Open Loop vs. Closed Loop Wells Explained

Mosman Well Works • May 6, 2025

When installing a geothermal system for your water well, homeowners typically choose between open loop and closed loop systems. Both options come with unique advantages and challenges, and factors like your budget, available space, preferences, and water supply will influence the best choice for your home. Understanding the differences between these systems is key to making an informed decision.


Both systems work by using the earth’s stable underground temperature as a source of heat in the winter and a cooling sink in the summer. This natural, renewable energy source makes geothermal systems an eco-friendly and cost-effective way to regulate your home’s indoor climate. However, the setup and design can vary significantly between open loop and closed loop systems.

What Is a Closed Loop Geothermal System?

A closed loop geothermal system uses a sealed underground piping network that circulates a water-based solution to transfer heat. Since the earth’s subsurface stays at a steady 55°F year-round, the system draws heat from the ground in winter and releases heat back into the ground in summer. This design is ideal for homeowners who want a durable, low-maintenance solution without relying on a continuous water source.


There are three main types of closed loop systems:

  • Horizontal systems feature pipes laid out horizontally, requiring more yard space but offering easier access for installation and repairs.
  • Slinky systems use coiled piping within horizontal trenches, reducing the space needed compared to standard horizontal systems.
  • Vertical systems drill pipes deep into wells, typically 100–400 feet, and connect them at the bottom with a U-bend, using grout to improve thermal conductivity.

Pros and Cons of Closed Loop Systems

Closed loop systems are highly durable, low-maintenance, and can last over 50 years with little to no servicing. They are environmentally friendly, as they don’t disturb groundwater or introduce contaminants. Additionally, they work well in areas with limited space, thanks to vertical or slinky configurations.


On the downside, closed loop systems come with higher upfront costs due to extensive drilling, trenching, and equipment. Troubleshooting can also be more complex because the piping is buried underground, making repairs more challenging.

Get Professional Geothermal Advice Today

At Mosman Well Works, we specialize in helping homeowners choose and install the right geothermal system for their needs. Whether you’re considering an open loop or closed loop setup, our experienced team is here to guide you every step of the way. Contact us today for expert advice, system design, and a personalized quote to make the most of your geothermal investment!