How does Geothermal work?

A geothermal heat pump doesn't create heat by burning fuel, like a furnace does. Instead, in winter it collects the Earth's natural heat through a series of pipes, called a loop, installed below the surface of the ground or submersed in a pond or lake. Fluid circulates through the loop and carries the heat to the house. There, an electrically driven compressor and a heat exchanger concentrate the Earth's energy and release it inside the home at a higher temperature. Ductwork distributes the heat to different rooms.

In summer, the process is reversed. The underground loop draws excess heat from the house and allows it to be absorbed by the Earth. The system cools your home in the same way that a refrigerator keeps your food cool - by drawing heat from the interior, not by blowing in cold air.