A low headroom confined space drilling system is disclosed, comprising a low headroom drilling apparatus, a drilling fluid supply system, a drilling fluid collection system, and a drilling fluid recycling apparatus for supplying a recycled drilling fluid to the drilling apparatus. A method of installing a geoexchange borehole in an interior space of a building is also disclosed, comprising installing a borehole access chamber in a floor slab of a building, positioning a low headroom floor mounted rotary drilling apparatus over the borehole access chamber, providing a pressurized drilling fluid to the drill rod string and powering a rotary downhole drilling device attached to the drill rod string to advance the borehole to a desired depth, recovering a drilling fluid and drill cuttings from the borehole, removing drill cuttings from the recovered drilling fluid using the drilling fluid recycling apparatus and returning a recycled drilling fluid to the drilling apparatus.