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. Grants are intended for the installation of ground-source heat pumps within groups of individual residential buildings or for individual nonresidential buildings, interconnected geothermal exchange systems (community district heating; thermal energy networks), and geothermal electricity projects.
The Geothermal Energy Grant Program is scheduled to launch on or before Tuesday, November 14th, 2023. The final program application process and eligibility criteria will be released at that time.
Contact information
Bryce Carter, bryce.carter@state.co.us
Overview
Type: Grant
For: Private Entities, Local Governments, Public-Private Partnerships
Amount: $12 million total
Match: TBD
Program Length: Continuous until funding is expended
RFA rounds: 1st round opening no later than November 14, 2023; 2nd round anticipated in spring 2024, but subject to change
Eligible applicants
- Private entities: Building owners, developers, geothermal installers, contractors, communities, public service utilities (gas & electric), college or university campuses, and others (approved by program)
- Local Governments: statutory or home rule municipalities, counties, city and counties, or special districts
- Public-Private Partnerships: partnerships between a local government and a private entity
Eligible project costs & types
Grantees may use money received through the grant program for three different project types:
- Single-structure geothermal: Applicants constructing or retrofitting a building with a geothermal system as the primary source of heating and cooling.
- 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): applicants constructing ground-source, water-source, or multi-source thermal systems which 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: 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 Systems (Thermal Energy Networks)
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
Applicants who meet program criteria and eligibility will submit applications and all required supporting documents during RFA cycles.
Application instructions will be released no later than November 14, 2023. Sign-up for the CEO GEO Newsletter or regularly check this website for when the application launches.
Applications will be reviewed and scored by a scoring committee.
Awardees will be notified and the funds will be dispersed using a (to be determined) grant contract process.
Distribution by grant type:
- Single Structure Geothermal: No more than 80% of GEGP funds. 25% of awards to Low Income, Disproportionately Impacted, and Just Transition applicants
- Community District Heating: No more than 25% of GEGP funds
- Geothermal Electricity Generation: No more than 40% of GEGP funds
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.
Geothermal Program Newsletters: