What is a closed-loop system?

The term “closed-loop” is used to describe a geothermal heat pump system that uses a continuous loop of special buried plastic pipe as a heat exchanger. The pipe is connected to the indoor heat pump to form a sealed, underground loop through which an antifreeze solution is circulated. Unlike an open-loop system that consumes water from a well, a closed-loop system recirculates its heat-transferring solution in pressurized pipe.