Geothermal heat pump systems use the earth as a heat source and heat sink. They work by transferring heat from the building to the ground in the summer and from the ground to the building in the winter. This allows geothermal systems to lower energy costs by 30-60% and reduce greenhouse gas emissions by 40-70% compared to traditional HVAC systems. Geothermal systems have higher upfront installation costs but paybacks of 5-12 years due to long term energy savings and tax credits.