Americans everywhere are feeling it: not only the pinch at the pump, but also the strain of monthly utility bills. That's a big reason why more and more homeowners are turning to geothermal systems as a means of reducing the high cost of their energy bills.

With 70 percent of a home's total energy bill resulting from the costs of heating, cooling and hot water, the use of geothermal energy not only increases the energy efficiency of a home, but also significantly reduces energy bills. The savings and return on investment (ROI) accrued over the lifetime of a geothermal system are attractive to homeowners looking to get ahead of rising energy costs, ease the financial pinch associated with routine maintenance and upkeep of their home and, just as importantly, simultaneously take an environmental stand by reducing their carbon footprint.

Interesting Geothermal Facts

The United States Department of Energy and Environmental Protection Agency have declared geothermal the most environmentally friendly, cost-effective and energy-efficient heating and cooling technology available.

Geothermal systems use the solar energy that is stored year-round just beneath the earth's surface ― energy that is free, unlimited, 100 percent renewable and that increases the energy efficiency of heating, cooling and hot water systems in a home in a proven, cost-effective way while emitting absolutely no carbon dioxide, carbon monoxide or other harmful greenhouse gases.

The system operates by transferring energy through an underground earth loop that is connected to a geothermal heat pump inside the home. In the winter, the system absorbs heat from the ground and transfers it to the home. In summer, the process reverses, collecting heat from the home and transferring it to the ground.

Heat can be used to generate hot water, thus reducing the cost of hot water by up to 30 percent annually.

A geothermal system produces the greatest efficiency at the lowest overall operating cost. In fact, for every dollar spent on electricity to operate the heat pump, homeowners obtain $5 worth of heat and savings up to 70 percent on cooling, therefore making geothermal systems twice as efficient as the most advanced traditional air conditioning systems and five times more efficient than traditional furnaces.

Many states and utility companies offer tax benefits or rebates, and, in some cases, homeowners can secure higher prices when it's time to sell their homes because of the advantages a geothermal system offers.

In terms of reducing the carbon footprint, a geothermal system in a 2,500-square-foot home saves the electric utility company more than nine tons of coal a year. Plus, for every 100,000 residential geothermal units installed, foreign oil consumption is reduced by 2.15 million barrels annually, and is equivalent to planting 100,000 acres of trees or permanently removing 200,000 cars from the road.

These systems can be easily installed in any home — new or old, large or small — and contribute to the overall comfort of a home by improving indoor air quality and producing less noise.