Residential geothermal giant Dandelion Energy and utility Vermont Gas (VGS) have announced what they call a “first-of-its-kind” partnership: The power couple is collaborating on geothermal systems to heat and cool a new affordable housing development in Vermont.
The details: The Riggs Meadow project will include 44 units spread across four buildings, each of which will hook up to a closed-loop geothermal system. How it works: A heat pump inside the building will connect to water-filled pipes that run underground, where they harness year-round moderate temps to pull or dump heat. Drilling is slated to kick off early next year, and the plan is for residents to arrive in late 2027.
The funding: VGS is covering the upfront costs for geothermal installation by tapping into its budget earmarked for climate-friendly, innovative projects—rather than securing funding via a traditional rate case, VGS President and CEO Neale Lunderville told Energy Central over email. He said the project fits into the company’s “broader effort to develop new thermal energy services.”
“Our utility will own the underground infrastructure and absorb upfront investment, allowing the housing provider and its residents to benefit from geothermal without carrying all the initial cost themselves,” Lunderville said. “The project will give us real-world information about installation costs, operations, and customer economics that can inform what a scalable long-term model could look like.”
The benefits: These geothermal systems will bring efficient, affordable heating and cooling to a region that faces brutal winters—and largely depends on increasingly pricey heating oil.
“Geothermal is a real star in the Northeast,” Dan Yates, CEO of Dandelion Energy, told us. “It solves so many problems, and it's affordable…in new home construction, it is the hands-down winner.”
Plus, this infrastructure is designed to last for decades. If utilities add the geothermal equipment costs to their rate bases, Yates noted, they can charge customers minimal amounts over time. And for ratepayers, these fees “will be more than covered by the energy savings of the geothermal system,” he said.
What’s next: Both companies are thinking bigger. VGS hopes to apply the lessons learned from Riggs Meadow in other Vermont communities, where it will harness its existing relationships with developers and customers. Meanwhile, Dandelion is in talks with several utilities, Yates told us, who are "enthusiastic" about pursuing similar projects—once they work through the logistics with their regulators.
The takeaway: Geothermal heating and cooling could help utilities adapt in states where regulators are steering away from gas. This transition is driving companies around the country to pilot neighborhood-scale geothermal systems, too.
“This is a really interesting way for gas utilities who are facing electrification pressure to lean into it—as opposed to having to fight it—and to be able to profit from it,” Yates said.