What are Geothermal Systems?
Geothermal energy systems use the earth’s stable underground temperature to heat and cool buildings efficiently. Instead of producing heat by burning fuel, they rely on heat pumps and underground loops to move heat in and out of buildings—reducing emissions, improving comfort, and lowering long-term energy costs.
Why Geothermal Systems?
Energy Cost Savings
Geothermal systems reduce heating and cooling costs by moving heat instead of generating it. Communities benefit from more stable long-term energy bills, lower maintenance needs, and less exposure to fuel price spikes. Over time, shared networks can make clean heating affordable at scale.
Neighborhood & Campus Friendly
Geothermal Energy Networks connect multiple buildings through underground piping, making them ideal for neighborhoods, campuses, downtowns, and mixed-use areas. They can be built in phases—starting small and expanding over time—while improving comfort and reliability for every connected building.
Cleaner Air & Lower Emissions
Most building emissions come from burning fossil fuels for heat. Geothermal replaces on-site combustion with efficient electric heat pumps, helping communities cut greenhouse gas emissions and improve local air quality. As the electricity grid becomes cleaner, geothermal becomes even cleaner too.
How it Works
Geothermal systems use the earth as a stable source and sink for heat—because underground temperatures stay much more consistent than outdoor air. Buildings use heat pumps to move thermal energy: in summer they push heat out of the building, and in winter they pull heat in. For communities, geothermal can scale beyond a single building into a district network. Instead of one centralized plant supplying heat, a “fifth-generation” system can connect many buildings so they can act as both sources and sinks—sharing heating and cooling through a network, also known as a Geothermal Energy Network (GEN).
How its Paid
The cost of building a community geothermal system depends on system size, local geology, the number of buildings connected, and the ownership/financing approach. In many places, a utility can design, build, and operate the system, and households pay through a subscription model—similar to how people pay for gas service today.A NYSERDA study found that many district energy systems include some level of public-sector involvement, ranging from partial to full ownership, depending on local goals and governance priorities
Where its Applicable
Geothermal works anywhere buildings need heating and cooling, and it becomes especially powerful when multiple buildings can share resources. Communities can look for opportunities in neighborhoods, civic buildings, commercial areas, and existing infrastructure to build a coalition and identify strong starting points. Geothermal systems can also expand beyond the ground itself—heat pumps can use ponds, lakes, rivers, or wastewateras stable thermal sources and sinks, which can create even more options for districts and towns. The most successful projects often match local opportunities (sources and users of heat) with strong community engagement and planning.