Geothermal heat pumps (GHPs)—also called ground source heat pumps or geothermal systems—are the best solution for air conditioning and heating. According to a December 2023 report from the Department of Energy’s Oak Ridge National Laboratory, GHPs are a smart, ready-to-go way to decarbonize homes and buildings, cut down on the need for new electricity infrastructure, and help everyday Americans across the nation save money on energy. The One, Big, Beautiful Bill Act of 2025 makes it possible for homeowners to lease a geothermal system from a third party (TPO). This is a win for homeowners, utilities, builders, developers, energy service providers, and anyone looking to invest in reliable, cost-saving, long-lasting renewable heating and cooling.
Exploring TPO: A Smart Solution for Geothermal Systems
The Benefit to Installers
With third-party ownership, installers can bring geothermal solutions to more homeowners—no matter their budget. You have the flexibility to offer $0 down options to low, medium, and high-income households, and upsell projects that deliver long-term utility savings—without the need for customer financing. Plus, you’ll benefit from ongoing maintenance and service agreements, and opportunities for residual income from commissions and those service contracts. This approach opens up geothermal opportunities across your network like never before.
Contractors can purchase project bundles and even act as third-party owners to build recurring revenue streams—transforming tax liability into an additional source of income instead of investing in assets that depreciate.
Projects can be bought out between 6 and 25 years, giving you and your customers flexibility. As the first to market, we invite you to take advantage of these new opportunities—whether you’re based in Illinois or beyond (expansion coming soon!). A portal we're developing will let investors track their projects, end users see payments and status, and installers manage designs and proposals, all in one place.
The Benefit to Homeowners
For homeowners, third-party ownership allows for a ground source heat pump with absolutely no out-of-pocket cost. That means $0 down. This is how homeowners benefit from the savings unlocked by the 30% tax credit. It's passed along by the third-party provider in the form of no upfront cost.
Most homeowners see real savings, with lower heating and cooling bills averaging $33 to $125 each month. As part of the monthly fee that goes toward buying out the geothermal system, homeowners gain access to an ongoing maintenance plan from a trusted local HVAC professional, keeping your system running smoothly year after year. It’s a simple, worry-free way to enjoy all the perks of geothermal—for the lifetime of the system, with no upfront hassle or unexpected expenses. Typically, as long as the homeowner is paying the monthly fee, there should be no additional unexpected service or maintenance visit expenses.
The Benefit to Third-Party Owners
So, how do the third-party owners benefit? These forward-thinking partners play a major role in making geothermal accessible—while also gaining substantial rewards. Third-party owners receive the 30% federal tax credit, directly reducing their tax liability and supporting long-term investments. Plus, for public and private companies, utilities, and energy providers focused on sustainability, this is an ideal way to add renewable energy to their portfolio.
An Example of Third-Party Ownership for Geothermal with Numbers
Let’s look at how the numbers stack up in real life. Imagine a complete geothermal system that costs $50,000 to install. This includes the ground loop field, unit, ductwork, indoor air quality, zoning, thermostats, and water heating. The third-party owner receives all available incentives and then leases the system to the homeowner for $375 per month over at least 6 years. That means the homeowner pays off more than half the system within that timeframe. Afterward, depending on their agreement, the homeowner has the option to pay off the remaining balance and own the system outright, or keep their monthly payment going over the life of the system.
The monthly fee covers everything—even air filters—so there are no surprise service bills. Ever. Air filtration and indoor air quality upgrades are built in, too. Homeowners get a top-tier, energy-efficient system with unbeatable comfort and humidity control. Geothermal truly outperforms every other heating and cooling option available.
To sweeten the deal, with an average $75/month in utility savings, the homeowner’s net monthly payment drops to $300. That means real savings, great comfort, and a worry-free geothermal system for 20 to 25+ years—the typical lifespan for geothermal equipment.
Commercial Businesses Can Benefit from Third-Party Ownership, Even with Tax Credits Available
Even though commercial organizations can access the federal tax credit, there are times when budget or tax liability may not cover a geothermal project—especially for non-profits, newer companies, or those with limited tax equity, such as schools, municipalities, and institutions.
Third-party ownership makes upgrading to geothermal simple and predictable. With a fixed monthly rate, organizations enjoy reliable heating and cooling without worrying about maintenance surprises or budgeting for major system replacements. Plus, most commercial customers see up to 50% (or more) savings on heating and cooling costs and meet their sustainability goals while reducing their carbon footprint. It’s a straightforward, budget-friendly way to enjoy comfort and achieve an organization’s energy goals.
Third-Party Ownership for Geothermal Is a Great Choice for Everyone
When it comes to third-party ownership for geothermal, as a distributor starting a pilot program, Supplied Energy brings everyone together under one roof—installers tap into new streams of income, investors gain reliable returns and valuable tax advantages, and homeowners enjoy high-performance comfort with zero upfront costs or surprises. Our third-party ownership model unites every link in the chain, making the benefits of geothermal accessible and rewarding for all. With dedicated sales tools, a support portal, and an approved vendor (installer and manufacturer) network, our team is ready to help each party succeed at every stage. If you’re an installer, investor, homeowner, manufacturer, commercial owner, or someone curious about joining our program, connect with us today and see how we can move forward together.
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