What States Need to Know About Networked Geothermal

Networked geothermal—also referred to as “ambient loop systems” or “community geothermal,” among other terms —is gaining attention among states, utilities, and local governments. Several gas utilities are piloting projects, states—including Colorado, Massachusetts, Minnesota, and New York—have authorized or required pilot programs, and federal funding has supported early demonstrations.

Networked geothermal raises policy, regulatory, financing, and equity questions. This short paper by the Clean Energy States Alliance (CESA) answers foundational questions about networked geothermal. It is intended to support early understanding and decision-making by CESA Members and other state officials.

The report addresses the following questions:

• What is networked geothermal?
• What problems does networked geothermal solve?
• What does a networked geothermal system look like?
• Where does networked geothermal make the most sense?
• How much does networked geothermal cost?
• Who owns and operates networked geothermal?
• What role can utilities play?
• What policy and regulatory issues do states need to understand?
• How can states support early projects and pilots?
• How can networked geothermal advance equity and affordability goals?
• What workforce considerations should states be aware of?
• Do geothermal networks qualify for federal tax credits?