Helping Iowa manufacturers cut energy costs and improve productivity
The Industrial Efficiency Grant Program, administered by the Iowa Economic Development Authority’s Iowa Energy Office, helps Iowa’s small industrial and manufacturing businesses reduce energy costs, improve productivity and strengthen competitiveness through energy-saving technologies and process improvements.
The program offers two funding opportunities: Design Assistance to help businesses plan energy-saving projects and Project Funding to help put those projects into practice. Businesses may apply for Project Funding without first receiving Design Assistance.
Participating businesses can:
- Reduce operating costs through lower energy use.
- Improve productivity and operational efficiency.
- Access funding for technical expertise and capital improvements.
- Modernize equipment and enhance working conditions.
Eligibility
To be eligible, applicants must:
- Be a for-profit company authorized to do business in Iowa
- Operate an industrial or manufacturing facility in Iowa.
- Generate at least 51% of revenue from manufactured goods.
- Employ three to 200 full-time employees.
- Have been in operation for at least three years.
Eligible Projects
Funding supports commercially available technologies and process improvements that:
- Reduce energy use or energy use intensity.
- Shift energy use toward lower-cost, Iowa-based energy sources.
- Capture waste heat or use thermal recovery measures to offset energy use.
- Reduce overall energy demand or peak grid demand.
Funding Details
Design Assistance
Design Assistance helps businesses evaluate opportunities and prepare for energy-saving projects.
- Award amount: Up to $5,000 per award.
- Cost share: Covers 75% of eligible design and technical assistance costs.
- Availability: Five awards statewide.
- Application deadline: 4:59 p.m. CST on November 30, 2026.
Eligible activities include feasibility studies, engineering analysis and project development and planning.
Project Funding
Project Funding helps businesses implement energy-saving technologies and process improvements.
- Award amount: $15,000 to $500,000.
- Cost share: Covers up to 50% of total project costs.
- Available funding: $1 million statewide.
- Application period: May 5–June 7, 2027.
Awards will be based on project scope, energy impact and overall energy use.
Federal Requirements
Projects must comply with applicable federal requirements, including the Build America, Buy America Act; Davis-Bacon Act, which establishes prevailing wage requirements for certain federally funded or assisted construction projects; and Title 2 of the Code of Federal Regulations, Part 200.
Application Process
Design Assistance
Applications open November 2, 2026. Complete the fillable PDF application in the Resources section below and email it to [email protected] by 4:59 p.m. CST on November 30, 2026.
Project Funding
Applications will be accepted through IowaGrants.gov from May 5 through June 7, 2027.