When Sarah Chen launched her clean energy startup in Portland, she wasn’t sure how she’d afford the lab work needed to test her new battery design. Then she found a grant from the U.S. Department of Energy—and suddenly, her team had $200,000 to turn their prototype into a product. Chen’s story is not unique. Every year, the Department of Energy awards more than 600 grants to small businesses like hers through its SBIR and STTR programs, fueling breakthroughs in energy, science, and national security.
Based in Washington, D.C., these programs are designed to help small U.S. companies develop innovative technologies that align with the nation’s energy goals. Since their launch, they’ve supported thousands of startups, many of them brand new or led by first-time founders. The grants are competitive and focused: projects must not only push scientific boundaries but also have a clear path to becoming real products people can use.
Each year, the Department of Energy awards about 400 Phase I grants—typically around $200,000 each—to help companies explore early-stage ideas. Around 200 of those teams go on to win Phase II grants, which provide up to $1.1 million to further develop their technology. Together, these awards total more than $300 million annually. The research spans over 60 technical topics and 250 subtopics, from cleaner ways to produce energy to new materials for solar panels and tools to protect the environment.
The grants come from across the Department, with input from 13 different program offices. Experts in fields like nuclear energy, fossil fuels, and renewable power help shape the research questions, ensuring the work meets real-world needs. One standout program, ARPA-E, focuses on bold, early-stage ideas that are too risky for venture capital but could transform how we use energy. Past ARPA-E projects have led to advances in grid storage, carbon capture, and even fusion energy.
Beyond grants, the Department also offers financing and support for companies ready to scale up, as well as funding for state and tribal governments launching local energy projects. The Office of Energy Efficiency and Renewable Energy, for example, helps small businesses bring solar, wind, and efficiency technologies to market—strengthening both the economy and the environment.
For innovators like Sarah Chen, these programs are more than just funding—they’re a launchpad. With government support, small teams across the country are tackling big challenges, from climate change to energy access. And as the world shifts toward cleaner power, these grants are helping to write the next chapter of American innovation.