Geothermal Energy Grant Program

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


See all Clean Energy Program Grants

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