What is Geothermal Energy and What Should I Know?

Geothermal energy uses underground recourses to heat and cool your home or building. This page features two systems (direct well water cooling and heat pump systems) commonly found in both residential and commercial uses.

Geothermal has many benefits ranging from lower operating costs to environmentally friendly advantages. Not only does geothermal energy reduce fossil fuel emissions, but it also reduces energy usage and electricity costs.

Two Categories of Geothermal Systems in Missoula                                       

First: Direct well water cooling (No heat pump): 

  • This unit highlights geothermal use WITHOUT a heat pump and is for cooling ONLY. 
  • These systems use cool aquifer water to cool a building.
  • Often used in commercial settings.
  • Most efficient option as there is no electricity required to run a heat pump- only for the circulator pump to make the water flow.

Second: Geothermal heat pump system: 


  • Work for BOTH heating and cooling WITH a heat pump
  • More common in residential and single-family homes compared to direct well water cooling.
  • Higher efficiency compared to standard gas and electricity systems 
  • Longer payback period than direct well water cooling attributed to more electricity costs and complex well installation.


Note: This image belongs to the circuitry blueprint Depot-https://techdiagrammer.com/home-heat-pump-system-diagram

                                                                   Why Geothermal?

  • Missoula has an abundance of geothermal resources making it more efficient and cheaper to use geothermal sources than in other states


  • Missoula has over 7100 heating days and 450 cooling days making it among the nation's best states for geothermal energy. What are heating days?



  • Geothermal is much more efficient than gas powered electricity with a 30-40% efficiency improvement with cooling and a 50-70% efficiency improvement with heating.


Costs of Implementing and Using Geothermal


  • Geothermal has high upfront costs, but great long term pay-back when compared to gas and electricity costs. 

Barriers to Implementing Geothermal


  1. Residential barriers include the costs and accessibility of digging bore holes to access the ground water. 
  2. The costs of natural gas are much less than electricity costs making the heat pump system harder to break even on since many heat pumps utilize electricity to function.
  3. Lot size (Smaller lot size can have limits on open vs closed loop systems as well as limited room for boreholes).

Montana State University Case Study


Montana State University

  • Montana state has currently dug 264 bore holes allowing 8 buildings to be heated and cooled. 


  • Primarily uses a closed loop system with very few open loop wells throughout the system.


  • Findings highlighted that energy usage fell by 25% from 2007 - 2023.


  • Savings of nearly $130,000 annually and over 2 million since its implementation in 2007.


Carbondale Colorado Case Study


Carbondale CO

  • Features a closed loop system highlighting a long term pay back plan with higher upfront costs.


  • Used for both heating and cooling.


  • 73% less energy used on site.


  • $27,560 saved annually by switching from gas/electricity to geothermal closed loop system.




Dandelion Energy Podcast


  • Dandelion Energy has made geothermal accessible to homes across the east coast.


Missoula Geothermal Map

Site List:

  1. Missoula International Airport
  2. Stockman's Bank
  3. Clearwater Credit Union
  4. Providence Hospital
  5. Butterfly House
  6. Sentinel high school
  7. University of Montana
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