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Consider Policy Options for Geothermal Heating and Cooling

The fourth step in developing geothermal heating and cooling policy involves considering different types of policy options that can help expand the deployment of geothermal heating and cooling technologies. Options may be directed to both ground source heat pumps and direct-use applications depending on your area's goals, resources, and needs. Policy options include direct cash incentives; lead-by-example policies; financing; outreach, assistance, and training; regulatory policies; tax incentives; and utility mandates.

Increased Development Step 5 Implement Policies Step 4 Consider Policy Options Step 3 Evaluate Current Policy Step 2 Identify Challenges to Local Development Step 1 Assess the Local Industry and Resource Potential
Policy Options Definition Example
Direct Cash Incentives Used to fund a portion of initial equipment and installation costs, which are often high, or to offset resource assessments, feasibility studies, or other pre-development costs. Learn more.



Lead-By-Example Policies Used to increase awareness and test or demonstrate geothermal technologies. Learn more.

Attain Green-Building Certification

Meet Energy-Reduction Goals

Procure Energy-Efficient Equipment

Tax Incentives Used to offset purchasing, installation, and ownership costs. Easy to administer and do not require special funding or annual appropriations. Learn more.

Property Tax Incentives

Sales Tax Incentives

Tax Credits
Financing Allows projects to become more feasible by spreading costs over time. Learn more.


Loan Guarantees

Regulatory Provisions Used to address deployment barriers such as permitting, leasing, and access requirements. Learn more.

Delineated Resource Ownership

Single Agency Permitting

Standardized Leasing Practices

Standardized Permitting Processes

Outreach and Training Used to increase knowledge and facilitate development of geothermal heating and cooling technologies. Learn more.

Outreach and Education

Resource Assessment

Technical Assistance

Workforce Development

Utility Mandates and Standards Used to enhance local energy diversity and security by promoting economic development and mitigating climate change. Learn more.

Energy Efficiency Portfolio Standards

Geothermal Infrastructure Access

Renewables Portfolio Standards

Next, implement the policies you have chosen.