Geothermal Heating vs. Air Source Heat Pump: Which System is Better?

January 21, 2026

Geothermal or Heat Pump? What is the right HVAC system for your home in Toledo, OH?

The world of heating and cooling is one that is filled with choices in terms of the type of system that is going to be operating. As one of the best HVAC companies in Toledo, we are often asked about heat pumps and geothermal installations, as they are very much related. Well, in this blog, we are going to take a look at the pros and the cons of geothermal and heat pump systems and help you figure out what the best fit for your home might be.

 

Geothermal Heat Pumps

Geothermal Heat Pumps are one of the most efficient heating and cooling systems on the market. The system uses Earth’s stable underground temperature to heat or cool liquid circulating in an underground loop. In the summer, the warm interior air transfers heat to the liquid loop, and the Earth acts as a heat sink, removing it from the home. In winter, the Earth acts as a heat source, warming the liquid and allowing the heat pump to blow in heated air into the home.

 

Pros

  • Geothermal units have some of the most efficient ratings on the market, especially when paired with a high-efficiency heat pump. For most users, they will see their utility bills drop significantly.
  • In general, geothermal HVAC systems will last longer than comparable systems. Ground loops will last over 50 years if properly maintained, while the heat pump should last between 15 and 20 years.
  • These systems are quiet as there is no noisy outdoor fan unit or external compressor.

 

Cons

  • Geothermal heating and cooling systems are not cheap and are at the higher end due to the installation costs associated with the ground loops. If you are installing horizontal loops, the cost will be slightly lower, since trenching is cheaper than drilling in most locations.
  • As these units require exterior drilling or trenching, you do need significant space on your property to allow for this work happen, and we generally are not able to retrofit an existing downtown home due to these constraints. 

 

Air Source Heat Pumps

Heat pumps are an efficient HVAC system that moves heat from one place in your home to another, rather than generating heat like you do with a traditional furnace. Using the refrigeration cycle, heat pumps transfer heat from the outdoors in winter and move heat from indoors to the outdoors during the summer. It is a combination furnace and air conditioner and can deliver year-round comfort without the need for separate heating and AC units.

 

Pros

  • Heat pumps are an efficient and cost-effective option for replacing an existing HVAC system and can replace both your air conditioner and furnace.
  • These systems are simple to install and will cost pennies on the dollar compared to a geothermal installation.
  • Heat pumps are ideal for moderate climates and can provide ample power to heat and cool a typical residential home without the need for complex dampers or additional ductwork.

 

Cons

  • Efficiency starts to drop as the temperature approaches freezing, and most units struggle at around 15 degrees or lower. Many clients will back up their heat pump on frigid days with an electric furnace or a wood stove. 
  • These units are not going to last for decades, but with proper annual maintenance and inspections, you can expect to get around 15 years out of your heat pump, as it will need to work a little harder without the geothermal system.

 

What system is best for your situation?

Naturally, this is going to depend on your specific home and your plans, but here at Fry, we can help guide you through the process and ensure that you are getting the right system for your needs.

 

If you are thinking of staying in your home for decades and have the suitable land to accommodate a geothermal system, this is the best investment you can make for your home. You will be able to operate in any climate and not require an additional heating source during those freezing nights we can get here in Toledo, OH. You will also slowly recoup your investment through lower utility bills over time. For instance, some clients pay as little as $50 per month to heat and cool their home with a geothermal system.

 

If you are looking for a more budget-friendly solution that is going to air condition and heat your home, then a heat pump might be the right fit for your space. However, we should warn you that if you are buying a heat pump in Ohio or Michigan, you may need to purchase an additional heating source for winter nights, as heat pumps struggle below 15 degrees.

 

Whether you go with a geothermal unit or a heat pump, the team at Fry is here to help. Call us today and see why Fry is the best residential HVAC company firsthand when you need to replace your existing HVAC system with a heat pump or geothermal system.


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