Request for Information: Ground Source Heat Pump Residential New Construction Incentive Pilot

Introduction

The Maryland Energy Administration (MEA) is seeking feedback from residential developers, contractors, community-based organizations, and other interested stakeholders on the design of a potential new pilot grant program that would incentivize developers of new construction housing to install ground source heat pumps (GSHPs) in new developments.

Background

MEA has a mission to promote clean, affordable, and reliable energy and greenhouse gas emissions reductions to benefit all Marylanders in a just and equitable manner. Geothermal energy is a promising pathway to help Maryland meet its clean energy requirements and clean heat standards under the Climate Solutions Now Act of 2022 and promote the important statewide goals of ratepayer affordability and grid stability. GSHPs are cleaner and more efficient than combustible fuel burning systems, and can even be more efficient than air source heat pumps, especially in cold temperatures. GSHPs may be able to significantly reduce peak heating demand compared to other heating methods, depending on the extent of GSHP adoption.

Through this Request for Information (RFI), MEA is seeking preliminary feedback to inform the development of a pilot program that would:

Provide incentives to housing developers to install GSHPs in new residential developments instead of fossil fuel-powered HVAC systems.
Focus on residential single-family developments, including detached homes, townhouses, and small multiplex buildings (up to 6 units), but excluding larger multifamily buildings.
Require that all participating developments be entirely electric, with no fossil fuel infrastructure.
Limit eligibility to developments in low-to-moderate income and overburdened communities in census tracts meeting the requirements of Chapter 98 of the 2023 Laws of Maryland (HB550) (updated guidance and map will be available here soon).

Feedback received through the RFI process will directly inform MEA’s program design and development of the Ground Source Heat Pump Residential New Construction Incentive Pilot.

Please note: this program is subject to change. This document is not a guarantee of fund availability, nor is it a complete and full Funding Opportunity Announcement (“FOA”). Final program parameters and application instructions will be included in the upcoming FOA.

NOTICE: All information submitted to this RFI is generally available for public inspection and is subject to the Maryland Public Information Act (PIA). If the respondent believes information they provide is confidential and therefore should not be disclosed, the respondent should clearly mark this information in their response. Upon request for information from a third party, MEA is required to make an independent determination whether the information must be disclosed under the PIA. Designating information as confidential does not guarantee that it will be withheld from disclosure. Your personal information will be used to efficiently collect and review all proposals. There are no consequences for refusing to provide identifying information. You have the right to inspect, amend, or correct your personal information in conjunction with this ROI, to the extent practicable. By providing your personal information, you are granting MEA permission to share your information for any purpose.

Deadline for Feedback

MEA requests that responses be submitted via this Jotform by no later than Friday, November 7, 2025. MEA may accept comments after this date, but comments received by this date may be most impactful.

If you cannot submit via Jotform, please email your responses to geothermal.mea@maryland.gov with “RFI: Ground Source Heat Pump Residential New Construction Incentive Pilot” in the subject line and the questions you are answering clearly specified.

Feedback Topics

MEA is interested in receiving feedback on the following topics related to the Ground Source Heat Pump Residential New Construction Incentive Pilot. There is also an opportunity for more open-ended feedback at the end of the survey. Respondents can respond to some or all of the questions below.

Name

First NameLast Name

Email

example@example.com

Phone Number

Please enter a valid phone number.Format: (000) 000-0000.

Organization Name (input "Individual" if submitting personally)

Please check the descriptor that best describes your affiliation:

Briefly describe your organization (if applicable) and interest in this potential program.

True or False: There is currently sufficient developer and contractor capacity in Maryland to design and install GSHPs in residential new construction developments.

If False, what capacity gaps exist?

Are you aware of any current or planned housing developments in Maryland that could be suitable for GSHP deployment under the proposed pilot program?

If "Yes", please list and describe them.

What workforce, equipment, or vendor limitations could be barriers to program success?

Should MEA include technical assistance to help developers evaluate site-specific geothermal feasibility as part of this program?

If "Yes", what are the potential benefits of doing so?

Which residential development types are most suitable for GSHP new construction deployment? Select all that apply.

Please briefly explain why you consider certain residential development types particularly suitable, or not suitable, for GSHP new construction deployment.

What are the barriers to including GSHPs in residential new construction developments?

What barriers currently limit development of all-electric residential communities?What solutions can make all-electric developments more appealing to developers and homeowners?

Are there cost and/or performance benefits and efficiencies to be gained by planning GSHP systems at the community or microgrid level from the outset of new development?

What incentive levels and structures would make GSHP installations viable for developers in the qualifying communities (e.g., per GSHP-installation incentive amount, maximum incentive amount for an entire development, etc.)?

How can state incentives best complement existing federal, state, and utility programs?

What challenges and barriers exist in developing affordable housing in low-to-moderate income and overburdened communities?

True or False: the affordability benefits of the proposed program are very likely to reach the low-to-moderate income and overburdened communities it's intended to support.

If "False", what program elements should MEA include to ensure the affordability benefits of this program reach these low-to-moderate income and overburdened communities.

True or False: GSHPs can meaningfully reduce peak/heating cooling demand.

Please briefly explain your answer.

What data should MEA collect to evaluate program success and for external data sharing?

While outside the scope of this pilot program concept, what unique challenges and benefits might arise from deploying GSHPs in new multifamily and mixed-used developments?

Is there anything MEA should consider that isn't asked about specifically in this RFI?

File Upload: Please attach any files you wish to include with your RFI submission.

Request for Information: Ground Source Heat Pump Residential New Construction Incentive Pilot

Basic Information

Market & Workforce Capacity

Technical Feasibility & Site Considerations

Incentives & Financing

Equity & Community

Grid & Performance Evaluation

Additional Feedback