Troy firm brings little-known geothermal technology to the Capital District

Imagine being able to cool your home in New York State for just $10 a month in the summer and heating it for $70 a month in the winter.

That’s the experience of one couple in Ontario, NY, who switched to a relatively novel technology called geothermal. The EPA says geothermal heat pumps are the most energy-efficient, environmentally clean, and cost-effective systems for heating and cooling. Geothermal can cut your energy costs by 65-70%.

No wonder business is booming at Energy Catalyst Technologies, a geothermal firm based in Troy and founded by Matthew Desmarais, a graduate of Clarkson University in Potsdam, NY.

According Desmarais, Energy Catalyst is the only geothermal heat pump manufacturer in New York State, and almost all of their components are made in America. Despite its energy efficiency, ground source heat pumps are used by less than 1% of homes in the U.S. It’s more popular in Europe, which is where Desmarais worked for a time to learn about this technology.

“Our ideal customers are homeowners who have existing hot water heating systems—meaning they have baseboards, radiators or radiant floors, which is about 50% of homes in upstate New York,” Desmarais said during a recent tour of the company’s Troy warehouse. “These are the people who will see the most in energy savings.”

Here’s how geothermal works: Flexible hoses are run deep underground where the temperature hovers around 55 degrees. When the house needs cooling—like this week when temps are reaching 90—a refrigerant absorbs heat inside the house and circulates it underground for cooling. Heating in the winter basically works in reverse, bringing the heat underground into the cold house.

As you might have guessed, installing geothermal requires some digging, so it may not work for all homeowners. Then there’s the cost: Desmarais says the average residential installation will run about $60,000. But you can get a 30% federal tax credit from the Inflation Reduction Act. Additionally, NYS will give you a 25% tax credit to a max of $5,000, and a Clean Heat rebate of $7-9,000. Together, these tax credits could cut the cost by half.

From a revenue perspective, Desmarais says the real potential is going commercial—heating an entire college campus, for example, or a housing development with hundreds of homes. Right now, “our sweet spot is a commercial building that’s between 5,000 to 20,000 square feet,” he says.

Desmarais says the company is doubling its sales every six months, and bringing on new employees to meet the demand—”we’re growing really fast.”

Here’s the best part: For readers of The 518, Energy Catalyst is offering a $500 discount on your project. Go green and never see another shockingly high utility bill again.