Geothermal Heating & Cooling
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Geothermal systems use the relatively constant temperatures (40-70 degrees Fahrenheit) found in the earth’s subsurface to warm indoor air in winter and cool it in the summer. These systems offer an efficient and low-carbon option to heat and cool homes, businesses, and even entire communities and campuses.
Geothermal heat pumps provide heating and cooling using the ground as a heat sink, absorbing excess heat when the aboveground temperatures are warmer, and as a heat source when aboveground temperatures are cooler. While geothermal heat pump systems are typically more expensive than air-source systems, the additional costs are often returned with energy savings.
Benefits of Geothermal:
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Clean: Geothermal represents an emissions-free energy source
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Reliable: Geothermal produces electricity consistently and can run essentially 24 hours per day/7 days per week, regardless of weather conditions.
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Efficient: Geothermal heat pumps can reduce energy consumption up to 44% compared to air-source heat pumps and 72% compared to standard air-conditioning equipment.
In 2024, Maryland’s General Assembly enacted the Working for Accessible Renewable Maryland Thermal Heat Act (
WARMTH Act) - one of the country’s first networked geothermal pilot programs.
The bill requires Maryland’s gas utilities that serve at least 75,000 customers in their distribution territory to develop a plan to pilot a networked geothermal system. Networked geothermal projects are closed loop underground piping infrastructure systems that create a network of customers with thermal energy for heating and cooling through noncombusting electric heat pumps.
Under the two-year pilot program, residents in the geothermal loop will be eligible to have electric appliances for heating, cooling, cooking, clothes drying and other water heating installed in their homes. Both
BGE and Washington Gas have indicated intent to develop networked geothermal pilots. Pilot project updates filed with the Maryland Public Service Commission can be found under
Case No. 9749. Questions about the WARMTH Act may be sent to
[email protected].
Maryland’s building owners can tap into a range of state, federal, utility, and local incentives to help defray the costs of geothermal systems.
The Maryland Clean Buildings Hub (the Hub) is committed to help building owners and operators understand the range of incentives for which they may qualify.
State:
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Maryland Clean Energy Capital (MCAP): Serving as a long-term financing solution for funding large projects, Maryland Clean Energy Capital (MCAP) offers clean energy and efficiency financing to government, institutions, and nonprofit organizations.
Federal:
Local:
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Baltimore County Energy Conservation Devices Tax Credit: Offers assistance to single and multi-family residential property owners who utilize solar or geothermal devices that meet national safety and performance standards to heat, cool and supply electricity and to provide hot water for use in the structure.
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Harford County Solar & Geothermal Tax Credit: Provide a 20% tax credit for a maximum of 20 years, on county property taxes for individuals who are over 65 years of age, have a dwelling with an assessed value of $600,000 or less, and who either own and have lived in the dwelling for at least 35 years or are a retiree or surviving spouse of a retiree of the United States’ Uniformed Services who has not remarried.
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Montgomery County Green Bank C-PACE Program: Authorizes private capital providers to provide commercial property owners with financing for qualifying projects and to collect the repayment through annual or semi-annual surcharges on the property’s tax bill.
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Prince George's County C-PACE: Assists commercial property owners in accessing financing up to 20% of the appraised value to make qualifying energy efficiency and clean energy improvements to commercial properties with loans that are repaid through an annual surcharge on the owner’s property tax bill.
Utility Incentives:
The Hub invites you to explore the materials below to help guide your next steps. Use these resources to help move your building decarbonization project forward with greater confidence.
