In an opinion piece for Crain's Chicago Business, United's Samarth Medakkar and Climate Control Group’s Joe Parsons highlight the cost savings and grid benefits of geothermal heating and cooling, urging lawmakers to expand access to these proven technologies by passing House Bills 3399 and 3609.
Energy bills are rising throughout the country, and consumers are looking for tech solutions that can help reduce their monthly electric and gas costs. To help consumers, Illinois legislators have proposed several bills that would increase adoption of geothermal heat pumps.
Since 2022, electric heat pumps have outsold gas furnaces nationally, and the gap continues to grow. Heat pumps provide extremely efficient space heating and cooling, lowering energy bills and providing consistent, comfortable temperatures in the home. They also come with lower maintenance and upkeep costs compared with traditional systems that require both a furnace and an air-conditioning unit.
To support their residents’ desire to save money on energy costs, states throughout the country are adopting innovative ways to increase adoption of geothermal technologies, such as heat pump deployment targets, heat pump-specific electric rates, tax credit and rebate programs, and electrification and clean heat programs at scale. Illinois, however, is starting to fall behind. All types of electric heat pumps are popular in various climates, with tremendous growth in colder states like Maine and other Northeast states, Canada and northern European countries. But there are unique advantages to geothermal or “ground-source” heat pumps in states with harsh winters, including Illinois.
Geothermal heat pumps work by transferring heat between the Earth, which remains a stable temperature all year, and the indoor air. This allows them to perform at an efficiency 300% higher than gas furnaces and keep indoor air temperatures stable and comfortable. Critically, these efficiencies directly lower monthly bills, make households and businesses more resilient against energy price spikes and minimize impact to the electric grid, saving all ratepayers money over the long term.
The good news is, given their long list of benefits, geothermal technologies have begun to catch the eye of communities and decision-makers alike in Illinois. In 2023, the Illinois Commerce Commission convened a workshop series to discuss thermal energy network implementation in the state. Through connections of underground geothermal heat pumps, thermal energy networks (TENs) provide exceptionally efficient neighborhood-scale heating and cooling. The technology is being piloted in Michigan, New York, Massachusetts, Minnesota and other states, and is often a good option for mixed-use residential and commercial neighborhoods, educational or workplace campuses and new developments.
Because of the potential energy savings TENs can provide, residents in one Chicago neighborhood are piloting a project funded by the Department of Energy. Blacks in Green is spearheading the West Woodlawn project, which, when complete, leaders estimate will save more than 100 single- and multifamily homes as much as 70% on utility bills. These savings can largely be attributed to having just one energy system and, thus, one utility bill, not two. These projects are critical, as they allow households that may not otherwise have the upfront capital to realize the many benefits of geothermal technologies.
Despite the proven benefits and early interest in geothermal heat pumps and thermal energy networks, Illinois has a lot more work to do to realize the benefits of geothermal technologies across the state. Two bills currently pending in the state Legislature would help consumers access geothermal heating and cooling.
The first, HB 3399, or the Geothermal Homes & Business Act, would create a geothermal renewable energy credit program, allowing geothermal projects in Illinois to generate revenue because these systems reduce peak demand and improve grid resilience, benefiting everyone paying into the utility system. If enacted, the program would make it quicker to recoup the upfront investment from installing geothermal heat pumps, leading to more installations and more job opportunities for drillers, HVAC contractors and electricians.
Similarly, HB 3609, or the Thermal Energy Network & Jobs Act, would increase adoption of geothermal technologies in highly efficient multi-building systems, and spur economic development and driller and pipe fitter job growth, as the bill would require every public utility to propose one to three thermal energy network pilot projects. Pilot programs are critical to understanding the costs and scalability of different applications of thermal energy networks.
Lawmakers should make geothermal systems more widespread and accessible to Illinoisans by passing the Geothermal Homes & Business Act and the Thermal Energy Network & Jobs Act. Not doing so means leaving economic opportunity, grid reliability and consumer savings on the table.
Read the full article here.