Buildings are the primary users of electricity, and a considerable amount of electric energy consumed in residential and commercial buildings is for meeting thermal demands (e.g., space heating/cooling, water heating, etc.). Therefore, integrating thermal energy storage with a building’s energy system has the potential to reshape the electric load profile of the building and mitigate the mismatch between the renewable power supply and the thermal demands of buildings. A novel ground-source heat pump system (GSHP) integrated with underground thermal energy storage (UTES) has been developed to enable flexible electric demand at buildings while meeting their thermal demands with an energy-efficient GSHP system. This paper assessed the potential impacts of the proposed system on the peak electrical demand and annual electricity consumption in a typical residential building at various climate zones in the United States. The results show that by replacing the conventional HVAC system (air conditioner and natural gas furnace) with the UTES integrated GSHP system, summer peak electric demand can be reduced by 27% to 50% depending on the weather. Although the winter peak electrical demand could be increased by up to 70% if the proposed system replaces natural gas furnace, the existing electricity supply system for single-family homes in most regions of the United States have adequate capacity for the replacement. While eliminating the natural gas consumption for space heating, the proposed system consumes more electricity on an annual basis in heating-dominated regions. Still, it consumes less electricity in cooling dominated regions. The resulting variance in annual electricity consumption in various climate zones is within 15% compared with the baseline system.