Brooklyn project shows feasibility of using geothermal in dense urban areas

"The first costs of a conventional system are always going to be cheaper, but the total lifecycle costs of a geothermal system are going to be far more financially feasible. In this case, there were buildings preexisting around it, so there is a very obvious logistical challenge on getting the drills into that very tight space."

"What makes the credit more palatable is that, once you have the high efficiency geothermal heat pumps that are connected to the same ground source loop, it qualifies a lot more equipment for the tax incentive. So it astronomically increases the incentive that you're going to get from the federal government."

LCOR developed 1515 Surf Avenue on Coney Island in Brooklyn, a 400,000-square-foot mixed-use project with retail space and over 460 residential units, including affordable housing. The project features the largest district geothermal system in New York City. While initial installation costs exceeded conventional systems, lifecycle energy and maintenance expenses are significantly lower. Multiple incentives made the project financially viable, including $1.62 million from New York's community heat pump pilot program, $2.9 million from Con Edison's utility clean heat program, and a 30% federal tax credit. The federal credit becomes more valuable when multiple high-efficiency geothermal heat pumps connect to the same ground source loop, qualifying additional equipment for tax incentives.

Read at Smart Cities Dive