In the cooling mode, the water circulating in the earth loop is warmer than the surrounding ground. This causes the water to release energy, in the form of heat, into the earth. The water, now cooler from traveling through the ground now flows to the heat exchanger in the heat pump. In the heat exchanger, hot refrigerant gas from the compressor releases its heat into the water. This causes the water to increase temperature, which it releases to the ground.

The refrigerant, which has released its heat energy and became a cold liquid, now travels to the heat exchanger. Here the heat pump's blower circulates warm, humid air across the cold air coil. The air is then blown through ductwork to cool the home. The refrigerant in the air coil picks up the heat energy from the air, and travels to the compressor. When the refrigerant leaves the compressor, it then flows to the earth loop heat exchanger to start the cycle again.

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