Heat pumps are gaining popularity due to their energy efficiency and low carbon footprint. According to the International Energy Agency, if current sales trends continue, heat pumps will nearly double their share of heating in buildings by 2030. If you are exploring heat pump options, you have likely encountered two main types: geothermal and air source. Deciding which equipment is best for you and your home depends on various factors. Let’s explore geothermal heat pumps vs. air source heat pumps to help you make a more informed decision.

What Are Heat Pumps?

Both geothermal and air source heat pumps are highly efficient HVAC systems that heat and cool in one system by transferring heat rather than generating it. Because heat pumps are moving heat rather than creating it, they can be significantly more efficient than traditional heating or cooling systems. Traditional systems such as electric air conditioners and heaters or gas furnaces generate heat by consuming fuel, which requires a lot of energy. In contrast, a heat pump uses a small amount of energy to transfer more heat, making it up to three times more efficient.

Consider a typical electric heater. It converts electrical energy directly into heat, with a one-to-one energy conversion ratio (1 kWh of electricity = 1 kWh of heat). 

On the other hand, a heat pump can transfer 3-5 kWh of heat for every 1 kWh of electricity it consumes, thanks to the efficiency of moving heat rather than generating it. In winter, heat pumps extract heat from outside to warm your home; in summer, they reverse the process to cool it.

How Does a Geothermal Heat Pump Work?

A geothermal or ground source heat pump (GSHP) leverages the earth’s consistent underground temperature (about 45 degrees Fahrenheit) to regulate your home’s climate. A system of underground pipes, known as a ground loop, circulates a water-based solution that absorbs heat from the earth in winter and disperses heat back into the ground in summer.

How Does an Air Source Heat Pump Work?

An air source heat pump (ASHP) extracts heat from the outside air. In Indiana, despite cold temperatures, there is always some heat energy in the air the ASHP can capture and use to warm your home. In summer, the process reverses, pulling heat out of your home to cool it.

Pros and Cons of Geothermal Heat Pumps


  • Efficiency: Geothermal systems are consistently more efficient due to a constant underground temperature, particularly in extreme climates. This results in lower energy consumption and reduced heating costs.
  • Longevity: Geothermal heat pumps have a long lifespan, with underground components lasting more than 50 years and the heat pump compressor lasting around 25 years.
  • Environmental Impact: Geothermal systems have a minimal ecological footprint due to their high efficiency and low operational emissions.


  • High Upfront Costs: Initial GSHP installation costs range from $10,000 to $45,000, depending on the system’s complexity and the size of your home.
  • More Extensive Installation: The geothermal installation process requires significant excavation and plenty of space, which can be disruptive and impractical for smaller properties.

Pros and Cons of Air Source Heat Pumps


  • Lower Installation Costs: ASHPs are generally less expensive than geothermal systems, ranging from $3,500 to $20,000.
  • Flexibility: Air source heat pumps require less space, and technicians can install them almost anywhere, making them suitable for urban settings or homes with limited yard space.
  • Easier Maintenance: ASHPs are more accessible and less costly to maintain and repair, with no underground components.


  • Efficiency in Extreme Cold: ASHPs are less efficient in frigid climates as they need to work harder to extract heat from the air, potentially increasing operational costs.
  • Lifespan: Typically, ASHPs have a shorter lifespan than GSHPs at around 15-20 years. However, air source heat pumps still typically last longer than conventional systems.

Geothermal vs. Air Source Heat Pump Considerations

  • Climate: Geothermal heat pumps excel in extreme climates due to stable underground temperatures. ASHPs are effective in moderate climates but may require supplementary heating during extreme cold periods.
  • Property Size and Space: GSHPs often require significant outdoor space for ground loops, making them less suitable for smaller or narrow properties. ASHPs are more flexible and suitable for various property sizes.
  • Budget: If upfront costs are a concern, ASHPs are more affordable to install. However, GSHPs can offer more significant long-term savings due to lower operational costs.
  • Installation Timeline: ASHPs have a quicker and less invasive installation process, often taking just a few days compared to several weeks for GSHPs.
  • Long-Term Savings and Maintenance: GSHPs typically offer more significant long-term savings and require less maintenance due to their durable underground components. ASHPs, despite a shorter lifespan, are easier and cheaper to maintain and repair due to their above-ground installation.
  • Environmental Considerations: Both systems are eco-friendly, but GSHPs tend to have a lower operational carbon footprint due to higher efficiency.

Precision Comfort Systems Helps Homeowners Choose

Both geothermal and air source heat pumps are excellent choices for efficient and sustainable home heating and cooling. Your decision will hinge on climate, available space, budget, and personal preferences. By carefully evaluating these aspects, you can select the system that best meets your needs, ensuring comfort and energy savings for years. Contact Precision Comfort Systems for home heating and cooling advice tailored to your specific situation.