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Vermont Gas to Own the Geothermal Systems for a 44-Home Affordable Housing Development

Dandelion Energy says it is the first time a utility has partnered with new construction and bought the ground loops, with drilling set to begin in 2027.

A natural gas utility in Vermont is getting into geothermal heating. Vermont Gas Services and residential geothermal company Dandelion Energy have partnered on a 44-unit, all-electric affordable housing development in Hinesburg, Vermont, according to Engineering News-Record, with the utility owning and maintaining the underground systems.

"This is the first time that a utility has partnered with new construction and purchased the ground loops." — Dan Yates, CEO, Dandelion Energy

How it works

Geothermal heat pumps use the steady temperature underground to heat and cool buildings. In this project the geothermal system will supply all of the community's heating and cooling. Each building gets its own ground loops rather than one networked system, so neighbors are not tied together.

  • Drilling is scheduled to begin in early 2027, with residents moving in later that year
  • Residents will pay a monthly fee of $25 to $35 for the geothermal service and will have no gas bills, ENR reports
  • Project costs were not published

Why it matters

Upfront cost is a common barrier to geothermal heating. When a utility owns the equipment and charges a fee, in the way it already runs gas lines, builders avoid that expense and residents can get efficient heating without buying the system. Affordable housing is a place where lower, predictable energy bills matter most.

Good News Network, which highlighted the project in November, also pointed to a U.S. Department of Energy case study of a New York apartment complex where geothermal heat pumps cut energy costs by about 40 percent.

What to watch

This is an announced project, not a finished one, and real-world costs and savings will only be known once people live there. If it works, other utilities may follow the model.

More Vermont Gas Services news →

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