Dandelion Energy Connecting Geothermal to 129 New Maryland Homes through State Grant and Federal Tax Credit
Residential geothermal company Dandelion Energy is teaming up with homebuilders Dream Finders Homes and Ward Communities to connect underground heating and cooling solutions for a total of 129 homes.
With the help of third-party partner Upstream Lease, which provides homeowners financing for geothermal heat pump systems, these projects reportedly represent some of the first community-wide geothermal initiatives in Maryland.
According to a release, this partnership has been awarded $1.3 million in funding from the Maryland Energy Administration (MEA) through the Maryland Ground Source Heat Pump Advantage Pilot Program. The program is adopting ground-source heat pumps (GSHPs) to align with MEA’s mission to help meet clean energy and heat goals.
UpStream will directly receive this state grant funding to act as a third-party owner launching these home construction efforts in the unnamed neighborhoods. As a firm that specializes in clean energy asset management, UpStream will utilize and manage this capital to eliminate the steep upfront cost of residential geothermal installations.
Through this partnership, UpStream will leverage a 40% federal investment tax credit, allowing Dream Finders Homes and Ward Communities to integrate the geothermal systems into their communities at the same or lower cost than traditional HVAC systems. Geothermal was one of the few renewable energy resource incentives which survived in the Trump Administration's One Big Beautiful Bill Act.
While all heat pumps use electricity to move heat from one place to another, GSHP technology leverages steady underground temperatures to efficiently heat homes in the winter and cool them in the summer. As the U.S. Department of Energy explains, this reduces reliance on fossil fuels while helping mitigate peak demand events and enhance grid stability.
"By building geothermal into entire communities from the start, we are providing builders a competitive edge, homebuyers stable and low energy bills and the electric grid with a highly resilient, predictable load profile that stabilizes the network for everyone,” said CEO Dan Yates of Dandelion Energy in a statement.
Upstream aims to lower the upfront cost barriers associated with GSHP installation through its leasing program with Dandelion Energy, supporting affordable housing efforts within qualifying low-to-moderate income thresholds. Upstream claims that GSHP systems offer these residents greater insulation, which can manage fluctuations in utility energy prices.
Overall, the two Maryland projects combined are anticipated to deliver annual energy bill savings of 30% to 40%, according to the companies. The participating communities will also contribute to grid sustainability by reducing peak demand on Maryland's grid by 20% in the summer and 65% in the winter, compared to standard air-source heat pumps.
"Our goal is to give homeowners a better-performing home, not just a new home," said Joe Lucado, vice president of construction operations at Ward Communities.