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Does Geothermal Increase Your Home's Value?

Sustainable Living Bryson Buehrer September 03 5 minutes reading time

Geothermal heat pumps are reliable, extraordinarily efficient, environmentally friendly, and offer a comfortable home all year round. Those living in the house feel these benefits, but what about buyers and sellers? Does a geothermal system raise the market value of your home?

If you're considering installing a geothermal system and still want to have the freedom of moving homes in the future, you'll need to understand why modern home buyers will invest in a house with geothermal.

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How Geothermal Impacts Home Value

What Do Buyers Want?

The home buying process is so complicated and often drawn-out, and buyers typically want the smallest amount of ongoing maintenance cost (unless it's a fixer-upper, of course). Recently updated floors, appliances, or tile work can be so attractive to buyers when selling a home. Simplicity is a powerful selling point and, with geothermal, simplicity is the name of the game. A geo system offers this value in two ways - by being extremely compact and delivering significant savings. Since the unit handles heating, cooling, and hot water, homeowners can worry less about keeping track and maintaining three separate units. Instead, they have a single, multi-function package that can last well over 25 years!

The savings are the second piece to the puzzle, with the average geothermal owner saving 30%-70% on their annual heating and cooling costs upon installation of the system. If the typical U.S. family spends $2,060 a year on their heating, cooling, and hot water bills, then a Hydron Module homeowner could see up to $1,442 in savings per year. Studies show that for every $1 decrease in annual utility bills, a home's value increases by $20. So, for the average American homeowner, a Hydron Module geothermal unit can increase the value of their home by $28,840 in the current market. The increase in home value, coupled with the real-time savings and up-front financial incentives, make geothermal a lucrative option for the discerning homeowner.

The Green Home Movement

With the influx of media coverage regarding green living and sustainability, the consumer is becoming more and more mindful of their living spaces impact the environment. In a study done by the National Association of Home Builders (NAHB), at least a third of single and multifamily home builders surveyed noted that green building accounts for over 60% of their portfolio. Therefore, almost 18% of new-construction homes are classified as a "green building." For those that want to take it even further, PV solar power paired with a geothermal unit makes achieving net-zero quite simple

This trend is not specific to new construction, though! In a report by RealEstate.com, they found that homes with energy-efficient features sold for as much as 40% more than similarly sized homes in the local market. If we use the calculation above for a $200,000 home, the Hydron Module system in and of itself accounted for a 14.4% increase in home value based on savings.

Ask A Realtor

Even if you're not looking to sell your house today, you may be wanting to install a geothermal system for its value-boosting benefits down the road. Finding an area where geothermal is commonly installed may be hard. As such, your best bet is to talk to a local realtor with experience in different home sizes and types. 

They'll be able to help you find "comps", or comparable listings, to get an accurate reading of where your house should sit in market value. If there is a similar home with a geothermal system already installed, you're in luck! If not, use the non-geo value of your home, get a quote from the manufacturer or local installer to identify your savings potential, and do the math! 

For more information on the geothermal benefits specific to you, talk to an expert and learn more about geothermal's costs, savings, and more!

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Bryson Buehrer


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