Good Carbon Co. (GCC), a climate-focused developer and financier of sustainable housing and clean energy systems, has closed an upsized $20 million loan facility with NY Green Bank (NYGB), a division of the New York State Energy Research and Development Authority (NYSERDA). The financing will support the installation of geothermal heating and cooling systems across a growing portfolio of affordable multifamily housing properties in the Buffalo region.
The expanded facility represents the first publicly announced Investment Tax Credit (ITC) transferability bridge loan for geothermal heating and cooling technology. The financing enables GCC to advance its mission of developing deeply decarbonized, equitable housing communities by leveraging federal incentives designed to accelerate clean energy adoption.
Over the next year, GCC expects to use the facility to finance up to 25 geothermal systems eligible for federal Investment Tax Credits. These systems will be installed across affordable multifamily housing developments to boost energy efficiency, reduce reliance on fossil fuels, and help stabilize energy costs for residents. Geothermal systems draw energy from underground heat to provide carbon-free HVAC services and are eligible for full federal tax credits if construction begins by the end of 2033.
By unlocking access to federal Investment Tax Credits, the bridge facility will accelerate the deployment of geothermal systems in residential settings, supporting both environmental goals and economic resilience in Western New York communities. The financing also expands upon an existing partnership between GCC and NYGB, which previously provided bridge funding for state-level clean energy incentives tied to GCC’s renovation projects.
This latest upsize positions Good Carbon Co. as a leader in demonstrating how federal and state incentives can be effectively paired to drive the development of decarbonized affordable housing. The initiative reflects a growing focus among both private and public partners on equitable approaches to the clean energy transition, bringing advanced renewable technologies directly to the residents who can benefit most from lower utility costs and improved indoor comfort.
KEY QUOTES:
“This initiative demonstrates how innovative financing can accelerate the transition to clean, equitable energy. By pairing federal Investment Tax Credits with sustainable technologies like geothermal systems, we’re enabling affordable housing communities to benefit from stable, carbon-free energy for decades to come.”
Adam Serbert, President and CEO, Good Carbon Co.
“NY Green Bank is proud to support Good Carbon Co. on this pioneering transaction. As the first publicly announced ITC transferability bridge loan in geothermal, this deal demonstrates the viable investment opportunity of geothermal heating systems in a residential setting while also ensuring that more New Yorkers can enjoy comfortable heating and cooling in their homes.”
Kelsey Clair, Managing Director, Investment and Portfolio Management, NY Green Bank
