A geothermal heat pump system is a mechanical device, also known as a ground source heat pump or geoexchange system, which uses the geothermal exchange properties and the relatively constant temperature of earth formations for heating or cooling a building space.

An open-loop system using either a water well supply or return well for the disposal of used water likely requires a well construction permit issued by the local health department.  The wells must be constructed in accordance with the state well code.

Since closed-loop systems do not extract groundwater, EGLE does not have authority to regulate their installation under the state well code.  However, some local health departments do have requirements for closed-loop systems, and those individuals installing these systems need to comply with all applicable local requirements.