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.

See Homeowner Success Stories and check out our most recent webinar recordings.

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

Significant rebates are available via your utility (ConEd or NYSEG). Additionally, take advantage of a 30% federal tax credit and up to $5,000 New York State tax credit.

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.

Download a simple PDF list of tax credits and point-of-sale rebates, newly offered through the Inflation Reduction Act (IRA).

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

All GSHP installed from 12/21/2021 onwards are eligible for a 30% tax credit. The rate will remain at this level until 2033. Consult a tax professional for questions about how to take advantage of this tax credit.

Inflation Reduction Act:
The Inflation Reduction Act (IRA) empowers American households to save thousands of dollars on the upfront costs of electric machines. In turn, those machines will save families an average of $1,800 per year on their energy bills. Learn more here.

See Rewiring America’s IRA calculator to see how much money you can get with the Inflation Reduction Act. (As of 2023, tax credits for heat pumps and other energy efficiency upgrades have gone live! Learn more about these credits on the Department of Energy’s website.)

See the chart below to discover the utility and state offered incentives and rebates for energy efficiency projects.

HVAC Comparison Calculator

ConEd offers an HVAC comparison calculator. Plug in data about your home, annual heating and cooling costs and explore the operating costs for different systems.

If you’re considering an upgrade to your current heating and cooling equipment, use the ConEd Comparison Calculator to see how installing a high-efficiency heating and cooling system could impact your costs.

*This application uses your local weather and energy rates. This is only an estimate of your actual energy use.


previous arrow
next arrow

Heat Pump Planner

Not sure what heat pump is right for your home? Check out NYSERDA’s Heat Pump Planner!

  • It’s easy: simply put in information about your home type, how heat is delivered in your home, and whether you’re looking for a whole-home or partial-home solution.
  • Once you’ve decided which heat pump is best for you and your home, contact the EnergySmart Homes team to find a local contractor and learn about incentives + financing options.
  • For PDF version of the Heat Pump Planner, click the link here.

For More Information

Contact Lauren Brois

914-242-4725 x122

Email inquires to