Vermont Gas to Cover Upfront Costs for Geothermal Infrastructure at Affordable Housing Development
The utility will own underground ground loops for 44 units in Hinesburg, removing a key financial barrier for electric heating adoption.
Vermont Gas (VGS) has announced a partnership with Dandelion Energy to install geothermal heating and cooling systems at Riggs Meadow, an affordable housing development in Hinesburg, Vermont. The utility will pay for and own the underground infrastructure, a move designed to lower the upfront cost barrier for electric heat pumps in low- and moderate-income housing.
What Happened
VGS will cover the expense for the ground loops, which are the underground pipes required for geothermal systems. Dandelion Energy will manage the system design and drilling. The Riggs Meadow project, developed by Champlain Housing Trust and Evernorth, will include 44 townhomes and apartments. Geothermal systems will serve four multifamily buildings containing 36 of these homes, with each building featuring its own ground loop. Drilling is scheduled to begin in early 2027, with residents expected to move in by late 2027.
Why It Matters
Geothermal systems rely on electric ground-source heat pumps that circulate fluid through underground pipes to transfer heat between the earth and the building. While these systems are efficient in Vermont’s varying climate, the high initial cost of installing underground infrastructure often prevents adoption in affordable housing projects. By owning the ground loops under its Clover Energy program, VGS removes this capital expenditure from developers. Residents will own the indoor equipment and pay a monthly fee for the use of the ground loops, though specific fee amounts have not yet been disclosed. This model aligns utility infrastructure investment with decarbonization goals, potentially offering a scalable template for other regions.
"Geothermal is one of the best solutions we have to make cost-effective, renewable heating and cooling options accessible to more Vermonters," said Neale Lunderville, president & CEO of VGS. "We are thrilled to partner with Dandelion Energy to demonstrate ways geothermal can be scaled to meet community needs. As Vermont looks to rapidly build housing to meet demand, our teams are eager to incorporate geothermal into our product portfolio to give more choices to homebuilders and customers."
The Bottom Line
Vermont Gas’s initiative demonstrates a utility-led approach to overcoming the upfront cost hurdles of geothermal heating in affordable housing. By assuming ownership of the underground assets, the utility enables the deployment of electric heating solutions for 36 homes, with construction timelines set for completion in late 2027.
