Advanced Energy Fund Grant

The Advanced Energy Fund Grant is administered by the Ohio Department of Development through its Office of Energy and Environment. This program is intended to support projects that increase energy efficiency, reduce energy costs, and contribute to the creation or retention of jobs in Ohio. The grant provides state-funded resources to businesses, nonprofits, educational institutions, and public entities to implement eligible energy efficiency measures. By targeting reductions in fossil fuel emissions and energy consumption, the fund aligns with Ohio’s broader goals of promoting sustainability and strengthening economic competitiveness. Funding is available in fiscal years 2026 and 2027, with $8.5 million allocated for FY 2026. Grant awards will range from a minimum of $250,000 to a maximum of $2,500,000. Funding cannot be used for new building construction, building expansions, or research and development projects. Instead, the program prioritizes retrofits and upgrades to existing facilities and systems. Eligible projects include insulation, high-efficiency lighting, HVAC upgrades, energy management systems, process heating and cooling equipment, combined heat and power systems, renewable energy components when part of a larger energy efficiency project, and replacement of traffic signals and streetlights with energy efficient alternatives. Applicants must meet strict eligibility criteria. Eligible entities include corporations, limited liability companies, limited partnerships, nonprofits, school districts, colleges and universities, and units of local government. All applicants must be registered with the Ohio Secretary of State as either an Ohio entity or a qualified foreign entity doing business in Ohio. Applicants must also either own the property where the project is located or hold a long-term secured lease. All projects must be located in Ohio and demonstrate at least a 15 percent reduction in energy usage with a payback period of 15 years or less. An ASHRAE Level II energy audit certified by a licensed Ohio engineer or architect is required to verify energy savings potential. Applications must be submitted through the State of Ohio’s OH|ID system, and applicants are required to provide organizational details, project descriptions, technical audit results, budget information, and supporting documentation such as tax IDs, certificates of good standing, and insurance documents. Applications will be reviewed on a competitive basis until all funds are committed. Scoring will prioritize project information (50 points), environmental compliance (15 points), project readiness (20 points), matching funds (5 points), and supporting documentation (10 points). The Ohio Department of Development reserves the right to partially fund, reject, or request revisions of submitted applications. Successful applicants must adhere to compliance and reporting requirements, including monthly progress reports during installation, a final project completion report, and quarterly energy measurement and verification reports for one year after project completion. Projects will also be subject to inspections and site visits. Applicants must also agree to provide at least two facility tours and participate in outreach efforts during the grant period. Reimbursements are processed after project completion, requiring documentation of expenditures, invoices, proof of payment, and relevant certifications. An Ohio Supplier ID is required to receive disbursements. The application window is open for 60 days, closing on October 31, 2025, at 5 p.m. Eastern Time. Applications will be accepted until funds are depleted, with awards reviewed in 90-day cycles. This program is recurring, with annual rounds announced by the Department of Development. Questions can be directed to the Office of Energy and Environment, Energy Section, via email at energy@development.ohio.gov. The program guidelines were revised and issued on August 11, 2025, and all applicants must ensure compliance with federal and state regulations where applicable.