For better understanding of the working of a geothermal heating system, first let's discuss its main components. In this heating system, there are three primary parts, namely, a geothermal heat pump, ground loop system, and a distribution system. The heat pump is installed inside the house or property, while the ground loops or pipes are configured under the Earth's crust at a specific depth. The depth of the piping depends upon the potency and degree of availability of geothermal heat in the particular area.