A new housing development south of Denver is serving as a test bed for bringing ground-source heat pumps to the mass market. Dandelion Energy and Lennar have completed nearly 100 homes at Ken Caryl Ranch, each equipped with its own geothermal system. The companies say the approach could turn a technology that has been expensive and custom-built into a standard feature of new residential construction.
Ground-source heat pumps use boreholes drilled 200 to 500 feet deep to tap steady underground temperatures, then rely on heat pumps to heat and cool homes. Dandelion says its lightweight rig can drill boreholes for one or more homes per day, and building the systems across many similar houses at once avoids custom plans and costly retrofits. The company claims the systems use a quarter as much electricity as air-source heat pumps during cold snaps, reducing peak demand while electrifying homes.
Ground-source heat pumps still face high upfront costs—averaging around $25,000 per home—and permitting and space constraints in dense areas. But a recent iScience study found the technology is economically viable across the continental U.S., and a DOE report projects geothermal could reach 7 million homes by 2035, saving about $4 billion annually in grid costs. Xcel Energy rebates of roughly $25,000 per home are helping offset costs in Colorado, where the utility must cut emissions under the state's Clean Heat Standard.