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. 

 

Contact information
DeLynne.Southern@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

To be determined.

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