The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Geothermal Heat Pump Market to Triple by 2020

There has been an uptick of interest in renewable energy heating and cooling in the past year, with several U.S. states and other countries establishing favorable incentives. After a two-year slump due to the global economic downturn, Navigant Research predicts that the geothermal heat pump market (GHP) will nearly triple to $17.2 billion by 2020, which is a “slow but steady growth” for the industry, according to Navigant analyst Mackinnon Lawrence.

Find the report, Geothermal Heat Pumps, here.

Among favorable policies cropping up globally, the UK recently announced renewable heat tariffs (which were set at 18.8 pence/€0.22 for ground-source heat pumps), and a coalition has formed in Massachusetts to include renewable heating and cooling technologies in the state renewable portfolio standard (RPS).

But GHPs are still considered a technology that “falls through the cracks” in most policy scenarios, according to Lawrence. Many countries aren’t sure where GHPs fit — are they more a renewable energy or energy efficiency technology? In effect, GHPs “fall down the list behind other less-complex energy efficiency efforts,” he added. Instead of installing a GHP system, many people will focus on less-expensive fixes first, like insulation.

The upfront cost for GHP systems is another major factor that has held back the industry. While in the U.S., for example, there is a 30 percent tax credit towards a new residential system (10 percent for a commercial system), many homeowners simply cannot afford GHPs that can cost up to $25,000. And there are no major technology improvements that can be done to drive down these upfront costs, said Lawrence.

Despite these barriers, GHPs have taken off in countries like Denmark, where laws stipulate that new homes cannot be built with fossil fuel systems. And according to Chris Williams of the HeatSpring Learning Institute and member of the Coalition for Renewable Heating and Cooling in Massachusetts, GHPs can be a perfect weapon to fight rising oil prices, which heats a majority of the homes in the Northeastern U.S.

Overall, the GHP industry needs more consumer awareness. “While solar is becoming more well-known, consumers aren't sure how to access GHPs, and even regional distributors aren’t up to speed yet,” noted Lawrence. 

Read more geothermal energy news here.

Lead image: GHP, Iceland via Shutterstock

Untitled Document

Get All the Renewable Energy World News Delivered to Your Inbox - FREE!

Subscribe to Renewable Energy World Magazine and our award-winning e-Newsletter to stay up to date on current news and industry trends.

 Subscribe Now


CEO Gilles: Challenge in Geothermal is to 'Level Playing Field' with Wind, Solar

Jennifer Delony The current challenge for the geothermal energy industry is what U.S. Geothermal CEO Dennis Gilles calls “leveling th...

Top 5 Reasons To Be Optimistic About Geothermal in the US

Jennifer Delony Joe Greco, Geothermal Energy Association (GEA) board chairman and Terra-Gen Power senior vice president, outlined the...

DOE Releases Final Programmatic Environmental Impact Statement for Hawaii

Jennifer Delony DOE released a final programmatic environmental impact statement for Hawaii to provide federal, state and county gove...

The 800 Ways Taxpayer Money Supports Fossil Fuel Industries

Reed Landberg, Bloomberg As world leaders converge on New York for a United Nations gathering that’s expected to have a strong emphasis on cli...


Array Technologies Finalizes Shipments to E.ON’s Maricopa West Solar Project

Array Technologies, Inc. (ATI) has completed DuraTrack® HZ shipments to the 20 MW (ac) ...

B.C. Energy Minister to provide keynote at renewables for mines summit.

BC Minister of Energy and Mines to address the challenges of providing alternative powe...

Mining leaders seek renewables solutions at Toronto Summit

The global mining sector is facing a tough business environment with low commodity pric...

American Renewable Energy Institute Gears Up for 12th Annual Summit

"Racing Climate Change: Green Bridge with China, The Road to Paris” is the theme of th...


New Mexico Attracts Jobs and Revenues with Renewable Energy Tax Credit

New Mexico has abundant fossil fuel resources: in 2013, it ranked sixth in the nation for crude oil production, seven...

The Vice President Stole My Show (Not Really)

When I finished my Solar Power International (SPI) panel discussing what future opportunities the panelists saw in so...

The Value Of The Building

If you’re selling efficiency solutions in the built environment, you may find yourself being asked by your pros...

Sewage provides energy through processing

Many nations are investing in new technology to turn sewage waste into usable energy. Japan has recently revised its ...


As associate editor of, I coordinate and edit feature stories, contributed articles, news stories, opinion pieces and blogs. I also research and write content for and REW magazine. I manage


Volume 18, Issue 4


To register for our free
e-Newsletters, subscribe today:


Tweet the Editors! @jennrunyon



GRC Annual Meeting & GEA Geothermal Energy Expo

GRC Annual Meeting & GEA Expo:   Register Now for the 2015 GRC ...

GRC Fieldtrip - Long Valley Geology

Led by: Gene Suemnicht and Duncan Foley     &nb...

GeoPower & Heat Summit

The GeoPower & Heat Summit is the most commercial event in the geoth...


Geothermal Event - We've got an app for that!

GRC Annual Meeting & GEA Geothermal Energy Expo has gone mobile! We...

Final Program Now Available for GRC Annual Meeting & GEA Geothermal...

GRC Annual Meeting & GEA Geothermal Energy Expo - Final Program f...

GRC Annual Geothermal Photo Contest - View all the Entries

36th Annual Geothermal Photo Contest The Geothermal Resources


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now