Colorado Awards $7.3M for Geothermal Projects

Governor Jared Polis called geothermal “the future,” highlighting its potential to improve air quality and reduce energy costs for Coloradans. “By tapping into this natural renewable resource, we are able to provide innovative clean energy technology to our businesses, schools, and local governments, while improving our air quality, decreasing pollutants, and saving people money,” Polis said in the announcement.

Expanding Access to Geothermal Networks

The Colorado Energy Office (CEO) has now distributed more than $23.2 million in geothermal funding statewide, combining $13.8 million from GETCO and $9.4 million from the Geothermal Energy Grant Program (GEGP). These funds stem from HB23-1272 Tax Policy That Advances Decarbonization, enacted in 2023 to accelerate renewable energy adoption.

Four recipients in the latest round include:

• Town of Vail – $1.78M: Installing a thermal energy network linking the Vail Public Library and Dobson Ice Arena, with plans to connect ski area and sanitation facilities.
• Colorado Springs District 11 – $5M: Creating a geothermal system at Palmer High School to lower taxpayer-funded energy costs and demonstrate efficiency in public schools.
• Colorado Bathhouse – $526K: Retrofitting two 1948 buildings in Denver’s La Alma neighborhood into a geothermal-powered wellness facility.
• City of Steamboat Springs – $42K: Conducting a feasibility study for a ground-source thermal loop to heat and cool municipal buildings.

These projects are among 40+ geothermal networks already funded through GETCO and GEGP, reflecting growing interest from municipalities and private entities seeking low-carbon heating alternatives.

Decarbonizing Colorado’s Built Environment

“Heating buildings with fossil fuels is a leading source of greenhouse gas pollution in Colorado,” said Will Toor, Executive Director of the Colorado Energy Office. “We are seeing growing interest in geothermal heating and cooling across the state, not only to help us achieve our climate goals, but also to reduce energy costs, improve indoor air quality, and ease demand on the electric grid.”

Because ground temperatures remain stable year-round, geothermal networks can exchange heat between buildings through underground pipes, balancing energy use and reducing grid strain. According to the U.S. Department of Energy (DOE), geothermal heat pumps can reduce energy use by up to 44% compared with air-source systems and cut emissions substantially when deployed at scale.

Looking Ahead

Colorado’s GETCO program offers $35 million in total tax credits through 2032, with $13.8 million still available. Applications are open twice yearly—in spring and fall—with the next deadline set for December 31, 2025. The program continues to position Colorado as a national leader in harnessing “the heat beneath our feet” to achieve cost-effective, community-based decarbonization.