US Geothermal Tax Credits in 2026: What Is Actually Still Alive After OBBBA For an industry that spent more than a decade building financial models around a stable federal incentive structure, 2026 has been a year of whiplash. The 30% federal geothermal tax credit that developers and homeowners built forecasts around is gone in one form and still alive in another, and even the IRS’s own public guidance has been confusing enough to trigger uncertainty across the market. That confusion is not a minor clerical issue. It is shaping investment decisions, contractor sales pitches, homeowner timelines, and project finance assumptions right now. If you work in geothermal, the key question is no longer whether federal incentives exist, but which incentive applies, to which project type, and under what ownership structure. The law that changed the timeline To understand where things stand in 2026, you have to start with the Inflation Reduction Act of 2022, which created a long runway for clean e...
🌍 Germany’s Geothermal Boom: 2,000 MW in the Pipeline as New Map Reveals Over 150 Deep Geothermal Projects
A newly released map from the German Geothermal Energy Association (BVG) shows a dramatic surge in deep geothermal energy projects across the country. Titled "Deep Geothermal Projects in Germany," the map offers a comprehensive snapshot of over 150 geothermal projects currently in planning, with a staggering potential to generate up to 2,000 MW of thermal energy, and in some cases, electricity.
🔍 Current Geothermal Landscape in Germany
According to the BVG, there are now:
- 42 operational deep geothermal plants
- 31 provide only heat
- 9 produce both heat and electricity
- 2 generate electricity exclusively
- 16 plants currently under construction
- 155 new plants in the planning phase
- 8 research facilities
- 170 thermal baths powered by geothermal sources
The currently installed capacity stands at 408 MW for heat and 55 MW for electricity—a foundation that is set to grow exponentially as new projects come online.
📈 Exploration Boom
In a sign of accelerating momentum, the number of official exploration permits nearly doubled in just two years, reaching 82 as of January 2023. This indicates a surging interest in tapping into Germany’s rich geothermal reservoirs beneath its surface.
💡 Massive Potential for Heating, Cooling & Jobs
“The potential for geothermal energy in Germany is immense,” emphasizes BVG Managing Director Gregor Dilger. According to Dilger, harnessing natural thermal water through deep geothermal means could supply around 25% of Germany’s future heating and cooling needs.
If Germany meets its goal of expanding deep geothermal energy to 10 billion kWh by 2030, it could:
- Create 24,000 new jobs
- Prevent 34 million tons of CO₂ emissions
- Save up to €9 billion in fossil fuel import costs
🇩🇪 What’s Next?
As the country prepares for a change in government, the geothermal sector is calling for:
- A clear expansion strategy
- Improved policy frameworks
- Specific targets for deep, medium, and near-surface geothermal technologies
These measures are seen as crucial to unlocking the full potential of geothermal energy and anchoring it as a cornerstone of Germany’s renewable energy mix.
🗺️ Updated Mapping and Transparency
The BVG updates the geothermal map annually, with digital updates throughout the year. This transparency ensures stakeholders, investors, and policymakers stay informed on the rapid developments in this vital energy sector.
🔥 Final Thought: The Heat is On
Germany's geothermal sector is not just heating homes—it’s heating up the entire clean energy conversation in Europe. With the right political backing, it could become a continental leader in sustainable, underground energy.
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Source:Bayern Innovation

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