Geothermal energy is an important renewable energy resource in Turkey. The aim of this research is to evaluate the Balcova-Narlidere geothermal district heating system from an economic perspective. The system is the largest one in Turkey in terms of heating capacity and located in Izmir. Although there are some assessments regarding energy and exergy analysis for the Balcova-Narlidere geothermal district heating system, an economic assessment was not performed, previously. The profitability of the investment is investigated by using internal rate of return method. Seven hundred and eighty different scenarios are developed in this assessment. In order to estimate the potential cash flows in the remaining project life, operating cost in 2002 is decreased and increased, alternatively, between 5% and 30% by 5% in each step, while monthly energy utilization price is changed between US$ 17 and 72 in those scenarios. The energy utilization prices are suggested according to zero IRR value for all scenarios due to the consideration of social and environmental concerns in this investment. It is found that, the proper monthly energy utilization price for a 100 in 2 household would be US$ 55.5 when the operating cost and heating capacity in 2002 were remained constant. (C) 2006 Elsevier B.V. All rights reserved.