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...
Beneath the Pavement: Manchester’s Hidden Geothermal Power Could Redefine Urban Energy
By: Robert Buluma
What if the future of clean energy isn’t offshore, on rooftops, or in remote landscapes—but buried silently beneath the concrete of our cities?
In Manchester, scientists have just delivered a powerful reminder that the ground beneath our feet may be one of the UK’s most underappreciated energy assets. Beneath a modest car park at the University of Manchester lies a geothermal resource capable of supplying clean, continuous energy on a scale that could power tens of thousands of homes.
This is not a speculative vision or a distant ambition. It is the result of rigorous science, modern geophysical imaging, and a rethinking of how cities can participate in the energy transition.
And it could change everything.
A Breakthrough Hidden in Plain Sight
The discovery emerged from a knowledge exchange project between the University of Manchester and Metatek, a remote sensing company specialising in gravity-based subsurface imaging. By combining legacy geological data collected in the 1980s with new land gravity measurements acquired in 2025, researchers were able to produce the most detailed picture yet of Manchester’s deep subsurface.
Using a simplified version of Metatek’s airborne gravity technology, the team mapped geological structures approximately 2,000 metres below the University campus. What they identified were high-temperature zones formed by burial depth and pressure—precisely the conditions required for viable geothermal energy extraction.
Dr David Johnstone, Senior Geoscientist at Metatek, described the work as laying the “building blocks” for a detailed 3D geological model of the strata beneath Manchester. This model allows scientists to pinpoint the most promising drilling locations with far greater confidence than was previously possible.
In geothermal development, that confidence is crucial. Drilling is expensive, and success depends on accurately targeting the right structures at the right depth. Manchester’s findings suggest that the risk profile of urban geothermal may be far lower than many once assumed.
How Big Is the Opportunity?
The scale of the potential resource is striking.
If developed, the geothermal system beneath the University of Manchester could offset a significant share of the institution’s annual energy demand, which exceeds 100 gigawatt-hours (GWh) per year. That is equivalent to the electricity consumption of approximately 25,000 homes—roughly the size of a town like Altrincham.
To achieve a similar output using solar power would require around 100,000 solar panels. While solar remains an essential pillar of the renewable energy mix, geothermal offers a fundamentally different advantage: reliability.
Geothermal energy provides constant, baseload power. It operates day and night, in summer and winter, independent of weather conditions. Once a system is drilled and connected, it can deliver stable energy for decades with minimal surface impact.
Even more compelling is the economic case. Researchers suggest the payback period for a Manchester geothermal system would be comparable to other mature renewable technologies, positioning it as not only environmentally attractive but financially viable.
A Tennis Court Is All It Takes
Perhaps the most surprising element of the discovery is how little space it requires.
Researchers have identified Cecil Street Car Park as a potential drilling site, with the required surface footprint no larger than a tennis court. Tucked into a corner of an existing parking area, the site could host a geothermal well with minimal disruption to daily city life.
This low-profile nature highlights one of geothermal energy’s greatest strengths in urban settings. Unlike wind turbines or large solar farms, geothermal infrastructure is largely invisible once installed. There are no dramatic skyline changes, no sprawling land requirements—just quiet, continuous energy flowing from deep underground.
For dense cities where land is scarce and public acceptance matters, this characteristic could be decisive.
Why Urban Geothermal Is a Game Changer
Manchester’s discovery is about far more than one city.
Many urban areas across the UK—and indeed across Europe—sit atop sedimentary basins with elevated geothermal gradients. Historically, these resources were ignored, dismissed as too risky or too difficult to develop outside volcanic regions.
That assumption no longer holds.
Advances in geophysical imaging, data integration, and drilling technology are rapidly changing the equation. By reinterpreting legacy subsurface data and supplementing it with modern sensing techniques, cities can reassess their geothermal potential without starting from scratch.
Manchester demonstrates a powerful new model: cities as energy producers, not just consumers. Universities, councils, and private technology firms can collaborate to unlock local, low-carbon energy sources that strengthen resilience and reduce dependence on imported fuels.
A Timely Boost for the UK’s Energy Transition
The discovery arrives at a critical moment.
The UK faces rising energy demand, volatile prices, aging infrastructure, and legally binding net-zero targets. While offshore wind and nuclear power remain central to national strategy, both involve long development timelines, high capital costs, and complex permitting challenges.
Urban geothermal offers a complementary pathway—one that is local, scalable, and incremental. Projects can be developed city by city, campus by campus, without waiting decades for megaprojects to come online.
The Manchester research team plans to expand their work using Metatek’s full airborne gravity imaging system. This next phase could refine subsurface models further and help identify similar geothermal opportunities beneath other UK cities.
If applied nationally, this approach could quietly unlock a new domestic energy class—one hidden not offshore, but directly beneath urban centres.
Rethinking What Lies Beneath Our Cities
Perhaps the most powerful outcome of Manchester’s geothermal discovery is the shift in perspective it demands.
Car parks, campuses, and industrial estates are rarely associated with clean energy innovation. Yet beneath them may lie vast reservoirs of heat accumulated over geological time—energy that is constant, local, and largely untapped.
Manchester’s story challenges policymakers, investors, and urban planners to look down, not just outward.
Because the future of clean energy may not be written on the skyline.
Source: Power Info
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