
View the full “Geothermal Solutions” presentation from our Heat Pump Technical Training Day here.
As Canada continues to shift towards renewable energy and a decarbonized future, heat pumps are emerging as a game-changing technology that can help alleviate stress on our energy grid. However, much of the positive and constructive discussion around heat pumps has focused on air-source heat pumps, while ground-source (geothermal) heat pumps are often positioned as an alternative solution. I strongly disagree with this perspective.
With their ability to provide efficient heating and cooling while consuming less electricity, geothermal systems have and will continue to play a critical role in enhancing the resilience and sustainability of Canada’s energy infrastructure. Geothermal heat pumps are also not new. The first geothermal heat pumps were installed in Ontario in the late 70s and, to this day, major developers and homeowners across the country are installing this tried-and-true technology.
An issue we often focus too much on is the energy savings of a geothermal heat pump. Many times, discussions about geothermal systems center on their ability to save 50 or even 60 per cent on building owners’ bills. While this is great, should it be our main focus? What does it mean for the electrical grid and power stability in your neighbourhood when someone installs a geothermal heat pump, or better yet, when a developer decides to install 50 or 100 of them?
The facts show that every time we can use a ground source heat pump (GSHP), we will not only save money as the end user, but we will also have a massive net positive impact on the grid. This is something that no other residential technology can currently do while meeting the heating, cooling, domestic hot water, and hydronic heating needs of homes and commercial buildings in any market in Canada.
Stable heat production
Unlike traditional HVAC systems, geothermal heat pumps leverage the stable temperatures of the earth to transfer heat in or out of buildings. This method is remarkably efficient because it takes advantage of the natural thermal energy stored in the ground, which means the heat pump only requires a small amount of electricity to move this energy. Because of this, geothermal systems can achieve efficiencies of 300 to 500 per cent, meaning they deliver three to five times more energy than they consume in electricity. This translates into significantly lower power consumption, benefiting both homeowners and the grid.
Data from a recent sampling of over 100 running five-ton geothermal heat pump units shows just how impactful this technology can be for electrical utilities in terms of grid capacity. The data logging equipment on these units collects over 100 data points every 10 seconds in real time, including entering and leaving water temperatures, flow rates, compressor status, power consumption, and system pressures.
This comprehensive data allows utilities and technicians to monitor real-time performance, identify inefficiencies, and optimize the overall system operation, ultimately enhancing grid stability and efficiency. With this level of detailed monitoring, we don’t have to rely solely on ARI data to make conclusions; instead, we have real-time insights that offer a far more accurate understanding of system performance. It also allows us to make some interesting findings.
Performance results
On average, each five-ton GSHP installed in Ontario using this data reduced peak cooling demand by 3.75 kW, which equates to 0.75 kW per ton. The average energy efficiency ratio (EER) of these GSHP units ranged between 44 and 48, with the majority falling within one Sigma of this range, meaning two-thirds of the units showed similar results, which indicates consistent performance. The average power consumption of the geothermal heat pumps was just 0.28 kW, with some units consuming as little as 0.10 kW (100 watts). This data was gathered through 10-second sampling across 100-plus data points.

The impact of these savings is substantial. Each five-ton geothermal unit saves 3.75 kW in peak demand, which translates to significant cost savings in incremental grid capital investment, approximately $6,800 for wind generation and $64,000 for hydroelectric generation. Building new grid capacity in Ontario is expensive, and geothermal systems help lower costs by reducing peak demand, ultimately benefiting both utilities and consumers.
For Canadians, geothermal heat pumps not only reduce energy bills but also help to stabilize the grid during peak usage periods. During cold winters or hot summers, traditional electric heating and cooling systems can put pressure on the grid, leading to higher energy costs and the risk of blackouts. This was recently demonstrated in Western Canada. I am not saying one technology is the solution, but we can not also treat all technologies the same. If a particular piece of technology has a core advantage to a utility and developers building homes, we need to spend more time thinking about it and how we can enhance adoption.
The need for effective load management and peak reduction has never been more apparent, and geothermal systems offer a viable solution to mitigate such risks. Like all heat pumps, geothermal heat pumps contribute to reducing greenhouse gas emissions. All heat pumps are great solutions, and the best choice may not always be geothermal.
In some cases, an air-to-water heat pump that can heat, cool, and provide domestic hot water can effectively replace your boiler. Other times, an air-to-air heat pump will be more suitable, and in certain situations, a dual-source heat pump using both gas and a heat pump may be the right solution. This is without even considering gas absorption heat pumps that, yes, still use gas, but lower the gas usage. Technology is rapidly evolving, and we need to make informed decisions by looking at the big picture as we, the taxpayers, invest in our future, and be sure that we are not just chasing trends.
By replacing conventional fossil-fuel-based heating systems with geothermal technology, homeowners and businesses can drastically cut their carbon footprints. This not only supports Canada’s climate goals but also helps pave the way for a cleaner, more sustainable energy future.
Geothermal heat pumps are more than just a solution for efficient heating and cooling, they are a strategic asset that empowers the grid and supports Canada’s energy transition. By investing in geothermal technology, we can lower our collective energy consumption, support grid stability, and make meaningful strides toward a cleaner environment.