According to a new DOE report, geothermal heat pumps could revolutionize residential heating and cooling, with projected growth from 1 million to 7 million homes by 2035.
Geothermal heat pumps, an underground clean energy technology, are poised to revolutionize residential heating and cooling systems across the United States. According to a new report from the U.S. Department of Energy (DOE), these systems could serve the equivalent of seven million homes by 2035, up from just over one million today.
This dramatic expansion has the potential to transform home energy use, reduce strain on the power grid, and significantly cut carbon emissions. Unlike traditional heating and cooling systems, geothermal heat pumps leverage the Earth’s constant underground temperature of approximately 54 degrees Fahrenheit. This natural stability allows them to operate efficiently year-round, outperforming conventional air-based systems that struggle in extreme weather conditions.
The DOE’s report highlights the significant advantages of widespread geothermal heat pump adoption. These systems could reduce peak electricity demand by 12 gigawatts in summer and 40 gigawatts in winter—equivalent to the output of dozens of coal or gas power plants. This reduction could help prevent power outages during periods of high energy demand, ensuring a more reliable power grid.
Additionally, geothermal heat pumps offer substantial environmental benefits. By reducing reliance on fossil fuel-based heating and cooling systems, they could significantly lower residential carbon emissions, which account for a large portion of U.S. energy consumption. For homeowners, the long-term energy savings can offset the higher upfront costs, making these systems an increasingly attractive option for sustainable home comfort.
Despite their advantages, the widespread adoption of geothermal heat pumps faces financial challenges. A typical residential system costs approximately $19,000 after current tax incentives, which cover 30% or more of installation expenses. While federal credits help, the initial investment remains a barrier for many homeowners.

Innovative deployment strategies are emerging to address this. Thermal energy networks, where multiple buildings share heating and cooling systems, are proving to be a promising solution. Universities across the country have successfully implemented these shared networks, demonstrating their viability at larger scales.
Gas utility companies are also exploring geothermal heat pumps as a path to decarbonization. Eversource Energy recently completed the first utility-built geothermal network in Framingham, Massachusetts, marking a significant milestone for the industry. This pioneering project could inspire similar neighborhood-scale installations nationwide.
The geothermal heat pump sector is poised for significant growth. Industry experts predict that as the sector matures, costs will decrease significantly. The projected annual growth rate of 10% appears achievable, particularly when compared to historical patterns of other renewable technologies.
The American Gas Association has identified geothermal networks as a key strategy for meeting environmental goals. Member companies are exploring these systems alongside other clean energy solutions like hydrogen and renewable natural gas. Research organizations are also addressing technical challenges to support widespread adoption.
GTI Energy, in partnership with the DOE, is investigating optimal business models and regulatory frameworks. While questions remain about implementation strategies, industry momentum continues to build.
Recent interest from gas utilities could accelerate implementation beyond current projections. The environmental impact of widespread geothermal heat pump adoption would be substantial. By reducing reliance on traditional heating and cooling systems, these installations could significantly decrease residential carbon emissions, which currently represent a significant portion of U.S. energy consumption.
The technology offers compelling long-term benefits for homeowners. Despite higher upfront costs, geothermal heat pumps typically deliver substantial energy savings over their operational lifetime, making them an increasingly attractive option for sustainable home comfort.
The potential of geothermal heat pumps to transform residential energy use is undeniable. By leveraging the Earth’s natural heat, these systems offer a clean, efficient, and reliable alternative to traditional heating and cooling methods. As the industry continues to grow and innovate, the widespread adoption of this technology could play a critical role in reducing carbon emissions, enhancing grid reliability, and creating a more sustainable future for millions of American homes.
In addition to their environmental and economic benefits, geothermal heat pumps also contribute to energy independence. By reducing reliance on fossil fuels and centralized power grids, these systems empower homeowners and communities to take control of their energy needs. This decentralized approach aligns with broader trends in renewable energy and sustainability, where local solutions are increasingly seen as key to addressing global challenges.
As the technology evolves, ongoing research and development will address the remaining barriers to adoption. Innovations in drilling techniques, system design, and materials could further reduce costs and improve performance. Policymakers and industry leaders must also collaborate to create supportive regulatory frameworks and financial incentives encouraging widespread adoption.
The transition to geothermal heat pumps represents a significant opportunity to rethink home heating and cooling. By embracing this clean energy technology, the environmental impact will be minimized, energy security will be enhanced, and a more sustainable future for generations will be secured. The journey toward widespread adoption may have challenges, but the potential rewards make it a path worth pursuing.