A gas utility is picking up the upfront tab for geothermal

A gas utility in Vermont is covering the biggest upfront cost of switching to geothermal heating and cooling at a new affordable housing development. Vermont Gas (VGS) is partnering with Dandelion Energy to bring geothermal to Riggs Meadow in Hinesburg, Vermont, a project with 44 townhomes and apartments for low- and moderate-income renters and owners. Rather than the housing developers paying for the underground pipes, called ground loops, VGS will pay for and own that infrastructure itself. Dandelion will handle the system design and drilling.

Geothermal systems work by circulating fluid through pipes buried underground, where temperatures stay steady year-round. Electric heat pumps use that steady ground temperature to pull heat into buildings in winter and push heat out in summer, which makes the system efficient even through cold winters and hot summers. Four of the development's buildings, with 36 of the homes, are set to get geothermal loops under this plan.

Under VGS's broader geothermal program, called Clover Energy, the utility owns and maintains the ground loops while customers own the equipment inside their homes and pay a monthly fee to use the loops. VGS hasn't yet said what that fee will be at Riggs Meadow or what residents can expect to pay for heating and cooling. Drilling is scheduled to start in early 2027, with residents expected to move in by late 2027. For homeowners elsewhere, the model is worth watching: utility-owned ground loops could make geothermal more affordable to install, though availability depends on whether a local utility offers something similar.