If at least a half-acre by 8-foot deep pond or lake is available, a closed loop geothermal system can be installed by laying coils of pipe in the bottom of a body of water. However, a horizontal trench will still be needed to bring the loop up to the home and close the loop. Due to the inherent advantages of water to water heat transfer, this type of geothermal system is both highly economical and efficient.
If adequate soil or clay based land is available, horizontal geothermal ground loops are typically one of the more economical choices. In these systems, several hundred feet of 5-foot to 6-foot deep trenches are dug. Piping is then laid in the trench and backfilled. A typical ground loop will need 300 to 600 feet of trench. Because of that, horizontal ground loops are most commonly used for new construction.

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When extreme climates, limited space or rocky terain is a concern, vertical geothermal ground loops are often the only viable option. In vertical loops, 150- to 300-foot deep holes are drilled and hairpin shaped loops of pipe are dropped in then grouted. Vertical loops are typically more expensive than horizontal loops, but are considerably less complicated than drilling for water.