A geothermal heat pump is one of the most efficient ways to heat and cool your home. It uses the stable temperature underground to help keep your home comfortable year-round — often with lower energy use than traditional HVAC systems.
However, geothermal systems can be expensive to install, with costs typically ranging from $20,000 to $50,000 depending on your property and system design.
The Palmetto geothermal heat pumps offers another option. Instead of paying upfront, eligible homeowners can get a geothermal system with $0 down and one fixed monthly payment that covers installation, equipment, maintenance, and repairs during the lease term.
What's included in the lease?
Your monthly payment covers more than just the equipment. The lease is designed to help make geothermal ownership simple and predictable.
Installation
A licensed local contractor completes your geothermal installation, including the underground loop system and indoor equipment. You won't need to coordinate multiple vendors yourself.
Parts coverage
If a covered system component fails during your lease term, replacement parts are included.
Service and repairs
Labor for covered repairs and diagnostic service visits is included, so you won't receive a separate bill for eligible service.
Ongoing maintenance
Routine maintenance needed to help keep your system operating efficiently is included as part of the lease.
Warranty registration
We handle manufacturer warranty registration during installation so your equipment is properly documented.
How does geothermal installation work?
Geothermal systems are installed in phases, which may look a little different from a standard HVAC installation.
There are three key milestones:
1. Notice to Proceed (NTP)
This is the official start of your project. Once approvals are complete and everything is ready to move forward, your project receives a Notice to Proceed and installation planning begins.
2. Loop field completion
This phase includes the underground portion of your geothermal system.
Depending on your property, this may involve drilling deep boreholes or digging trenches to install the loop system. Permitting, pressure testing, and required documentation are completed during this stage.
3. System installation
Your indoor equipment is installed, tested, and commissioned. Once installation is complete, your system is ready to begin heating and cooling your home.
Your monthly billing begins after this final installation milestone is complete.
In some cases, the underground work and equipment installation happen back to back. In others, they may be separated by several weeks or months depending on contractor scheduling, permitting, or site conditions. You can track project progress in your Palmetto account.
Which geothermal systems are supported?
The lease supports ground-source (geothermal) heat pump systems in the following loop configurations:
Vertical bore systems
These systems use narrow boreholes drilled deep underground and generally require less yard space, making them a good fit for smaller properties or areas with rocky terrain.
Horizontal trench systems
These systems use underground piping installed in shallow trenches and typically require more available land.
At this time, pond and lake loop systems are not supported.
The lease supports both:
Ducted systems (forced-air heating and cooling)
Hydronic systems (such as radiant heating or fan coil systems)
How does the lease work?
Lease term
The standard lease term for geothermal systems is 10 years.
Monthly payment
Your monthly payment is fixed and includes eligible equipment, installation, maintenance, and repairs.
Depending on your agreement, you may be able to choose:
No annual payment increase
A 0.99% annual escalator
A 1.99% annual escalator
Ownership structure
This a lease, not a loan.
Palmetto owns the equipment during the lease term, while you receive the benefits of the system and covered maintenance and support.
What happens during installation?
At each project milestone, your installer submits required documentation to confirm work has been completed.
This may include:
Photos of completed work
Pressure test results
Permit documentation
System commissioning details
Equipment serial numbers for warranty registration
Your billing begins after your geothermal system has been fully installed and commissioned.
Frequently asked questions
Do I need to pay anything upfront?
No. The lease for geothermal heat pumps requires $0 down, and there is no upfront payment for covered installation.
What happens if something breaks?
Covered parts and labor are included during the lease term. If you experience an issue, contact us or your installing contractor for support.
What if drilling and installation happen months apart?
That's normal for some geothermal projects. Underground work and indoor equipment installation may happen at different times depending on scheduling and site conditions.
Your billing won't begin until the system installation is complete.
Does my property need to meet certain requirements?
Yes. Your installer will evaluate your property to determine which geothermal configuration may be suitable based on available land, terrain, and other site conditions.
Can I bundle geothermal with solar or another product?
In some cases, yes. Ask your installer about available bundling options.
What happens if I sell my home?
If your situation changes, contact us and we'll walk you through the available options.
Need help getting started?
Palmetto's geothermal heat pump leasing is available through Palmetto's installer network. Contact your installer to learn more about eligibility, pricing, and available options.
Geothermal leasing is currently only offered in New York and Iowa.