Climate and Clean Energy Grants 2026: IRA Federal Funding Opportunities

DOE Office of Clean Energy Demonstrations (OCED)

The Department of Energy's Office of Clean Energy Demonstrations (OCED) was created by the IIJA and IRA to manage large-scale demonstration projects for emerging clean energy technologies. OCED oversees several multi-billion-dollar grant programs targeting technologies that are past the research stage but not yet commercially deployed at scale. The Regional Clean Hydrogen Hubs (H2Hubs) program committed $7 billion for up to six regional hydrogen production, storage, distribution, and use networks — awards were announced in 2023 and grantees are in active project development through 2026 and beyond. Organizations within designated H2Hub regions can engage with hub leadership as subcontractors, suppliers, community partners, or workforce training providers.

The Long Duration Energy Storage (LDES) Demonstration program, funded at $505 million, supports projects demonstrating grid-scale storage technologies with durations of 10 hours or more — including flow batteries, compressed air energy storage, thermal storage, and gravity-based systems. Carbon Capture, Utilization, and Storage (CCUS) demonstration programs through OCED and the Office of Fossil Energy and Carbon Management fund commercial-scale carbon capture at industrial facilities and direct air capture projects, with the Bipartisan Infrastructure Law providing $3.5 billion for four regional Direct Air Capture hubs. Industrial Demonstrations Program grants of $50 million to $500 million target hard-to-decarbonize sectors including steel, aluminum, cement, and chemicals. Applicants to OCED programs are primarily large industrial companies, utilities, and research institutions — but supply chain companies, equipment manufacturers, and workforce training organizations can participate through sub-awards.

EPA Greenhouse Gas Reduction Fund

The IRA created the $27 billion Greenhouse Gas Reduction Fund (GGRF) at EPA, divided into three programs. The National Clean Investment Fund ($14 billion) awarded grants to two national nonprofit green banks — Climate United and Coalition for Green Capital — which are deploying capital for clean energy and energy efficiency projects in low-income and disadvantaged communities through loans, grants, and other financial instruments. The Clean Communities Investment Accelerator ($6 billion) funded five nonprofit hubs that are providing capital and technical assistance to community development financial institutions (CDFIs), credit unions, and green banks serving disadvantaged communities. The Solar for All program ($7 billion) awarded grants to 60 state, territorial, tribal, and nonprofit programs to expand low-income household access to residential solar and other distributed clean energy.

By 2026, these GGRF awardees are actively deploying capital and accepting applications from project developers, solar installers, community organizations, affordable housing developers, and CDFIs. Organizations in the clean energy space should identify the GGRF awardee operating in their state or region and reach out for financing. Unlike competitive federal grants, GGRF capital flows through financial intermediaries, so the application process resembles a green loan or equity investment application rather than a federal grant proposal. The EPA maintains a GGRF program page at epa.gov/greenhouse-gas-reduction-fund with updated information on awardees and their programs.

USDA Rural Energy for America Program (REAP)

The USDA's Rural Energy for America Program (REAP, CFDA 10.868) provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. The IRA significantly expanded REAP, increasing funding to over $2 billion through FY2031 and raising the grant component from 25% to 50% of eligible project costs (up to $1 million for renewable energy systems and up to $500,000 for energy efficiency improvements). Eligible technologies include solar photovoltaic, wind turbines, anaerobic digesters, biomass systems, geothermal systems, small hydropower, and ocean energy. Energy efficiency improvements cover HVAC systems, insulation, lighting, cooling systems, refrigeration, and similar upgrades.

REAP applications are accepted on a rolling basis through USDA Rural Development State Offices; check with your state office for current funding availability and application windows. Agricultural producers (farmers, ranchers, agricultural cooperatives) and rural small businesses with 50% or more of their revenue from rural areas are eligible. Projects must be in rural areas (defined as communities of 50,000 or fewer population). The program uses a tiered scoring system that rewards smaller projects, underserved communities, multiple technologies, and projects with higher energy efficiency gains. USDA also administers the Higher Blends Infrastructure Incentive Program (HBIIP) for fuel retailers installing E15 or higher ethanol and biodiesel infrastructure, and the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program for larger biomass and bioenergy projects.

IRA Tax Credits and Direct Pay

While not grants, the IRA's expanded and new tax credits function as grants for eligible entities through the "direct pay" (elective payment) provision. Tax-exempt organizations — including nonprofits, municipalities, tribal nations, and rural electric cooperatives — that invest in qualifying clean energy property can elect to receive the value of credits as direct cash payments from the IRS rather than applying them against tax liability. This is a fundamental change from prior law, which made tax credits nearly inaccessible to tax-exempt entities. Eligible credits include the Investment Tax Credit (ITC, Section 48) for solar, wind, fuel cells, and other eligible clean energy property; the Production Tax Credit (PTC, Section 45) for wind, solar, and other qualifying generation; the Clean Hydrogen Production Credit (Section 45V); and the Commercial Clean Vehicle Credit (Section 45W) for electric vehicles and charging equipment.

The base ITC is 30% of eligible project costs; bonus credits (10% each) are available for projects in energy communities (areas affected by coal plant retirements or fossil fuel employment), projects meeting domestic content requirements (equipment manufactured in the U.S.), and projects in low-income communities or on Indian land (through the Low-Income Communities Bonus Credit Program, administered by DOE). Municipalities and counties planning solar, storage, or EV fleet projects can effectively receive 30–50% of project costs back as IRS direct payments, dramatically reducing the net project cost. Consult a tax attorney or clean energy finance specialist for project-specific guidance on IRA credits and direct pay mechanics.

State Energy Program and Additional DOE Grants

DOE's State Energy Program (SEP, CFDA 81.041) provides formula grants to 56 states and territories to implement energy efficiency and renewable energy programs, with additional competitive funding for specific priorities. IRA provided $550 million in supplemental SEP funding for states to strengthen their energy codes, implement clean energy plans, and run efficiency programs. DOE's Energy Efficiency and Conservation Block Grant (EECBG, CFDA 81.128) program, resurrected by the IIJA with $550 million in additional funding, provides grants directly to cities (100,000+ population), counties (200,000+ population), and states for local clean energy and efficiency initiatives — street lighting upgrades, building retrofits, fleet electrification, and community energy planning. Smaller units of government can access EECBG through their state energy office as sub-grantees.

DOE EERE's Building Technologies Office, Solar Energy Technologies Office, Wind Energy Technologies Office, and Vehicle Technologies Office each publish competitive funding opportunity announcements (FOAs) through the EERE Exchange portal (eere-exchange.energy.gov). Awards range from $500,000 for technology development projects to over $100 million for large-scale demonstrations. Research institutions, national laboratories, manufacturers, utilities, and state/local governments are the primary applicants. The DOE Loan Programs Office (LPO) provides loan guarantees — not grants — but offers financing for clean energy projects that cannot obtain conventional financing; the Title XVII Innovative Clean Energy Loan Guarantee Program and the Advanced Technology Vehicles Manufacturing (ATVM) program are key LPO tools. All DOE grant applications require SAM.gov registration, a Grants.gov account, and an EERE Exchange account.