Awards from two programs will support 16 geothermal heating studies and projects to bring affordable geothermal heat to Colorado homes and buildings
Statewide - Thursday, Apr. 3, 2025 - The Colorado Energy Office (CEO) announced a total of $14.4 million in funding awards Thursday to support geothermal heating projects across Colorado. This funding from the Geothermal Energy Grant Program (GEGP) and Geothermal Energy Tax Credit Offering (GETCO) will enable awardees to plan and install geothermal heat pumps and thermal energy networks that deliver low-cost, energy efficient heating and cooling to homes and buildings around the state. Awardees include local governments, school districts, residential communities, a medical campus, and a wastewater treatment facility.
“Geothermal energy - the heat beneath our feet - is a clean energy option that will help save Coloradans money and protect our state for future generations. I am thrilled to announce this $14.4 million investment in advancing geothermal energy across our state and empower companies to harness the heat beneath our feet,” said Governor Polis.
CEO made a total of 11 awards through the GEGP program and five through GETCO. Some projects qualified for both incentives based on project eligibility. This round of GEGP provided grants for single-structure geothermal, thermal energy network studies, and thermal energy network construction projects. GETCO recipients receive a refundable tax credit reservation that can be deducted from their income tax liability. Cycle two of GETCO provided tax credit reservations for geothermal electricity or thermal energy network studies and project installations.
“Geothermal energy is such an important part of our overall effort to transform our energy system because it provides a clean, firm energy source for both buildings and electricity generation,” said CEO Executive Director Will Toor. “Geothermal heat pumps and thermal energy networks reduce greenhouse gas pollution while improving indoor air quality and saving Coloradans energy and money on heating and cooling costs. We are pleased to support such a diverse array of geothermal projects around the state through these two key incentive programs.”
The awarded projects include a broad range of ways to utilize geothermal energy. For example, the City and County of Denver will use its GETCO award to study the creation of a cutting-edge, multisource district thermal system that provides heating and cooling through a shared water loop for 5.5 million square feet of municipal buildings.
"The downtown thermal network pilot project is a key step toward a carbon-free downtown Denver,” said Liz Babcock, Executive Director of Denver’s Office of Climate Action, Sustainability and Resiliency. “With support from the state, Denver can meet our community’s needs while demonstrating how this affordable, reliable, and sustainable energy option can meet the needs of cold weather climate cities around the world.”
Liberty School District J-4 will apply its funding to install a geothermal energy network for two buildings at Liberty School. This will replace a 60-year-old hydronic heating system with three cost-efficient heat pumps that will add cooling, improve ventilation, and enhance indoor air quality for better occupant health and comfort.
“Liberty School District J-4 extends its heartfelt gratitude to the Colorado Energy Office for their invaluable support in funding a new geothermal heating and air conditioning system for our K-12 facility,” said Liberty School District J4 superintendent Rhonda Puckett. “Their guidance throughout the GETCO application process was instrumental in developing a compelling application narrative that demonstrated the significant needs of our building (IAQ, temperature control, reliability, etc.). With CEO’s support, our project is now financially viable and is planned to be completed in the summer/fall of 2025 and will significantly improve the learning environment for our students and serve the broader community as a whole.”
GEGP recipients are:
Town of Bayfield: $51,000
Town of Mountain Village: $64,269.50
Town of Winter Park: $64,269.50
Karval School District: $225,000
Liberty School District: $246,000
Golden Hills: $60,000
Mount Zion Church: $240,000
Mountain View Church: $75,000
Memorial Hospital: $57,626.80
Metro Water Recovery: $250,000
Clayworks Parcel B3: $200,000
GETCO awardees are:
Pitkin County: $131,700
Liberty School District: $1.109 million
City and County of Denver: $4.999 million
Eagle County: $3.484 million
Metro Water Recovery: $3.095 million
This announcement marks the second round of funding for GEGP and GETCO. For the first cycle of GETCO, SIMCOE LLC received a tax credit reservation of $1 million for the Florida Mesa Geothermal Project to support the development of up to 20 MW of geothermal electricity in Southwestern Colorado. This funding will help SIMCOE LLC determine the heat source in the project location. The current application cycle for GETCO opened April 1 and will close June 30. GETCO applications will open twice annually through 2032 or until all $35 million in available tax credit reservations have been allocated.
Last May, the Polis administration also announced $7.7 million in awards for the GEGP. Applications for the third GEGP funding round, which is the last planned round of funding for the program, closed March 31. CEO expects to announce awardees in early summer.
In addition to these funding opportunities, the Colorado Heat Pump Tax Credit can help reduce the cost to install eligible heat pump technology, including geothermal heat pumps and thermal energy networks, through 2032.
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