A series of pipes are initially laid beneath the ground near the home. The specific scheme and depth will depend on ambient and ground temperatures in your geographic area. A mixture of water and refrigerant will be run through these lines to absorb the ground temperature that surrounds the piping. The fluid mixture changes temperature while it is circulated through the ground before it hits the heat pump, which is located above ground.
The heat pump is one of the few external components of a geothermal heating and cooling system. The refrigerant lines are run through the heat pump, which absorbs the energy from the ground lines, and either heats up or cools down air before it is dispersed through your home's central ventilation system. If your home already has existing ducts for central air conditioning or heating, it is easy to install a geothermal heat pump to directly replace your current exterior air conditioning unit while keeping your existing air ventilation system in place.
The technology behind geothermal heating and cooling relies on the fact that temperatures below the Earth's surface remain at a relatively constant temperature throughout the year. Heat stored in the earth's ground can be extracted and used to heat your home during the colder months. During the warmer months of the year, hot air inside your home can be extracted from the heat pump and pumped back into the ground, thereby lowering your home's internal temperature.
Outside of heating and cooling a home, geothermal heating and cooling principles can also be used to provide hot water in a residential area. Heating a concentrated storage of water is much easier to do than heating a home, so these types of water heaters are often activated "on demand," so instead of storing hot water and keeping it hot, the heater is activated once the hot water faucet is turned on.