Geothermal Heat Pump Payback

Work out how quickly a ground-source heat pump can repay itself. Enter the turnkey installation price, all rebates or tax credits, and the annual savings you expect from lower utility bills plus reduced maintenance to see the breakeven timeline in years.

Total turnkey cost including drilling, equipment, and labor.
Sum of tax credits, rebates, or grants that reduce the upfront spend.
Yearly reduction in heating/cooling energy bills compared with the prior system.
Annual maintenance savings (e.g., fewer filter changes or service visits).

Examples

  • $28,000 installation − $6,000 incentives with $2,500 energy and $400 maintenance savings ⇒ 7.59-year payback
  • $35,000 installation − $9,000 incentives with $3,100 energy and $500 maintenance savings ⇒ 7.22-year payback

FAQ

Does this include tax credits?

Yes. Enter all tax credits, rebates, and grants in the Incentives field so they are subtracted from the upfront cost.

Can I use negative incentives?

If additional site work increases your cost, leave incentives at zero and add the extra expense to the Installed Cost input.

What if my annual savings are uncertain?

Use conservative assumptions or run multiple scenarios with high and low savings to see how the payback period shifts.

Should I include maintenance contracts?

Yes. If you expect service agreements or filter replacements, net those costs against maintenance savings so the payback reflects real operating expenses.

Additional Information

  • Simple payback divides net upfront cost by combined annual savings; include financing charges separately if you plan to finance the project.
  • Consider adding a discount rate to evaluate net present value alongside payback for a more rigorous investment comparison.
  • Cross-link: compare renewable upgrades using the Solar Panel Savings calculator and benchmark ducted systems with the Heat Pump vs Gas Furnace Breakeven tool.

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