High Energy Cost Grants (Assistance to High Energy Cost Communities) - American Cities Climate Challenge
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High Energy Cost Grants (Assistance to High Energy Cost Communities)

Federal Agency


Rural Development


To assist energy providers and other eligible entitiesĀ in lowering energy costs for families and individuals in areas with extremely high per-household energy costs (275% of the national average or higher).

Applicant and/or Project Eligibility Requirements

Eligible areas must demonstrate annual average household energy cost exceeding 275% of the national average under benchmarks. The program finances the acquisition, construction or improvement of facilities serving eligible communities as well as equipment, materials, activities, land, right of way acquisition, professional expenses, engineering, and permitting for electric generation, transmission, and distribution facilities. This includes a carve-out for eligible tribal communities.

Decarbonization Considerations

Consider renewable facilities such as solar, wind, hydropower or biomass electric power generation water or space heating process heating and power or backup or emergency power generation or energy storage technology, including generation equipment installed on consumer premises water or space heating process heating and power. Also consider efficiency improvements and conservation measures (i.e. weatherization of residences and community facilities) and programs that encourage the use of energy-saving appliances and devices.

Equity Considerations

This program helps to offset extremely high household energy costs in areas where local conditions cause energy costs to exceed 275% of the national average. This type of assistance increases economic opportunity and the quality of life in rural communities nationwide by maintaining a seamless electric network for all Americans, regardless of where they live.

Helpful Tips


Other Notes


Deadline (Announced or Anticipated)

July 6, 2021

Funding Available


Max Award Amount


Expected Allocations


Average Award (Estimated)


Matching Funds

Not required

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