The heat pump operates on the principle that heat can be transferred by a cycle of alternating vaporization and condensation, the same cycle used by refrigerators, freezers and air conditioners. When a liquid vaporizes, heat is absorbed, and when a gas condenses, heat is released. By alternately pressurizing and depressurizing a liquid with a very low boiling point (called a refrigerant), the heat pump can absorb heat from a relatively cool medium and transfer it to a warmer one.
Even though the ground water temperature may be a relatively cool 10° C (50° F), the circulating fluid can absorb some heat, and the vapor compression cycle of the heat pump can transfer it to the indoor air.
During the summer, the same fluid is circulated through the loop of piping and the heat pump's heat exchanger, but the heat pump's cycle is reversed. Instead of absorbing heat from the fluid and transferring it to the indoor air, it now absorbs heat from the indoor air and transfers it to the fluid, where it is given off to the ground or ground water. Because of the constant relatively cool temperature of the ground water, the geothermal system is actually more efficient for cooling than the typical air conditioner, which must reject heat to hot outdoor air.
The geothermal system is a highly efficient and economical year-round space conditioning system. It can save over 50% on heating costs compared with electric resistance heating (e.g. electric furnace), and up to 30% on air conditioning costs, while providing clean, safe comfort year-round.