To obtain the temperature from inside the earth, a series of pipes called loops is placed horizontally or vertically. In closed-loop systems which are more common than open-loop systems, a liquid antifreeze/water solution circulates inside these loops and is used with a heat exchanger. The heat exchanger concentrates the heat and releases warm air inside the home during cool months. In the summer, the process works in reverse. A geothermal system not only provides hot air in the winter and cool air in the summer, but it is also an efficient way to heat water. The efficiency is due to the heat coming from the earth rather than being created.
Typically, ground loop designs fall into two categories, closed loop and open loop. There are three types of closed-loop geothermal heat pump systems: vertical, horizontal and pond/lake.