Vermont Gas Utility Covers Upfront Geothermal Costs for Affordable Housing

Geothermal’s upfront cost can be a dealbreaker for affordable housing. A Vermont gas utility is helping get past that hurdle by paying for the underground infrastructure at a new development.

Vermont Gas (VGS) and Dandelion Energy are bringing geothermal heating and cooling to Riggs Meadow in Hinesburg, Vermont. The development will include 44 townhomes and apartments for low- and moderate-income renters and owners.

VGS will pay upfront for and own the underground pipes, known as ground loops. That takes a substantial installation expense off the affordable housing developers’ plate. Dandelion will handle the geothermal work, including system design and drilling.

Champlain Housing Trust and Evernorth, Riggs Meadow’s affordable housing developers, explored heating and cooling options with VGS before bringing Dandelion into the project.

In its April announcement, VGS said geothermal would serve four multifamily buildings containing 36 of the development’s homes. Each building would have its own ground loop.

Here’s how it works: Electric ground-source heat pumps use fluid circulating through underground pipes to move heat between the ground and the buildings. In winter, they bring heat from the ground indoors. In summer, they send heat from the homes underground. Temperatures below ground stay relatively steady, helping the system work efficiently through Vermont’s cold winters and hot summers.

The interesting part is who’s picking up the upfront tab. Developers would typically have to find the money for that underground infrastructure themselves. In this case, VGS is taking on the expense, making geothermal easier to include in affordable housing while giving the gas utility a way to offer all-electric heating and cooling.

“This partnership with utilities like VGS helps us expand geothermal access and continues to help us make this a standard, mainstream solution for developers and builders,” said Dan Yates, CEO of Dandelion Energy. “Utility-owned ground loops are a practical, immediate solution to decarbonize housing. We are proud to support and validate this model that aligns utility infrastructure investment with equitable, clean energy access.”

Under VGS’s broader geothermal offering through Clover Energy, the utility owns and maintains the underground infrastructure. Customers own the equipment inside the buildings and pay a monthly fee to use the ground loops, but what that fee will be at Riggs Meadow or how much residents can expect to pay for heating and cooling hasn’t yet been disclosed.

“Geothermal is one of the best solutions we have to make cost-effective, renewable heating and cooling options accessible to more Vermonters,” said Neale Lunderville, president & CEO of VGS. “We are thrilled to partner with Dandelion Energy to demonstrate ways geothermal can be scaled to meet community needs. As Vermont looks to rapidly build housing to meet demand, our teams are eager to incorporate geothermal into our product portfolio to give more choices to homebuilders and customers.”

Drilling is scheduled to begin in early 2027, and residents are expected to move into the homes in late 2027.

Read more: EIA: 83 GW of renewables and storage coming in 12 months as fossil fuel capacity to fall

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