The Geothermal Energy Grant Program (GEGP) is authorized by House Bill 22-1381 Colorado Energy Office Geothermal Energy Grant Program to create grants that support the use of zero-emission, geothermal energy for electricity generation and space/water heating and cooling in homes, businesses, and communities. The GEGP program portfolio includes three sub-grant areas: Single-Structure Geothermal, Community District Heating/Thermal Energy Network, and Geothermal Electricity Generation. Find more information about each in the “Eligibility” section below.
The Geothermal Energy Grant Program is now open for applications until 5:00 PM MT on Friday, January 19, 2024. See the “How to apply” section below for more information.
Contact information
ceo_geothermal@state.co.us
Sign up for the Geothermal Program Contact List
Related: Geothermal Tax Credit Offering
Overview
Type: Grant
For: Private Entities, Local Governments, Tribal Governments, Public-Private Partnerships; Varies by sub-grant type
Amount: $12 million total ($5 million in Round 1)
Match: Varies by sub-grant type
Program Length: Continuous until funding is expended
RFA rounds: Round 1 open November 14, 2023 through January 19, 2024. At least one additional funding round anticipated in FY25.
Informational RFA webinars
CEO hosted informational webinars for each sub-grant on November 28, 2023. Click the links below to view the recording and meeting materials from each.
Program Q&A
Click the link below to view responses to questions submitted during the formal Q&A period.
Single-Structure Geothermal
- Eligible applicants: Building owners, developers, local governments or municipalities (statutory or home rule municipalities, counties, city and counties, or special districts), Tribal governments, geothermal installers, contractors, gas or electric service public utilities, college or university campuses, and others approved by CEO.
Eligible project costs and types: Applicants installing geothermal loop systems or ground-source heat pumps within groups of non-networked individual single-family residential buildings, individual multifamily residential buildings, or individual nonresidential buildings.
Applicants should coordinate with a geothermal installer, who is limited to 100 residential buildings per contractor. Commercial buildings and state and local government buildings must meet the 2021 IECC or an equivalent or newer code to be eligible. Developers, geothermal installers, or commercial building owners that apply must attest they will use licensed plumbing or mechanical contractors with apprenticeship programs.
Community District Heating/Thermal Energy Network
- Eligible applicants: Building owners or operators, campus owners or operators, geothermal installers, public utilities, political subdivisions/local governments (such as statutory or home rule municipalities, counties, city and counties, or special districts), Tribal governments, consultants, developers, and others approved by CEO.
Eligible project costs and types: applicants constructing ground-source, water-source, or multi-source thermal systems that serve more than one building.
Parties involved with the application may not apply for more than two grants per year. CEO will prioritize projects in low-income, disproportionately impacted, or just transition communities, as well as projects that would not otherwise occur without grant funding.
Geothermal Electricity Generation
- Eligible applicants:
- Local governments: statutory or home rule municipalities, counties, city and counties, or special districts
- Tribal governments
- Corporations: any corporation that is registered in Colorado and meets all legal requirements established by Colorado Statute (§ 7-90-102, C.R.S.) and the Colorado Secretary of State
- Gas or electric service public utilities: any public utility as defined in § 40-1-103, C.R.S., providing electric, steam, or associated services in the state of Colorado
Eligible project costs and types: applicants developing geothermal electricity generation technology and/or projects that use geothermal energy with electrolyzers to produce hydrogen or power direct air capture technology.
Eligible for local governments, corporations, and gas or electric service public utilities. An applicant may apply for more than one cost-matching grant in a year for projects less than $1 million. An applicant may only apply for up to two grants per year for projects over $1 million.
The following are allowable grant types and amounts as established by the program.
1. Single-Structure Geothermal
Grant award amounts dependent on installed tonnage:
- Non-residential buildings (Tonnage limit: 100 tons)
- For-profit: Up to $2,000/ton capacity
- Non-profit: Up to $3,000/ton capacity
- Multifamily buildings (Tonnage limit: 100 tons)
- For-profit: Up to $2,000/ton capacity
- Non-profit: Up to $3,000/ton capacity
- Single-family (Tonnage limit: 5 tons)
- For-profit: Up to $2,000/ton capacity
- Non-profit: Up to $2,000/ton capacity
2. Community District Heating/Thermal Energy Network
Note: Parties involved with the application may not apply for more than two grants per year
- Scoping Study to determine GHG reduction potential and costs
- Up to $100,000
- Design Study to evaluate issues, legal and financial responsibilities
- Up to $500,000
- Installation of projects serving more than one building
- Up to 50% of the first $1 million project cost
3. Geothermal Electricity Generation
Note: Parties involved with the application may not apply for more than two grants per year
- Study to identify and explore resources that may be suitable for geothermal electricity generation
- Up to 50%, not to exceed $500,000
- Study to identify and explore resources that may be suitable for geothermal electricity generation and include either hydrogen generation or direct air capture technologies
- Up to 60% for projects costing less than $1 million; up to $500,000 for projects costing more than $1 million
- Projects concerning an identified potential geothermal resource but need confirmation through drilling and testing, or are seeking to develop a project generation site
- Up to 50%; +$500,000 additional per project for projects costing more than $1 million
Application materials for each GEGP sub-grant, including RFAs, Grant Application Forms, and supplementary documents, are available through the link below.
Download GEGP Application Materials
Applicants should follow these steps to complete and submit a grant application:
- Review the GEGP Request for Applications (RFA) documents to ensure understanding of the program objectives, eligibility, and requirements.
- Review and complete the grant application form specific to the sub-grant and project phase that matches up with the applicant’s proposed project.
- Once applications are complete, applicants should review the Grant Application Checklist to ensure they have completed all required application documents and supplemental attachments.
- Applicants will submit all completed grant application forms and required attachments to ceo_geothermal@state.co.us as a .zip file (maximum file size 25mb). If necessary, applicants can submit multiple emails as to not exceed the 25mb size limit. The subject line for application emails should be formatted as follows: “Organization, Sub-Grant Name and Sub-Grant Phase (if applicable), Number of Email Submittals Sent (multiple emails may be required if the zipped application exceeds 25mb)”. For example: “Colorado Energy Office, Geothermal Electricity Generation, Phase 1, Email 1 of 2”
When applying for a grant, check to make sure that your organization is referencing the correct Request for Application (RFA) document and Grant Application Form. There are unique documents for each grant sub-type: Single Structure Geothermal, Community District Heating/Thermal Energy Network, and Geothermal Electricity Generation.
As detailed in the RFA documents, applications will be reviewed and scored by a scoring committee. The scoring template for the first round is publicly available in the application materials linked in the “How to apply” section.
Awardees will be notified and the funds will be dispersed through CEO’s grant contract process.
Distribution by grant type:
- Single Structure Geothermal: The first funding round allows for up to $1 million. No more than 80% of GEGP funds may be used for this grant type. 25% of awards must be provided to Low Income, Disproportionately Impacted, and Just Transition applicants.
- Community District Heating: The first funding round allows for up to $2 million. No more than 25% of GEGP funds may be used for this grant type.
- Geothermal Electricity Generation: The first funding round allows for up to $2 million. No more than 40% of GEGP funds may be used for this grant type.
Other geothermal incentives
Click the link below to see a list of other grants and tax incentives that could potentially be paired with the Geothermal Energy Grant Program funding:
GEGP Grant and Incentive Tracker
"What is geothermal?" informational video
Geothermal Energy Grant Program Informational Webinar
In December 2022, the Colorado Energy Office hosted an informational webinar on the Geothermal Energy Grant Program to educate about the program and gather feedback from stakeholders about barriers to funding within the industry.