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Consumers Energy to Pilot Geothermal System Project to Reduce Emissions, Heating Costs for Customers

Michigan Business Network: MPSC

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JACKSON, Mich., Feb. 20, 2025 – Consumers Energy has received approval from the Michigan Public Service Commission to conduct a feasibility study about the potential implementation of a network geothermal system in areas where the company serves as both electric and natural gas provider. The effort will reduce heating costs for vulnerable customers while also lowering emissions in neighborhoods with historically low air quality.


“Network geothermal systems have been demonstrated to improve energy efficiency by up to 600 percent, supporting environmental justice, carbon reduction and cost savings,” said Holly Bowers, Consumers Energy’s vice president of gas engineering and supply. “This study is only the beginning of our work, and we look forward to taking what we learn from it and continuing to expand to support our customers’ needs.”

The study will model and assess the potential for a network geothermal system, planning for the most cost-effective and energy-efficient locations to replace natural gas usage through electrical heating and cooling options. The systems, which have been used for decades in places like college campuses, work best in regions with diverse energy loads, like neighborhoods adjacent to industrial parks.

Networked geothermal refers to a method of heating and cooling buildings and homes by using a ground-source heat pump to transfer liquid via a looped pipe system. In the case of network geothermal, this interconnected system allows energy to be shared between customers, allowing heat rejected by a business for cooling purposes to be used by a home down the street, greatly increasing energy efficiency.

The project aims to reduce emissions from heating Michigan homes and businesses by 17 percent by 2030, eliminating approximately 8 tons of CO2e per home annually. It also contributes to the MI Healthy Climate goal of achieving economy-wide carbon neutrality by 2050.

Consumers Energy is Michigan’s largest energy provider, providing natural gas and/or electricity to 6.8 million of the state’s 10 million residents in all 68 Lower Peninsula counties. We take seriously our responsibility to provide that gas to millions of customers that need it from us, and that is why we’re making our system stronger, safer and more affordable than ever before. 

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