Polis Administration Awards $7.3 Million for Innovative Geothermal Heating and Cooling

The Colorado Energy Office (CEO) announced $7.3 million in awards through the third cycle of the Colorado Geothermal Energy Tax Credit Offering (GETCO) on Thursday. This competitively awarded, refundable tax credit will support four thermal energy network projects in the state, including a feasibility study and three installations. Awardees include local governments, a school district, and a local business. To date, Colorado has successfully awarded a total of $23.2 million as part of the state’s nation-leading efforts to deploy innovative geothermal technology for both heating and cooling and electricity generation, including $13.8 million from GETCO and $9.4 million from the GeothermalEnergy Grant Program (GEGP). Funding for GETCO comes from HB23-1272 Tax Policy That Advances Decarbonization, sponsored by Representatives Mike Weissman and Junie Joseph, Senator Lisa Cutter, and former Senator Steve Fenberg; and signed by Governor Polis. “Colorado is at the forefront of using the heat beneath our feet to heat our homes and save Coloradans money. Geothermal is the future, and 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,” said Governor Polis. 

With temperatures just below ground remaining constant year-round, geothermal technology can deliver extremely energy and cost-efficient heating and cooling to Colorado buildings. Thermal energy networks connect multiple buildings via underground pipes, enabling several buildings connected to the network to share heat resources between them. The four projects awarded through the current funding cycle are among more than 40 thermal energy network projects the state has awarded through GETCO and GEGP to date. 

“Heating buildings with fossil fuels is a leading source of greenhouse gas pollution in Colorado,” said CEO Executive Director Will Toor. “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 on hot summer days. We are proud to continue supporting these innovative projects, which show what’s possible using the heat beneath our feet.” 

CEO awarded the following projects through the third GETCO funding cycle: 

• The Town of Vail ($1,781,506.80) will use its award to install a thermal energy network connecting the Vail Public Library and the Dobson Ice Arena, with potential future plans to connect the ski area, lodging, and sanitation facilities to the network. This project demonstrates how high-elevation mountain communities can use geothermal to meet heating needs.
• Colorado Springs District 11 ($5,000,000) will install a thermal energy network connecting a new and existing building on the Palmer High School campus in downtown Colorado Springs. This project will show how geothermal can save taxpayer money by lowering energy costs in schools.
• Colorado Bathhouse ($526,200) will install a thermal energy network to retrofit two 1948 buildings into a wellness facility in Denver’s La Alma neighborhood. This project demonstrates the multisector applications for geothermal energy.
• The City of Steamboat Springs ($41,866.50) will conduct a study to determine the feasibility of installing a ground source loop thermal energy network to heat and cool municipal buildings.

A total of $35 million in tax credit reservations is available through the GETCO program, with about $13.8 million in funding remaining. CEO will open GETCO applications twice annually in the spring and fall through 2032 or until all tax credits are reserved. Applications are currently open for the fall 2025 funding cycle until December 31, 2025. 

Find more information about Colorado’s innovative efforts to advance geothermal technology on the state’s Geothermal website. A full list of state-funded geothermal projects is available in the GeothermalIncentive Awards tracker.