Does a geothermal system heat and cool?

One thing that makes a geothermal heat pump so versatile is its ability to be a heating and cooling system in one. With a simple flick of a switch on your indoor thermostat, you can change from one mode to another. In the cooling mode, a geothermal heat pump takes heat from indoors and transfers it to the cooler earth through either groundwater or an underground earth loop system. In the heating mode, the process is reversed.