Geothermal heating and cooling is on the rise in New York City, where real estate developers have incorporated the technology into the city’s most anticipated new building projects. Local policies and incentives throughout New York State, such as tax breaks for energy-efficient buildings, have sparked this new trend.
The growing adoption and advancement of heat-pump technology has also played a key role in geothermal’s rise. Modern geothermal heat pumps can provide heating and cooling with minimal energy consumption, making them an appealing choice for urban developers looking to enhance the sustainability of their projects. Earlier this year, nine states including New York, signed an agreement to promote sales of heat pumps, eyeing a target of 2030 for heat pumps to make up 65 percent of residential heating, cooling, and water heating equipment sales. By 2040, the goal is for heat pumps to account for 90 percent of the HVAC and water heating market.
There is a growing demand from buyers and tenants for sustainable living options. Properties equipped with clean energy technologies like geothermal are often seen as more desirable, which can lead to higher property values and faster sales.
“There’s no question that advanced energy systems like this are the future,” said Jay Valgora, founder and principal at Studio V.
Two residential developments on opposite sides of Brooklyn have not only incorporated geothermal heating and cooling systems—they are using them as a way to attract tenants.
1 Java
In Greenpoint, a neighborhood on the northern tip of the borough, Lendlease is the developer behind 1 Java Street. The $1.3 billion mixed-use development is taking shape on a 2.6-acre site and will have 834 residential units, 30 percent of which will be designated affordable, along with more than 13,000 square feet of retail space. Its vertical, closed-loop geo-exchange system will decrease annual carbon emissions from cooling and heating by 53 percent compared to a typical residential system.
Upon completion, scheduled for 2026, 1 Java St. is expected to be the largest residential geothermal building in the State of New York, as well as one of the largest in the U.S.
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New York’s Geothermal Residential Buildings Are Setting the Bar
1515 Surf Avenue
New York City’s largest geothermal development has just opened on Coney Island. 1515 Surf is located just off the neighborhood’s famous boardwalk. The 16-story, 463-unit residential tower was developed by LCOR and designed by Studio V. It sits on top of an intricate geothermal system that stretches across more than an acre and harnesses the Earth’s heat to both heat and cool the property.
LCOR, a real estate investment and development firm, initially did not set out to include geothermal-powered heating and cooling systems at the project, but in exploring ways to make the project sustainable in the long-term, they opted to move forward with one. The fully electric development is expected to reduce carbon emissions by more than 60 percent compared to similar systems
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New York city’s biggest geothermal building just opened on Coney Island, and you can live in it
Coverage of geothermal installation expanded to Massachusetts, where CDM Smith engineers have been building the country's first utility thermal energy network (UTEN):
The movement is gaining traction outside of New York, too. In 2023, a neighborhood in Framingham, Massachusetts, swapped out its fossil-fueled furnaces for a geothermal system that provides heating and cooling for 40 buildings, including low-income apartments, single-family homes, small businesses, and the local fire station.
