South Dakota is known for its temperature extremes, making a reliable and efficient heating and cooling system essential. Because outdoor temperatures regularly plunge well below zero, heating costs can account for more than 50% of your energy bills. In the summer, warm afternoons and high humidity make air conditioning necessary to maintain indoor comfort. Choosing a high-efficiency system can significantly reduce utility bills year-round. Geothermal heating and cooling is one of the most energy-efficient options available. At Waterbury Heating & Cooling, Inc. in Sioux Falls, SD, we provide expert geothermal HVAC service. A geothermal system can help improve comfort year-round while keeping energy bills under control.
What Is Geothermal Heating and Cooling, and How Does It Work?
Geothermal heating and cooling uses heat pump technology to move thermal energy from one place to another. In subzero temperatures, even a cold-climate air-source heat pump can struggle. However, the ground is a natural insulator. At the depth at which we bury underground pipes, the temperature in winter remains around 50°F to 55°F. This allows efficient heating and cooling regardless of outside temperatures.
A geothermal heat pump system is more complex than an air-source heat pump. The components include:
- Underground loops
- Circulator pump
- Geothermal heat pump
- Indoor coils
- Ductwork
- Thermostat
A liquid in the underground loops collects or disperses heat. Most systems use a solution of water and antifreeze. A circulator pump is necessary to move the liquid through the loops.
Unlike an air-source heat pump, a geothermal heat pump is usually located inside the house. This appliance transfers thermal energy between the liquid in the underground loops and the refrigerant. As with an air-source heat pump, the refrigerant travels through a coil to transfer the heat to/from the air flowing through the air handler. The conditioned air then circulates throughout your home via the ductwork.
Types of Geothermal HVAC Systems
The two main types of geothermal systems are closed and open loop. Most geothermal systems are closed-loop, with the loops buried underground. This is often via trenches for horizontal systems. Vertical systems, which require drilling, may be an option when land is limited and the geological conditions permit. If you have a sizable body of water, installers can place pipes underwater.
An open-loop system might be an option for properties with high-capacity well water. However, this type of system not common for homes. It requires extra permit approval due to its potential impact on the environment.
Pros of Geothermal HVAC
The biggest pro of a geothermal heating and cooling system is the lower energy bills you’ll enjoy every month. Depending on the age and type of heating system you have now, you could save up to 70% on your heating bill. You could potentially see up to 50% savings on summer cooling energy use.
While federal incentives expired in December 2025, you may still qualify for local and statewide incentives. We can help you find rebates through your local utility company, rural electric co-op, or other programs. We offer financing on approved credit, and you might qualify for other low-interest loans.
You may also benefit when it’s time to sell your house. A geothermal HVAC system could increase your home’s value and makes it more attractive to potential buyers.
Geothermal systems also have an extended lifespan. A heat pump usually lasts around 20 years with proper maintenance. The underground loops, which account for a significant share of the up-front cost, can last up to 50 years. This means you can go a much longer time before you have to worry about replacing your HVAC system.
Cons of Geothermal HVAC
The biggest drawback to installing a geothermal system is the initial cost. This can be three to five times that of a conventional furnace and air conditioner. Much of this cost is for the drilling or trenching required for the underground loops. It can take one to three weeks to install a geothermal system for the first time. This, of course, drives up labor costs in addition to the higher prices of the specialized components. Because of the digging, you’ll also experience greater disruption to your household.
Rely on Waterbury Heating & Cooling, Inc. for All Your Heating and Cooling Needs
At Waterbury Heating & Cooling, Inc., we have experience installing and repairing geothermal heating and cooling systems. We also work with all types of heating and cooling systems, including air-source heat pumps, furnaces, boilers, central air conditioners, and ductless systems. If your new system requires electrical upgrades, we can do that, too.
Contact Waterbury Heating & Cooling, Inc. today to find out more about installing a geothermal heating and cooling system for your home in Sioux Fallsor the surrounding area.
