The Geothermal Energy Grant is authorized by HB 22-1381 to create grant programs that support the use of zero-emission, geothermal energy for electricity generation and space/water heating and cooling in homes, businesses, and communities.
The grant program is anticipated to launch midyear 2023.
In December 2022, the Colorado Energy Office hosted an informational webinar on the Geothermal Energy Grant Program to review the program and seek dialogue from stakeholders to identify funding barriers within the industry. Click here to watch the webinar.
Contact information
Bryce Carter, bryce.carter@state.co.us
Overview
Type: Grant
For: Public and private entities
Amount: $12 million total
Match: TBD
Program Length: August 9, 2022 - June 30, 2025
RFA rounds: Continuous until expended
Eligible applicants
- Building owners
- Developers
- Local Governments
- Geothermal installers
- Contractors
- Communities
- Public service utilities (gas & electric)
- College or university campuses
- Other (approved by program)
Eligible project costs & types
Grantees may use money received through the grant program for the following purposes:
- New build or retrofit installation of geothermal primary heating or cooling systems
- New build or retrofit community geothermal systems
- Geothermal electricity generation
- Design Studies
The following are allowable grant types as established by the program.
Single-structure Geothermal
Requirements:
- No more than 100 residential buildings per developer/installer
- Commercial, State & Local Governments must meet 2021 IECC Building Codes
- Must utilize licensed contractors within the apprenticeship program
Grant award amounts dependent on installed tonnage:
| Building Type | For-profit $/ton | Non-profit $/ton | Tonnage Limit |
|---|---|---|---|
| Non-residential | Up to $2,000/ton capacity | Up to $3,000/ton capacity | 100 tons |
| Multifamily | Up to $2,000/ton capacity | Up to $3,000/ton capacity | Unspecified |
| Single-family | Up to $2,000/ton capacity | Up to $2,000/ton capacity | 5 tons |
Community District Heating & Geothermal Readiness
Use types:
- Scoping Study to determine GHG reduction potential and costs
Grant award: Up to $100,000/project - Detailed Design Study to evaluate issues, legal and financial responsibilities
Grant award: Up to $500,000 per project - Installation of a project that serves more than one building
Grant award: Up to $500,000 per project or up to 50% of the first $1 million project cost
| Project Type | Eligible Funding | Stipulation* |
|---|---|---|
| Scoping Study | Up to $100,000 | N/A |
| Design Study | Up to $500,000 | N/A |
| Installation | Up to $500,00 | Up to 50% of the first $1 million project cost |
*Parties involved with the application may not apply for more than 2 grants per year
Geothermal Electricity Generation
Use types:
- Grant awarded for studies exploring resources for geothermal electricity production or hydrogen production using geothermal electricity
- Grant award eligibility: Local Governments, Corporations, Public Service Utilities
| Study Type | Cost Coverage up to $1MM | Cost Coverage > $1MM |
|---|---|---|
| Geothermal Electricity Production (GEP) | Up to 50% | Up to $500,000 |
| (GEP) + Hydrogren | Up to 60% | Up to $500,000 |
| Confirmation of Geothermal through drilling & testing | Up to 50% | Up to $500,000 per project (additional) |
*Parties involved with the application may not apply for more than 2 grants per year
The application process for the Geothermal Energy Grant Program will launch in mid-2023.
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: Up to 80% of GEGF funds. 25% of awards to Low Income, Disproportionately Impacted, and Just Transition applicants
- Community District Heating: Up to 25% of GEGF funds
- Geothermal Electricity Generation: Up to 40% of GEGF funds