The European Union aims to reduce Greenhouse Gas (GHG) emissions by 55% before 2030 compared to 1990 as a reference year. One of the main contributions to GHG emissions comes from the household sector. This paper shows that the household sector, when organised into a form of prosumer microgrids, including renewable sources for electric, heating and cooling energy supply, can be efficiently decarbonised. This paper investigates one hypothetical prosumer microgrid with the model RES2GEO (Renewable Energy Sources to Geothermal). The aim is to integrate a carbon-free photovoltaic electricity source and a shallow geothermal reservoir as a heat source and heat sink during the heating and cooling season. A total of four cases have been evaluated for the Zagreb City location. The results represent a balance of both thermal and electric energy flows within the microgrid, as well as thermal recuperation of the reservoir. The levelised cost of energy for all cases, based on a 20-year modelling horizon, varies between 41 and 63 EUR/MWh. On the other hand, all cases show a decrease in CO2 emissions by more than 75%, with the best case featuring a reduction of more than 85% compared to the base case, where electricity and gas for heating are supplied from the Distribution System Operator at retail prices. With the use of close integration of electricity, heating and cooling demand and supply of energy, cost-effective decarbonisation can be achieved for the household sector.