to explore your options and the different applications.


What are the benefits?

  • Geothermal heat pumps are the most efficient heating and cooling system available.
  • Heat pumps filter and dehumidify air, which can improve the air quality and comfort of your home. In particular, the filtration provided by heat pump systems can significantly reduce allergens in your home, benefiting sensitive individuals.
  • Eliminating or reducing the combustion of fossil fuels in your home improves home safety.
  • Reduce your carbon footprint and dependence on imported fossil fuels. Using solar PV or other renewable electricity sources can further offset emissions from the electricity powering your heat pump.

Want to Learn More?

  • All outdoor components of a geothermal system will be buried underground, no need to worry about outdoor aesthetics.
  • Ground source heat pumps (GSHP) are not vulnerable to atmospheric conditions because the system components are not exposed to the elements and thus do not have defrost cycles like ASHP systems do.
    This inherent feature of GSHP makes them more efficient throughout the winter and quieter outdoors than air source heat pumps (ASHP).
  • Geothermal can offer a clean whole-home heating and cooling solution without requiring backup heating. Eliminate fossil fuel combustion and associated risks from your home entirely. Geothermal can also heat 40-50% of your home’s hot water at no additional operating cost with an add-on.

Need help determining the heat pump system that might be best for your home? NYSERDA’s Heat Pump Planner tool can help you learn more about heat pump technology, the types available, installation and operation costs, and questions to ask an installer.

You can download the full Heat Pump Planner [PDF] for more information about heat pumps and using the Planner, or discover the heat pump technology that might be the best for you by using the chart on the NYSERDA website, linked here.

Is this right for my home?

GSHP retrofits can work in many homes. If you answer “Yes” to any of the questions below, a geothermal system may be a good fit for you:

  • Do you heat with oil, propane or electric resistance?
  • Do you want whole-home central air conditioning and heating in one system?
  • Are you concerned about aesthetic changes to your building?
  • Do you want the most efficient, environmentally-friendly system available?
  • Is your boiler/furnace, central AC system, or existing heat pump system 15+ years old?


Plug in your address and find out if a geothermal system could be the best option for your home. NYSERDA’s GeoPossibilites tool provides a preliminary estimate of the cost to install a geothermal system, potential savings and carbon reduction.

Incentives and Rebates

Ground Source Heat Pump (GSHP) rebates average between $7,000-$17,000 for a whole-home system, for a typical home of 2,500 sq ft. Additionally, take advantage of a 26% federal tax credit. Plus, Con Ed customers within gas constrained areas can access an additional 30% discount.

See the chart below to discover the utility and state offered incentives and rebates for air source heat pump installation.

The EnergySmart Homes partner-installers will find your relevant federal and utility rebates using calculations specific to your building and the proposed equipment. Every EnergySmart Homes partner installer has the necessary accreditation, software, and experience to accurately inform you of your true bottom line (included on your proposal) and will assist you with the paperwork.

The EnergySmart Homes Team is here to help! To access the utility rebates and federal incentives you must use a Con Ed or NYSEG participating installer. To install a GSHP and access the utility rebates, call an EnergySmart Homes contractor to schedule (link to installer page) your site visit.

Financing & Loan

This document provides information regarding financing options through NYSERDA for homeowners who are looking to install heat pumps and energy efficiency upgrades in their homes. It includes information on:

  • On-Bill Recovery Loan
  • Smart Energy Loan
  • Companion Loan
  • Renewable Energy Tax Bridge Loan

It also provides information on each loan’s interest rates and the general loan approval criteria for NYSERDA loans.

Residential Loan Information

Our EnergySmart Homes Partner Contractors offer additional financing options.

Contractor Loan Information

Federal Tax Credit

Don’t forget to take your IRS tax credit for heat pump installations. ENERGY STAR air source heat pumps qualify for a $300 credit. Consult a tax professional for questions about how to take advantage of this tax credit. This chart contains information about eligibility, home improvement solutions, and incentives for the Federal Tax Credit.


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For More Information

Contact Lauren Brois

914-242-4725 x122

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