Geothermal energy provides reliable, dispatchable renewable power and direct heating applications that operate continuously regardless of weather conditions, making it essential baseload clean energy infrastructure across the United States. From utility-scale power generation facilities harnessing high-temperature reservoirs to ground-source heat pump systems serving individual buildings, geothermal projects require specialized financing that addresses unique exploration risks, capital intensity, and long development timelines. CBO Financial structures comprehensive funding solutions for geothermal energy by integrating EPA clean energy programs, Community Development Financial Institutions lending, New Markets Tax Credit equity, and federal tax incentives. Whether developing conventional hydrothermal resources, enhanced geothermal systems, or district heating networks, strategic financing structures can mitigate resource risk while accelerating deployment across the United States and its territories.
Federal Financing Programs for Geothermal Projects
Multiple federal programs provide essential capital for geothermal energy infrastructure:
The Investment Tax Credit (ITC) for geothermal energy provides up to 30% of qualified project costs for facilities that commence construction by the end of 2032, with enhanced bonus credits available for domestic content and energy community locations. This substantial tax benefit can be monetized through tax equity partnerships, direct pay elections, or credit transfer mechanisms.
The National Clean Investment Fund (NCIF) recognizes geothermal energy as critical dispatchable renewable infrastructure, offering NCIF EPA financing for exploration activities, drilling operations, power plant construction, and transmission interconnection. These EPA-backed facilities provide construction loans, resource risk mitigation, and term debt specifically designed for geothermal development’s unique capital requirements.
The Clean Communities Investment Accelerator (CCIA) deploys capital to underserved markets where geothermal energy can provide reliable power, reduce energy costs for low-income communities, and create economic opportunities in rural areas with geothermal resources. Through CCIA EPA programs, community lenders can support district heating systems, direct-use applications, and small-scale geothermal power projects.
For geothermal facilities located in qualified low-income communities or economically distressed regions transitioning from fossil fuel industries, NMTC loan financing provides substantial equity that can be combined with the Investment Tax Credit, creating powerful blended financing structures that improve project economics while supporting regional economic development.
Who Can Access Geothermal Energy Financing
CBO Financial structures geothermal project financing for diverse applications and developers:
Geothermal Power Developers building utility-scale electricity generation facilities from 5 MW to 100+ MW can access integrated financing covering exploration, confirmation drilling, field development, power plant construction, and transmission infrastructure through sophisticated project finance structures that manage resource risk.
Industrial and Commercial Facilities implementing ground-source heat pump systems for heating, cooling, and process applications can utilize CDFI certification lending programs designed for energy efficiency investments with long payback periods and substantial lifecycle savings.
District Energy Systems deploying geothermal district heating and cooling networks serving municipalities, university campuses, military installations, or residential developments require specialized infrastructure financing that accounts for distribution system construction and customer connection economics.
Agricultural Operations using direct-use geothermal applications for greenhouse heating, aquaculture, food processing, or crop drying can access specialized financing that combines agricultural lending expertise with renewable energy project structuring.
Enhanced Geothermal Systems (EGS) Developers deploying advanced drilling and reservoir stimulation technologies to access geothermal resources in non-traditional locations require financing structures that address technology risk, higher drilling costs, and longer development timelines while supporting innovation in geothermal energy.
Geothermal Project Types We Finance
Our financing expertise encompasses the complete spectrum of geothermal energy applications:
Conventional Hydrothermal Power Plants that utilize naturally occurring hot water or steam reservoirs for electricity generation include flash steam, dry steam, and binary cycle facilities, requiring project finance structures that account for drilling programs, reservoir management, power plant engineering, and long-term resource sustainability.
Enhanced Geothermal Systems (EGS) that create engineered reservoirs through hydraulic stimulation techniques enable geothermal development in areas without conventional hydrothermal resources, requiring specialized financing that addresses higher exploration risk, advanced drilling technology, and reservoir creation uncertainty.
Ground-Source Heat Pump Systems serving individual buildings, campus environments, or community developments provide highly efficient heating and cooling through shallow geothermal resources, requiring financing structures optimized for distributed installations with long equipment lifespans and substantial energy savings.
Direct-Use Geothermal Applications that utilize moderate-temperature resources for industrial processes, greenhouse operations, aquaculture facilities, or district heating systems require specialized financing accounting for process integration, distribution infrastructure, and thermal load characteristics.
Geothermal District Heating and Cooling networks that distribute thermal energy from centralized geothermal facilities to multiple buildings require infrastructure financing for production wells, distribution piping, customer connection equipment, and system control infrastructure with long-term customer contracts.
CBO Financial’s Geothermal Financing Approach
With specialized expertise in resource-risk-intensive renewable energy, CBO Financial provides comprehensive advisory services for geothermal projects:
Resource Risk Assessment and Mitigation coordinates with geoscientists, reservoir engineers, and drilling specialists to evaluate exploration data, design confirmation drilling programs, and structure financing that accounts for resource uncertainty through phased funding and contingent capital structures.
Investment Tax Credit Optimization analyzes optimal timing for construction commencement, evaluates domestic content and energy community bonus credit eligibility, and structures tax credit monetization through direct pay, tax equity partnerships, or credit transfer mechanisms based on developer tax position.
Integrated Capital Stack Design combines Investment Tax Credits with EPA clean energy financing, CDFI lending, equipment financing, power purchase agreement prepayments, and traditional project finance debt to create optimal funding structures that minimize capital costs while managing geothermal development risks.
Power Purchase Agreement Structuring Support assists geothermal developers in negotiating bankable offtake agreements with utilities, municipalities, or corporate purchasers that provide revenue certainty supporting project financing while accounting for geothermal energy’s unique value as dispatchable renewable baseload power.
Drilling Program Financing structures specialized capital for exploration, confirmation, and production drilling phases that account for drilling success risk, cost overruns, and the need for flexible funding that adapts to geological findings throughout well development.
Geothermal Energy Financing Across All U.S. Regions
CBO Financial structures geothermal project financing throughout the United States, from the Western geothermal resource-rich regions to emerging opportunities in the Eastern United States and sedimentary basin applications. Our team understands regional variations in:
- Geothermal resource quality, depth, and temperature characteristics across different geological provinces
- State renewable energy credits, geothermal-specific incentives, and power purchase agreement markets
- Bureau of Land Management permitting for federal lands and state regulatory frameworks for drilling permits
- Regional drilling contractor availability, geothermal expertise, and equipment mobilization costs
- Transmission infrastructure capacity and interconnection requirements in geothermal resource areas
We also serve U.S. territories ,including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands, where volcanic geothermal resources offer exceptional opportunities for baseload renewable energy that can dramatically reduce dependence on imported fossil fuels while providing reliable power for island communities and critical infrastructure.
Launch Your Geothermal Energy Project
Whether you’re conducting preliminary geothermal resource assessments or ready to finalize power plant construction financing, CBO Financial can accelerate your geothermal energy development. Our team will evaluate your project’s resource potential, identify optimal financing structures, and connect you with capital providers experienced in geothermal project finance and resource risk management.
Request a geothermal project evaluation to discuss your financing needs. Our consultants will assess your resource data, drilling programs, power plant design, applicable incentive programs, and develop a comprehensive strategy to secure capital for your geothermal energy investment.