Many of the communities co-located with geothermal resources are very small and as a result the buildings they contain tend to be small as well. Generally, small buildings (10,000 ft2) use heating systems which are not hot water based. Since geothermal district heating systems deliver hot water, the costs associated with the conversion of small building heating systems to use hot water for heating is an issue of great influence in terms of the potential development of such systems. This paper examines the typical retrofit costs associated with conversion of small buildings and the level of savings necessary to attract the interest of owners. In general, the prospects for connection of such buildings based only on energy savings is not positive