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Direct Cash Incentives for Geothermal Heating and Cooling

Direct cash incentives, such as grants and rebates, are used to fund a portion of initial equipment and installation costs—which are often high. Direct cash incentives can also be used to offset resource assessments, feasibility studies, or other pre-development costs that can be high due to resource uncertainties and exploration costs.


A grant is an award of financial assistance to a recipient to carry out a project. Alaska's Renewable Energy Grant Program has funded a feasibility study for a direct-use geothermal project. It provides assistance to utilities, independent power producers, local governments, and tribal governments for feasibility and reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible renewable energy facilities.


A rebate is money paid back to someone that has already paid for a service or product. Maryland offers rebates of up to $3,000 for residential ground source heat pumps (GSHP) and $10,000 for non-residential GSHP. Funding for the program is provided annually from the greenhouse gas emission auctions under the Regional Greenhouse Gas Initiative. Additional funding is derived from federal economic stimulus funds under the American Recovery and Reinvestment Act.

Learn about other policy options.