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Thank you for taking the time to explain this, slaghunter!slaghunter said:A geo thermal system using wells do not use pipes for the heat transfer as the horizontal systems do. They actually pump ground water to the heat exchanger and then back in the 2nd well. The wells do not have to be any certain depth they just need to be able to produce a sufficient amount of water. The amount of water needed will be dependent on the size of the heating system installed in the house which of course is dependent on the square footage being heated\cooled.
A geo-thermal system works just like a traditional heat pump. The only real difference is instead of using outside air it uses water. When heating the heat pump draws heat out of the water using freon and a compresser. The water that is now colder is returned to the ground via the 2nd well. When cooling the principle is the same. Check out how a heat pump works for a better understanding.
They also make a unit called a super de-heater that will draw heat out of the warmer water during the cooling cycle that then goes through a liquid to liquid heat exchanger to preheat the water going to the water heater saving even more $$$
I have never installed one myself but a friend of mine had one installed. The whole idea intrigues me so I have been researching them and got as much info from them as i could. Hope this will give you a better understanding.
The two wells was a surprise and makes this more complicated than I realized. I will read more on the heat pump as you suggest.