Geothermal heating and cooling company Dandelion Energy has announced the first-ever residential geothermal leasing program in the United States, making geothermal heating and cooling more accessible and affordable.
The new model seeks to eliminate the biggest barrier to geothermal adoption – upfront cost. Through the new model, builders can integrate geothermal systems into their communities for significantly less than traditional HVAC, reducing upfront expenses while delivering premium, high-performance homes that stand out in today’s competitive market. New homebuyers can access geothermal for as little as $10–$40 per month.
“Dandelion’s mission has always been to make geothermal heating and cooling affordable and attainable for all,” said Dan Yates, CEO of Dandelion Energy. “Our new leasing program removes the upfront cost barrier that has slowed adoption, bringing us closer to making geothermal the default choice for American homes.”
“This is a particularly meaningful moment, because it’s the first time in the United States that geothermal doesn’t cost more for a major home builder compared to gas furnaces and air conditioners,” added Kathy Hunnan, Founder and CTO of Dandelion Energy.
Driven by geothermal incentives
These savings are driven by the 30–50% federal Commercial Investment Tax Credit (ITC) for geothermal heat pumps, maintained through 2034 under H.R. 1, which also authorizes geothermal system leasing for the first time. Combined with state, local, and utility incentives, geothermal becomes the most cost-effective heating and cooling solution for new home construction.
The program will launch first for homebuilders in 16 states offering strong geothermal incentives, including Maryland and New Jersey, with additional markets to follow. Leasing will also be available to Dandelion’s retrofit customers in New York and Connecticut, with typical monthly payments of $200–$300—comparable to the costs previously available under the 25D consumer tax credit.
Dandelion’s initial program is offered in partnership with Upstream Lease by CSG, a leader in renewable energy financial products.
“We’re excited to partner with Dandelion Energy to make geothermal affordable from day one,” said Rory Gopaul, Founder & CEO of Upstream Lease. “By pairing our financing expertise with Dandelion’s innovative geothermal technology, we’re helping builders and homeowners save on energy and equipment costs faster than ever.”
Geothermal systems are the most efficient way to heat and cool a home, reducing energy bills by more than 50% on average compared to other systems. As electricity demand and costs rise, geothermal offers a low-impact, grid-friendly solution, using about 60% less electricity during peak cold days in colder climates. By harnessing the earth’s steady underground temperature through a vertical ground loop and ground-source heat pump, geothermal systems deliver consistent, year-round comfort in any weather.
Source: Dandelion Energy via PRNewswire
