Like many states across the country, the Maryland housing market has been challenging for both builders and home buyers.
For the home buyer side of things, Maryland is short 100,000 homes. The supply-and-demand equation is severely misaligned, and prices have been climbing for years.
On the builder side, the cost of connecting to an aging natural gas system is rising, and communities prefer homes that are all-electric and high performing. Lot sizes are becoming denser, home buyers are facing affordability pressures, and not to mention, the builder market is becoming more and more competitive.
However, a massive shift is taking place. While Maryland is building homes as fast as possible, we’re seeing a change in how we build that could finally offer some relief. Geothermal heating and cooling has officially moved from a niche luxury to the most attractive, affordable standard for builders and homeowners across the state.
Here’s why the ground is shifting in Maryland in 2026 and how we’re leading the way to bring efficient and affordable heating and cooling to the state’s residents.
Geothermal Heating and Cooling At Scale
For a long time, geothermal was that cool, high-efficiency tech reserved for custom builds.
No longer.
At Dandelion Energy, we are focused on production homebuilding, leveraging economies of scale to reduce costs and increase availability. Instead of moving a drill rig for a single day to one house, we’re mobilizing rigs for months at a time across entire communities.
It’s a proven model for affordability and efficiency, allowing us to slash installation costs by nearly 50%!
Local leaders like EYA show exactly how it’s done. In partnership with Dandelion, EYA is integrating geothermal heating and cooling into its new home construction, allowing it to meet new regulatory standards (like the gas bans we’re seeing in places like Montgomery County).
They are achieving this while keeping costs under control, delivering value to builders, buyers, and communities.
See how we piloted this type of deployment with Lennar in Colorado.
Financials That Actually Make Sense
Let’s talk about money.
As the US Environmental Protection Agency (EPA) explains, “Geothermal heat pumps are the most energy-efficient, environmentally clean, and cost-effective systems for heating and cooling buildings.”
Historically, this green choice carried a premium… Not in 2026.
We’ve introduced a leasing program that is an absolute game-changer for Maryland.
Instead of the upfront cost, homeowners can now access geothermal for as little as $10 to $40 per month. Realizing that’s typically less than what these homeowners would save on their monthly energy bills, the decision becomes a no-brainer.
The result is three-fold:
- A premium feature that builders can use to stand out.
- Home buyers benefit from lower overhead costs from day one.
- A cleaner, quieter, and safer way to build (no outdoor condensers, no carbon monoxide).
On top of that, the Maryland Energy Administration (MEA) is leaning in with grant opportunities. The program incentivizes the installation of ground-source heat pump (GSHP) systems at scale in new residential construction developments.
MEA will provide a per-GSHP installation incentive to residential builders, developers, housing authorities, or eligible business entities that install GSHP systems in qualifying new construction residential developments. MEA anticipates that $2,000,000 will be available for the program in 2026.
The bottom line: It’s never been easier or more affordable for Marylanders to access geothermal heating and cooling!
A Win for Maryland’s Energy Grid
While these changes create huge wins for home builders and buyers, there’s another player winning big as geo enters the mainstream: Maryland’s Grid.
As the state pushes forward toward electrification and phases out gas, the grid faces a serious challenge.
Standard air-source heating and cooling systems can create massive demand spikes. This happens in the summer and winter months when there is extreme heat or cold outside, and therefore, higher temp control usage inside.
Geothermal systems, however, introduce a solution that uses a fraction of the energy and electricity of their alternatives (hence the lower utility bills!). By using the earth’s stable underground temperature, their systems are 2-4 times more efficient, especially during these peak demands.
Stable Comfort, Static Costs
We’re incredibly excited to be part of the growth in Maryland. We’ve already designed over 200,000 tons of these systems and partnered on neighborhoods across the DMV that thousands of people now call home.
Ready to see how this fits into your 2026 plans?
Whether you’re a builder looking to differentiate your next project or just someone tired of high energy bills, we’re here to help you make the move. Let’s build something better, together.
