Heating application efficiency is a crucial point for saving energy and reducing greenhouse gas emissions. Today, EU legal framework conditions clearly define how heating systems should perform, how buildings should be designed in an energy efficient manner and how renewable energy sources should be used. Using heat pumps (HP) as an alternative “Renewable Energy System” could be one solution for increasing efficiency, using less energy, reducing the energy dependency and reducing greenhouse gas emissions. This scientific article will take a closer look at the different efficiency dependencies of such geothermal HP (GHP) systems for domestic buildings (small/medium HP). Manufacturers of HP appliances must document the efficiency, so called COP (Coefficient of Performance) in the EU under certain standards. In technical datasheets of HP appliances, these COP parameters give a clear indication of the performance quality of a HP device. HP efficiency (COP) and the efficiency of a working HP system can vary significantly. For this reason, an annual efficiency statistic named “Seasonal Performance Factor” (SPF) has been defined to get an overall efficiency for comparing HP Systems. With this indicator, conclusions can be made from an installation, economy, environmental, performance and a risk point of view. A technical and economic HP model shows the dependence of energy efficiency problems in HP systems. To reduce the complexity of the HP model, only the important factors for efficiency dependencies are used. Dynamic and static situations with HP´s and their efficiency are considered. With the latest data from field tests of HP Systems and the practical experience over the last 10 years, this information will be compared with one of the latest simulation programs with the help of two practical geothermal HP system calculations. With the result of the gathered empirical data, it allows for a better estimate of the HP system efficiency, their economic costs and benefits and their environmental impact.