A new study suggests an elementary school and recreation center in Philadelphia could share a geothermal heating and cooling system — and federal tax credits could make it less expensive to install than a standard HVAC setup.
Here's what to know
Estimated at about $19 million before incentives, a closed-loop geothermal system for East Mount Airy's John F. McCloskey Elementary School and the Dorothy Emanuel Recreation Center was found to be technically feasible in a study by Philadelphia Gas Works, according to The Philadelphia Inquirer. With federal tax credits, the projected cost falls to roughly $11 million.
McCloskey and the rec center are next to each other on a roughly six-acre property, with about 77,000 square feet of interior space between them. With that setup, a single underground system could provide heating and cooling to both buildings.
Victoria Flemming, executive director of the School District of Philadelphia's office of environmental management and services, said the school relies on an older oil-fired heating system and lacks central air-conditioning.
"It is using heating oil, which has low energy efficiency and has a high impact to air quality," Flemming said.
She also said that extreme heat has forced the school to switch to virtual classes and cancel student activities.
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More background
Geothermal systems use the steadier temperatures below the earth's surface rather than relying only on outdoor air. Water mixed with an environmentally safe antifreeze circulates through buried piping, allowing the system to move heat into or out of a building as seasons change.
Neal Babcock, a principal with Alderson Engineering, which conducted the study, said that underground conditions at the McCloskey site appear suitable for this kind of project. He said geothermal systems often cost more to install upfront but tend to be cheaper to run and maintain over time.
They can also cut pollution from buildings, which remains a major concern in older schools and public facilities.
"Geothermal systems reduce the total energy consumption to heat and cool the building," Babcock said. "Instead of burning fossil fuels like natural gas, they use the cool temperature of the ground to be less extreme than the air temperatures or needing to burn fossil fuels."
What's being done?
The study remains an early step. There is no construction timeline, no secured funding, and no final ownership decision, and the geothermal tax credits would apply only if the system has a single owner.
That ownership question matters because geothermal projects qualify for federal incentives even as support for some other clean energy technologies has shifted. The federal Investment Tax Credit covers geothermal systems, but those credits are scheduled to phase out in 2034 and 2035.
The district has identified about $3 billion in facility improvements it wants to make, while having funding for only about $1 billion.
"We've completed the feasibility study, which is good news," said Elliot Gold, vice president of corporate planning at PGW. "It tells us that this is favorable and that there are no definite technical showstoppers."
Where can I learn more?
Philadelphia's proposal is part of a broader push to use geothermal systems in public buildings and other large facilities. Around the country and beyond, schools, civic institutions, and major energy users are testing the same underground approach at very different scales.
• In Maryland, officials are betting on geothermal for schools and data centers despite slow home adoption.
• Across the industry, the heat beneath your feet is increasingly replacing conventional heating and cooling.
• In London, one of Parliament's biggest buildings uses geothermal for heat.
• Geothermal innovation is accelerating as companies pursue earth-shattering advancements in geothermal for cleaner energy.
Those examples help explain why Philadelphia is looking into geothermal energy. They also underscore how factors such as scale, ownership, and upfront cost can determine whether a promising idea makes the leap from feasibility study to actual construction.
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