New York state has launched a $3.8 million initiative to stimulate the financing and installation of large-scale geothermal heating and cooling systems at state and local government entities, public and private schools and healthcare facilities.
The New York State Energy Research and Development Authority, or NYSERDA, and the New York Power Authority, or NYPA, announced on Dec. 6 the Geothermal Clean Energy Challenge in support of Gov. Andrew Cuomo's goals of cutting statewide greenhouse gas emissions and energy costs.
The geothermal funding program offers these entities and facilities the chance to apply for an assessment of their buildings to determine if they are well suited for the installation of geothermal pumps for the heating and cooling of buildings. Geothermal pumps transfer heat to and from the ground.
“Geothermal energy can be an ideal, cost-conscious, and clean solution to heating and cooling buildings in New York,” said Gil Quiniones, NYPA president and CEO, in a news release.
NYPA is the largest state-owned electric utility in America, while NYSERDA serves as the state government's financing vehicle for energy projects. Both entities serve critical roles in New York's statewide clean energy transition to procure 50% of New Yorkers' electricity needs from renewables by 2030 while subsidizing upstate nuclear generation and cutting emissions by 40%.
The $3.8 million in project financing comes after Cuomo signed Senate Bill 688 into law on Nov. 29 that allows geothermal to qualify for a program that allows homeowners to pay for the installation of their systems over time through their monthly energy bills.
Cuomo had vetoed legislation twice in 2015 and 2016 that would have reduced installation costs of geothermal energy systems by 25%, or up to $5,000. The proposed geothermal energy tax credits would have also made up for the loss of a 30% federal tax incentive for geothermal installations that expired at the end of 2016.
In support of bolstering more funding efforts and a campaign to raise public awareness of heating alternatives to fossil fuels, environmentalists staged a rally for geothermal and renewable heating on the steps of the state legislature in Albany on Dec. 6.
“Momentum and excitement are building as people across New York learn about alternatives to heat their homes without oil, gas, and other fossil fuels,” said Jessica Azulay, an activist with the Alliance for a Green Economy, in a news release. “People are looking for ways to save money and protect our climate, and they are looking to Governor Cuomo to continue to enact game-changing policies that will make heat pumps affordable and available for all."
According to the Alliance for a Green Economy, more than 38% of New York's emissions come from the combustion of fossil fuels in buildings, mostly for heating. Physicians, Scientists and Engineers for Healthy Energy estimate that to achieve the state's 2030 goal of a 40% reduction in emissions, 126,000 buildings a year must convert from fossil fuels, including natural gas and oil, to efficient electric heat pump systems.
"Any heating and cooling contractor currently operating in NYS has an opportunity grow their business in the transition to heat pumps,” said John Ciovacco, president of Aztech Geothermal, a geothermal heat pump installer in Ballston Spa, N.Y. “The sheer volume of conversions needed will spur significant job creation for local installers, plus attract equipment manufacturers and finance companies to support the growth."
Applications for the NYSERDA and NYPA-administered geothermal building assessment will be accepted through March 30, 2018, or until 75 eligible applications are received, whichever comes first. The 75 eligible applicants will receive a summary report at no cost with quantitative analysis of the technical and economic viability of their potential geothermal systems.
Of these 75 eligible applications, up to 25 of the most viable sites will be awarded a more refined economic analysis and building energy model for their proposed geothermal systems and up to $125,000 in matching funds per site for detailed design studies.
Once qualification criteria are met, participants can solicit project capital for construction through NYPA financing and NYSERDA rebates. NYPA, NYSERDA and state utilities also have various energy efficiency programs available to help further reduce energy costs for the projects. This includes $15 million of rebates for geothermal system installations and $10.95 million in incentives for air source heat pumps made available in 2017 by NYSERDA.
