Geothermal offers a variety of benefits when compared with other renewable energy resources. It is “always on,” not subject to the intermittency of wind and solar. It doesn’t rely on the weather, as it is sourced from underground. It also can provide baseload power, and thus is being used to energize large areas. It is even being considered as a source of power for energy-intensive data centers.
Coryn DeGrands, Senior Business Development Manager with Bureau Veritas, told POWER that her company supports geothermal projects across their lifecycle. “Our role is to ensure technical rigor, performance verification, and alignment with owner objectives,” said DeGrands, who noted that geothermal may not always be a standalone solution, but can provide the basis for a reliable power system.
“[Geothermal] is most powerful when integrated into holistic energy strategies that prioritize efficiency, flexibility, resilience, and measured performance,” said DeGrands. “As these technologies scale, independent engineering oversight and data-driven decision-making will be essential to delivering both decarbonization and long-term value.”
Bureau Veritas provides comprehensive testing, inspection, and certification services for geothermal energy projects, including technical advisory, risk assessment, site assessment, and project management. DeGrands provided POWER with insight into her company’s work in the sector, . , supporting them from development through operation. Their services include technical advisory, risk.
POWER: Geothermal energy is growing, in part due to technology advances from the oil and gas industry. How important is support (financial, technical, etc.) from the oil and gas sector to growth in geothermal deployment?
DeGrands: Geothermal energy occupies a unique position in the decarbonization landscape. Unlike variable renewable resources, geothermal can provide continuous, baseload, carbon-free energy, making it particularly valuable in regions with suitable geologic conditions.
Advances originating in the oil and gas sector—such as directional drilling, subsurface modeling, and reservoir characterization—have been instrumental in expanding geothermal’s technical and geographic potential. Financial, technical, and workforce expertise from oil and gas has materially reduced development risk and accelerated innovation, particularly for enhanced geothermal systems. Continued cross-sector knowledge transfer remains important for scaling deployment.
POWER: What are the various types of geothermal power plants, and what would make one type better than another?
DeGrands: Geothermal systems generally fall into two broad categories: geothermal power plants and geothermal heat pump systems.
Geothermal power plants include dry steam, flash steam, binary cycle, and emerging enhanced geothermal systems. Meanwhile, geothermal heat pump systems provide heating and cooling for buildings using stable ground temperatures.
The “best” system depends on local geology, project scale, and intended use. Utility-scale geothermal power is well-suited to regions with high-temperature resources, while geothermal heat pumps are broadly applicable across residential, commercial, and institutional buildings—even where electricity generation is not viable.
POWER: What federal and state incentives are available for U.S. geothermal systems in 2026 and beyond?
DeGrands: In the U.S., geothermal projects are expected to continue benefiting from federal incentives such as the Investment Tax Credit and Production Tax Credit, along with technology-neutral clean energy credits introduced under recent federal legislation. State-level incentives, grants, and renewable portfolio standards further enhance project economics, though availability varies by jurisdiction.
From an owner’s perspective, understanding how incentives interact with project structure, timing, and procurement is essential to maximizing value.
POWER: Should homebuilders and real estate developers, in areas where it is accessible, look at geothermal energy as part of their plans?
In regions where geothermal heat pump systems are feasible, homebuilders and real estate developers should strongly consider geothermal as part of long-term development strategies. While upfront costs are higher than conventional HVAC [heating, ventilation, air conditioning] systems, lifecycle savings, improved comfort, resilience, and emissions reductions often justify the investment—particularly for master-planned communities, campuses, and multifamily developments.
For homebuilders and real estate developers operating under triple-net lease structures, geothermal adoption is often challenged by split incentives. Under these leases, tenants typically capture the operating cost savings from lower utility bills, while owners fund the upfront capital investment required for geothermal systems. This can weaken the short-term financial case for developers, even though geothermal delivers long-term energy cost stability, improved comfort, and significant emissions reductions for occupants.
However, geothermal can still make sense in triple-net developments when evaluated through asset value and lifecycle performance rather than first cost alone. Developers are increasingly recovering investments through higher base rents, improved tenant retention, longer lease terms, and reduced mechanical replacement risk. When properly designed, commissioned, and verified, geothermal systems can enhance long-term net operating income, reduce transition risk as electrification and carbon requirements expand, and differentiate assets in a market where high-performance, low-carbon buildings are increasingly valued by tenants and investors alike.
—Darrell Proctor is a senior editor for POWER.
