Geothermal Rebate Program

December 05, 2012


December 2012 Update:  CEFIA has not yet developed or launched a new financing program. The below information is for historical reference only.

Using funding from the American Recovery and Reinvestment Act (ARRA), the Clean Energy Finance and Investment Authority (CEFIA) is offering geothermal heat pump rebates on a first-come, first-served basis to pre-approved systems installed after December 15, 2009. This program is meant to run in conjunction with the existing utility geothermal rebate programs (Connecticut Light & Power Company, United Illuminating Company). Projects within these utilities' service territories are required to apply to both the utility and the CEFIA programs. 

CEFIA requires that buildings meet minimum efficiency levels to be eligible for the geothermal heat pump rebate.

Residential projects
New homes must be Energy Star rated. Existing homes must participate in their utility's Home Energy Solutions Program (or comparable) and recommended energy efficiency improvements must be made prior to installing the geothermal heat pump. Developers are eligible for rebates on 25 residential dwellings with separate systems as long as separate applications are submitted and multi-family projects with five or more dwellings will be treated as a commercial project (and commercial rebate amounts apply). 

Commercial projects
Buildings must meet or exceed the Connecticut Building Code Standards and applicants are strongly encouraged to participate in other programs funded by the CEFIA (if applicable), which are offered through certain utilities.* 

Applicants must be sure to select contractors eligible to conduct the geothermal installations, check CEFIA's website for the list.

Because these incentives are provided using ARRA money, beneficiaries will be subjected to additional terms and conditions, including reporting requirements among others.

*Connecticut Light & Power Company and United Illuminating Company

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Connecticut
Incentive Type: Rebate Program
Web Site:
Administrator: Clean Energy Finance and Investment Authority
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Heat Pumps
Eligible System Size: 10 tons (for residential, the rebate only covers the first 6 tons)
Equipment Requirements: Must be closed-loop geothermal heat pump system. Must be Energy Star rated. At least 50% of the total heating load must be met by system. Equipment must be commercially available and offer manufacturers' warranty.
Installation Requirements: All buildings applying for the rebate must meet certain efficiency requirements (see summary for more information). All systems must be installed by IGSHPA-accredited installers or Certified GeoExchange Designer.
Ownership of Renewable Energy Credits: CEFIA


Name: Connecticut Green Bank
Address: 865 Brook Street
Rocky Hill CT 06067
Phone: (860) 563-0015

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.