The paper presents economic justification for applicability of near-surface geothermal installations in Luga region, based on results of techno-economic calculations as well as integrated technical and economic comparison of different prediction scenarios of heat supply, both conventional and using geothermal heat pumps (GHP). Construction costs of a near-surface geothermal system can exceed the costs of central heating by 50-100 %. However, operation and maintenance (O&M) costs of heat production for geothermal systems are 50-70 % lower than for conventional sources of heating. Currently this technology is very important, it is applied in various countries (USA, Germany, Japan, China etc.), and depending on the region both near-surface and deep boreholes are being used. World practice of near-surface geothermal systems application is reviewed in the paper.