Cost of a GeoExchange system can be misunderstood by many consumers, builders, developers, etc. While it is true that they typically have a higher initial cost than conventional systems, the true cost (referred to as life-cycle cost) of geothermal systems is typically less. So, in essence, properly installed geothermal systems cost less than conventional systems, when you factor in the cost of operation, maintenance and replacement over time.

Even if you are comparing GeoExchange to a state of the art high-efficiency modulating and condensing boiler or furnace, the benefits are obvious. The boiler or furnace, using natural gas or propane, is between 90-97% efficient. Electric boilers are 100% efficient. Typical water source heat pumps can be up to 300 - 450% efficient (3.0 - 4.5 COP).

Although it is easy to see how much more efficient a GeoExchange system can be compared to a gas-fired furnace or boiler, it can be difficult to accurately determine the length of time required for financial payback. There are many factors that contribute to the efficiency and operating costs of the system. Indoor air temperature set points, size and construction of the building, insulation types, air-tightness, type of source-side geothermal heat exchanger (vertical, horizontal, or water loop), whether you're also cooling the building, and how much of the heat load is covered by the GeoExchange system. As gas and electrical rates increase the length of payback period will be shortened.