The Colorado Energy Office announced that another $1.6 million in grants were given to 16 geothermal heating and cooling initiatives across the state.

To date, the Geothermal Energy Grant Program has provided more than $10 million in funding for 56 initiatives since its launching in 2023.

The latest amount is expected to be the final round of funding for the program, which provides grants to awardees for planning and installing geothermal heat pumps and thermal energy networks that deliver low-cost, energy-efficient heating and cooling to homes and buildings around the state. 

“By better using the heat beneath our feet to help us, we are leading the nation in innovative clean energy technologies that save Coloradans money, and protect our air quality. Investing in Geothermal heating technology increases energy reliability and serves as a low-cost energy source,” Polis said. 

This round’s recipients included Larimer County, Denver Arts, the town of Hayden, and Aspen School District. 

“Geothermal heating technology plays a huge role in helping Colorado reduce emissions from homes and buildings while saving Coloradans money on heating and cooling costs,” said CEO Executive Director Will Toor. “It’s exciting to see so many innovative geothermal initiatives being made possible due to Colorado’s investment in this technology, and we look forward to seeing more geothermal adoption across the state as these projects set the example of what’s possible.” 

Polis has made geothermal energy development a priority during his time in office. As chair of the Western Governors’ Association, he launched the an initiative that focuses on bringing down barriers and finding opportunities for increased deployment of geothermal energy technology across the western U.S. 

Colorado state lawmakers passed a bill during the 2025 legislative session, creating the Geologic Storage Stewardship enterprise in the Department of Natural Resources. The enterprise will manage and fund the oversight of underground “geologic storage sites,” where carbon dioxide is injected and stored in rock formations.

The process aims to reduce greenhouse gas emissions by trapping carbon dioxide underground, rather than releasing it into the atmosphere. 

Geothermal energy accounts for a very small percentage of Colorado’s electricity generation, but some experts maintain it’s impossible to reach the state’s climate goals without it.

Cities like Pagosa Springs have been using geothermal energy for about half a century in a number of ways, such as heating buildings and melting snow on sidewalks. The state is also home to more than 30 hot springs resorts.

“Colorado’s abundant geothermal energy — the heat beneath our feet — can reduce heating and energy costs and save Coloradans and businesses money,” said bill sponsor Rep. Amy Paschal, D-Colorado. “We’re taking steps today to bring low-cost renewable energy sources to market in Colorado to save consumers and businesses money on energy costs.”