3rd Party Ownership of Geothermal systems
Heating and Cooling account for more than half of the energy consumed by buildings (including homes). Geothermal Heat pumps are the most efficient way to heat and cool a building. Until now the high cost of the initial installation has been a major factor in limiting the increased use of this most efficient system.
While HR 1 2025-2026 (One Big Beautiful Bill) phased out most of the incentives offered by the government for wind and solar energy, it left some support for geothermal energy in place. The bill maintains commercial geothermal tax credits of 30% through 2034 (Section 48 Investment Tax Credit). Additionally, the law creates an exemption from the longstanding IRS policy known as limited-use property doctrine and allows commercial geo systems to be leased by third parties, including leases to homeowners.
In this alternative financing option for the Ground Loop Heat Exchanger, the local utility (or other entity) installs and owns the ground loop and amortizes the cost via a surcharge on the utility bill. This eliminates the high upfront cost for the system.
Use of geothermal energy lowers the cost of heating and cooling for the end user. Because less electricity is needed to run the system, it reduces the strain on the electrical grid.
More information about 3rd Party Ownership of Geothermal systems
https://midatlanticgeothermal.com/residential/geothermal/
https://blog.suppliedenergy.com/get-a-geothermal-heat-pump-for-0-down-with-third-party-ownership
Geodelphia 