Geothermal Energy

Geothermal Heat pumps provide space heating and cooling throughout the year, and can provide hot water for residential and commercial buildings. The loop system technology leverages the naturally occurring differences between above-ground and subsurface temperatures and is a renewable and sustainable energy source, consistent with wind and solar energy.

How to save $264/year with Geothermal
It’s as easy as 1,2,3!

1. Join the NYSERDA Ground-Source Heat Pump Program 
2. Next, sign up for Insights+ 
3. Then, receive your annual check on June 30th 

Participation with NYSERDA’s Ground Source Heat Pump Program and Central Hudson’s Insights+ subscription service are mandatory in order to receive the credit. System installation and program registration must occur on or after July 1, 2018.

When compared to conventional HVAC systems, geothermal systems can reduce annual heating costs by as much as 50% and cooling costs by up to 35%. Reducing environmental impact is an additional benefit that is attractive to many geothermal system buyers. Annual operating costs fluctuate with the electric supply and delivery rates required to run the systems.

Installation costs vary based on the type of loop system (usually vertical or horizontal), soil type and other factors in your local environment. On average, a typical home of 2500 square feet, with a heating load of 60,000 BTU and a cooling load of 60,000 BTU can cost $20,000 to $25,000 to install. 

The time it takes to recover the initial investment depends on utilization of available rebates and tax credits (up to 30%), and the amount of energy utilized annually. Recouping costs could take as little as four years.

Central Hudson customers who install a geothermal system through the NYSERDA Ground-Source Heat Pump Rebate initiative and sign-up for an Insights+ subscription are eligible to receive an annual credit of $264.


» Use our fuel-switching calculator to estimate your savings

How does a geothermal system work?

There are two types of geothermal systems:

Direct-Use Geothermal

  • Pumping: A well is drilled to tap into hot ground water so that a  pumping system may be installed, although in some cases, hot water or steam may rise up through the well without active pumping.
  • Delivery: Hot water or steam can be used directly in a variety of applications, or it can be cycled through a heat exchanger.
  • Refilling: Depending on the use requirements of the system and the conditions of the site, the ground water aquifer may need to be replenished with water from the surface. In some cases, the movement of ground water might refill the aquifer naturally.

Deep & Enhanced Geothermal

  • Pumping: Hot water or steam is pumped up through a deep well. As the water rises to the surface, the pressure drops and the water vaporizes into superheated steam that can be used for high-temperature processes.
  • Delivery: The heat from the hot water or steam can be used to heat a secondary fluid (a "binary" process), or the hot water or steam can be used directly.
  • Recirculation: Once the heat is transferred to the delivery system, the now-cooler water is pumped back underground.
  • Dispersal: Unlike ground source heat pumps, used ground water in this case is simply injected and allowed to disperse back into the ground, rather than being pumped through a closed loop of pipes.