North America Closed Loop Geothermal Heat Pump Market Trends

North America Closed Loop Geothermal Heat Pump Market Trends

The growing adoption of heat pumps that utilize stable ground or water temperatures for building heating and cooling is fuelling market expansion. This energy-efficient and eco-friendly alternative to conventional systems is driven by increasing environmental concerns and the need to reduce carbon emissions, positively influencing the industry's trajectory. Technological advancements and heightened energy efficiency concerns are contributing to the increased adoption of closed-loop geothermal heat pump systems in both residential and commercial applications.
 

The substantial increase in incentives and rebates offered by governments and utility companies is another crucial factor driving product adoption, significantly accelerating its uptake. For instance, in 2023, the Oregon Department of Energy introduced various heat pump incentives to reduce the costs of heat pumps in the region. These incentives include rebates covering up to 60 percent of the installation costs for landlords to provide heat pumps for their renters. Such incentives help to lower the initial installation expenses of geothermal heat pumps, making them more financially accessible to both homeowners and businesses.