Geothermal energy is having a major moment in Toronto. A decade ago, less than 1% of new homes used it. This year, it's nearly 30%, all thanks to a simple financial flip, the Toronto Star reported.
This breakthrough solves the biggest problem that has held geothermal back: high upfront costs. Geothermal energy is simply heat from the earth. The U.S. Department of Energy explains it's a reliable, 24/7 clean energy source that works regardless of the weather. For heating and cooling, it uses the ground's stable temperature. In winter, the ground acts as a heat source; in summer, it becomes a heat 'sink,' absorbing excess heat from a building.
The main barrier has always been money. Developers had little incentive to pay for the expensive, deep-borehole drilling, especially when it's the purchaser, not them, who benefits from the lower bills.
Now, an "energy-as-a-service" model is changing the game. According to the Toronto Star, a company named Diverso Energy now pays for and installs the entire geothermal system. Developers pay nothing up front. Diverso then acts like a utility, providing heating and cooling to residents at a fixed, stable rate.
"But the biggest factor has to be this new financing model. It works because the developer doesn't have to pay," Paul Frith, president of the Ontario Geothermal Association, told the Toronto Star.
This model is a win for everyone. Residents get stable utility bills that aren't tied to the volatile gas market. Developers get to offer a green feature that the Toronto Star noted can reduce a building's pollution output by 70%. This shift from burning gas in furnaces directly improves air quality in our communities.
"The beauty of it is the simplicity. It's just plastic, dirt and, water. Nothing to break or wear out," said Tim Weber, co-founder of Diverso Energy, per the Toronto Star.
For those who don't have access to geothermal energy but want to lower their power bills, solar panel installation is a great option. Solar power is the ultimate home energy hack because it can bring your cost of energy down to at or near $0.
You can check out TCD's Solar Explorer to connect with vetted installers and save up to $10,000 on solar installations by curating competitive bids. The Solar Explorer also has $0 down solar subscription program options that can slash your utility rate by 20%. One of these subscription programs, Palmetto's LightReach, offers a solar panel leasing program that allows you to lock in low energy rates.
This initiative in Toronto isn't the only geothermal innovation happening. In Wisconsin, a massive tech campus for Epic Systems runs on one of the world's largest geothermal networks. In Texas, Sage Geosystems has a government contract to analyze a "dry rock" geothermal system to store power for the military at Fort Bliss. And other companies are tackling the drilling itself, with new gyrotron drills that can vaporize rock.
Weber put the choice in simple terms. "If you went back in time 70 years ago and said, 'I've got two options for you to heat your building. One involves drilling two miles deep out west, pumping explosive vapour … into your building … and lighting it on fire," he said, per the Toronto Star. "Or we're going to put pipes in the ground and run water through them. Which option would you prefer?"