What does a Geothermal heating and cooling do? (I appreciate it if you could type the answer) Solution Geothermal heating heats the system by transferring heat from the ground to the system. Geothermal cooling cools the system by transferring heat from the system to the ground. Underground temperatures are constant ( do not vary much) with the seasons. Geothermal works on the principle that the ground beneath is warmer then the outside air in the winter and cooler than the outside air in the summer. Inserting some mechanism the heat can be transferred to and from the home..