An Idea that Could Save Money

One of the ideas I’m most proud of bringing to the Natural Resources Commission is a study of the use of geothermal technology to heat and cool the City’s public works building. The study is looking at 1) technical feasibility and 2) whether or not it will save the City money.

It began with a funding opportunity for a ‘Geothermal Planning Grant’ that I brought forward to the Commission and City staff. I also shared my personal experience with geothermal technology, including photos of the construction process, as we have used it to heat and cool our home in Mendota Heights since 2010. See this video for a brief explainer of the technology.

After receiving City Council approval to apply, the City was awarded a $130,000 grant with zero local match (zero match is not common, in my experience). Five test holes were drilled to a depth of 250 feet to determine if the soils/geology are suitable. That part of the study was completed earlier this year with positive results. The economic analysis and full report are expected to be completed later this year.

Heating and cooling a building with geothermal energy and a ground source heat pump is, without question, the most efficient technology currently available. The challenge is the drilling cost to install plastic pipe underground. One interesting fact is that the The One Big Beautiful Bill Act retained the 30% tax credit for commercial geothermal systems, which local governments can take advantage of through a rebate. So, there is bipartisan support for this type of clean energy. Also, at least for residential customers, Xcel Energy offers a dramatically lower electricity rate for homes using electric heat pumps.

For no cost to the City beyond staff resources, the City Council will have clear and thorough information on whether or not this is a smart idea. In my opinion, if it’s a money saver, it should be pursued. If it’s not, it should wait until research/innovation brings the cost down further. Regardless, it’s a smart way to manage City resources and make a sound financial decision.