One of the most exciting clean energy technologies with the potential to impact the future of mountain towns is geothermal energy, which has been embraced by both political parties as a practical and high-impact opportunity for towns on the front lines of climate change.
At the Mountain Towns 2030 Climate Summit in Breckenridge, CO, a diverse panel of experts gathered to explore the role of geothermal energy in decarbonizing mountain communities, calling it a “breakthrough point” for the technology.
From municipal leaders and engineers to financiers and state energy officials, their conversations highlighted practical pathways, financing tools, and ongoing collaborations that are making geothermal a key piece of the climate puzzle for mountain towns.
The Challenge in Mountain Communities: Decarbonization and Resilience
Mountain towns often face volatile energy costs, limited infrastructure, and regulatory hurdles that complicate climate action. As Luke Cartin, lands and sustainability lead for Park City Municipal, explained, “If you just look at the variability of natural gas pricing, it is nutty. It is all over the place.” This unpredictability creates both economic risk and barriers to long-term planning for sustainable energy systems.
At the same time, these communities must maintain reliable heating and cooling year-round in harsh mountain climates. Conventional systems can be inefficient or reliant on fossil fuels, producing greenhouse gas emissions that worsen climate change. The need to “de-risk” energy—making it more stable, affordable, and clean—has never been clearer.
Geothermal energy offers a compelling solution. Unlike air source heat pumps that lose efficiency in cold temperatures, geothermal systems leverage the earth’s stable underground temperatures. This creates highly efficient heating and cooling with less energy input. Moreover, geothermal can be integrated into thermal energy networks that share heat and cooling loads among buildings, maximizing efficiency.
“Imagine if you had a bunch of buildings that all had their solar array, but they were not inner tied at all and they’re all trying to balance their own heating and cooling,” Cartin explained.
“That’d be a pretty insane grid. The nice thing with these thermal energy networks is the goal of saying, we have heat over here, we have a heating need over here. How can we share those things?”
Building Unlikely Alliances: Partnerships That Power Progress
Scaling geothermal from concept to community-wide implementation requires collaboration across sectors—local governments, utilities, financiers, engineers, and residents. The panelists emphasized that these partnerships are not only necessary but also create surprising alignments between environmental and financial goals.
Alexandra Iseman, managing director at D.A. Davidson, described the nonpartisan appeal of geothermal projects: “You don’t have to choose between saving the polar bears and making a good investment. Honestly, you can do both. These systems offer what you’re looking for… They help you solve the solutions.”
Creative financing models are critical to making geothermal projects viable. The federal Investment Tax Credit (ITC) for geothermal, extended through 2032, provides substantial support.
Iseman explained how both public and private entities can leverage these incentives: “For governmental entities, utility districts, and nonprofits, there are direct pay options that return 30 to 50 percent of project costs as cash once the project is placed into service. Private owners can monetize tax credits by selling them to tax credit buyers, recovering much of their investment upfront.”
There are also state incentives available to accelerate geothermal. For example, Colorado’s Energy Office launched a $12 million geothermal program under the “Heat Beneath Our Feet” initiative. Bryce Carter, the program’s manager, shared encouraging results: “We’ve awarded over 60 projects, from studies to buildouts, including in Eagle County and at Colorado Mesa University. We’re seeing hundreds of millions in incentives over the next decade to support heat pumps and geothermal systems.”
These programs also focus on building knowledge and trust—key ingredients in an emerging market. “You move at the speed of trust in communities,” Carter explained. “We’re working with partners to form a Colorado geothermal council to bring stakeholders together and close gaps around utilities, incentives, and regulations.”
From Ideas to Action: Engineering the Future of Thermal Energy Networks
While the concept of geothermal can sound complex, the technical approach is grounded in proven engineering practices. Matt Garlick, CEO of the Grey Edge Group, shared how his firm guides clients through a phased process to ensure success while mitigating risk.
The journey begins with a Phase One study to identify potential thermal energy sources and loads—whether from groundwater, wastewater heat, snowmaking systems, or other resources. Phase Two refines this data to understand energy demands and resource capacities. Then comes pre-design and coalition building, followed by engineering design led by certified geothermal professionals.
Garlick emphasized the importance of doing it right the first time: “There are some things you can’t afford to do wrong the first time. Once you pop that hole, … there’s no going back. You’re committed.” He added that commissioning agents, especially those with a Certified Geothermal Inspector certifications, are critical to ensure that systems perform as designed, maximizing carbon reductions and financial returns over the long term.
Real-world examples illustrate these principles in action. Park City’s new water treatment plant uses ambient-temperature water from a nearby mine shaft as a heat source. By extracting less than a tenth of a degree of heat from the water, the system is able to efficiently warm the building. This project demonstrates how even very small temperature differences can be harnessed effectively.
Scaling Up Mountain Towns’ Geothermal Future
The panelists are optimistic that geothermal energy can play a transformative role in mountain towns’ climate strategies. With pilot projects demonstrating feasibility, financial incentives lowering upfront costs, and collaborative efforts building expertise and trust, the pathway is clear.
As Park City’s Cartin put it, “It seems like it’s at a breakthrough point. It’s exciting to be jumping out of the very high level study and coming down an elevation to look at the next one.”
Iseman summarized the broader appeal: “Whatever your municipality or organization values—carbon reduction, sustainable energy, resiliency, or making a good investment—these systems offer it.”
Carter encouraged mountain towns to tap into available resources and join ongoing conversations: “It’s a really exciting time. Things are heating up in Colorado, and we’re here to be a resource as you navigate this emerging market.”
Key Takeaways for Mountain Towns
Mountain towns looking to explore geothermal energy can take several practical steps to advance projects and build resilience:
- Conduct initial feasibility studies to identify available thermal resources and potential building loads.
- Engage local governments, utilities, engineers, and financiers early to build coalitions and share knowledge.
- Explore available federal and state incentives, including the Investment Tax Credit and merit-based geothermal tax credits.
- Work with certified geothermal designers and commissioning agents to ensure systems are well designed and implemented.
- Consider thermal energy networks to maximize efficiency by sharing heating and cooling loads among multiple buildings.
- Participate in or establish local geothermal councils or working groups to foster collaboration, address barriers, and develop best practices.
- Learn from pilot projects in other mountain communities to understand challenges and successes.
- Communicate the financial and environmental benefits clearly to build community support and political will.
The path to decarbonizing mountain towns is complex, but geothermal energy offers a clean, stable, and scalable solution grounded in local resources. By working together across sectors and leveraging available tools and expertise, mountain communities can harness the heat beneath their feet to power a resilient, sustainable future.