Abstract

The concern of the U.S. Federal and New York State governments regarding climate change has led to the adoption of energy policies aimed at reducing greenhouse gas emissions. In this context, both governments established financial incentives for the implementation of Ground Source Heat Pump (GSHP) in residences and facilities. Under this framework, this paper aims to analyze how these policies affect customers and Energy Saving Companies (ESCO) under Energy Saving Performance Contracts (ESPC). Additionally, it explores potential opportunities for GSHP projects arising from these policies. The research is structured into three main parts: the first part focuses on ESPC negotiation processes, available business models, and ESCO regulation in NY State. The second part delves into the relevance and operation of GSHP systems, providing case studies of ESCOs implementing them. The third section evaluates financial incentives at federal and state levels for GSHP implementation and their impact on ESPCs. The research methodology employs bibliographic, qualitative, and exploratory methods, supplemented by comparative and inductive approaches. The conclusion of this research demonstrates that many federal and state financial incentives can be used when developing a GSHP ESPC to benefit both customers and ESCOs through the many forms of incentives available that will be significantly influenced by factors such as the ESPC business model, GSHP system performance, customer income, and region of implementation.

Keywords:Energy policies; Financial incentives; Geothermal