The California Energy Commission has opened a competitive $5 million solicitation for advanced energy and decarbonization projects at existing California food-processing facilities. Thermal Energy HQ helps project teams evaluate the thermal-system side of a potential project — heat pumps, heat recovery, thermal storage and load shifting — before the application is built.
Thermal Energy HQ is not affiliated with the California Energy Commission. Program funding, project eligibility, award decisions, requirements, and deadlines are determined by the CEC and may change. Confirm all information with the official GFO-26-302 solicitation before making project or financial decisions.
Figures as published by the California Energy Commission for the Food Production Investment Program 2026.
Total solicitation funding
Smallest individual award
Largest individual award
Of FPIP funds requested
This is a competitive grant solicitation, and funding is not guaranteed. Applications are screened and scored by the CEC, and a single award can consume most or all of the available $5 million. For reference, a $2.5M request requires at least $625,000 in match funding, and a $5M request requires at least $1.25M — match commitments must be documented in signed letters submitted with the application.
FPIP 2026 is open to existing food-processing facilities located in California. The CEC identifies these industry categories by NAICS code:
Processing and production facilities that turn raw agricultural products into food.
Beverage production facilities operating in California.
Cold storage facilities that support food processing.
Postharvest crop activities, except cotton ginning.
Other food-processing support facilities may also be considered.
Farms and agricultural businesses are not automatically eligible — the program is defined around food processing. Final eligibility is determined by the CEC under the solicitation manual.
The CEC's September 2026 pre-application materials identify three eligible technology categories. Projects must also address at least two program goals: electrifying food-related processes, reducing GHG emissions, reducing energy use, supporting grid reliability, or benefiting priority populations.
Systems that combine solar PV, battery or thermal storage, and controls to operate as a single unit — either connected to the grid or independently in island mode — while supporting critical loads at the site.
Replacing existing fossil-fueled food-processing equipment with electric-powered equipment — the CEC's own example is converting gas dryers to electric dryers.
Installing industrial heat pumps that recover otherwise wasted thermal energy and recycle it for reuse within the facility.
Source: CEC GFO-26-302 Pre-Application Workshop presentation (Solicitation Manual, Section II.B.2).
Food-processing loads don't always occur when it's best to generate thermal energy. Washdown, sanitation, cooking, pasteurization and CIP cycles tend to arrive in peaks, while heat pumps run most efficiently at steady output and recovered heat is only available while the source process is running.
Thermal storage lets an engineered system create or recover thermal energy at one time and use it later — decoupling when heat is produced from when the process needs it. That can allow equipment to be sized to average load instead of peak load, and can shift electric heating away from the facility's utility peak periods.
The CEC's eligible microgrid category specifically references battery or thermal storage as potential system components. Separately, the CEC awards preference points for reducing a facility's electricity use during its utility rate peak periods.
• Industrial heat pumps generating process heat from electricity
• Recovered thermal energy from refrigeration, compressors or process exhaust
• Thermal storage — modular tanks sized to the load and the available space
• Controls that decide when to charge and when to draw
• Other eligible equipment defined by the project, such as solar PV or batteries in a microgrid
Heat pumps, recovered process heat, or other thermal sources run when conditions are best.
Insulated, water-based thermal storage holds the energy until it's needed.
Stored energy meets hot-water and process-heating demand during peaks.
Eligibility depends on the whole system. Thermal storage may be incorporated into an eligible FPIP project configuration, depending on the project design and CEC requirements. The total system configuration determines potential FPIP eligibility, and final project and equipment eligibility is determined by the California Energy Commission.
The CEC is looking for applicants with clear intentions and a build-ready path forward. Use this checklist to gauge how defined your project is today.
This is a readiness checklist, not an eligibility test. Only the CEC can determine whether a facility or project is eligible.
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FPIP applications are scored on technical merit, technical approach, and quantified impacts and benefits. Applicants submit a project narrative, scope of work, schedule, budget and the CEC's FPIP Benefits Calculator — and the estimated energy and emissions savings must match across all of them.
That means the project has to be more specific than "install a heat pump" or "add thermal storage." It needs a defined technical approach that connects today's process to a measurable result.
Which process, line or load is being upgraded — and how it operates today.
Measured electricity and fuel consumption, load profile and peak timing.
The specific system configuration that replaces or supplements what's there.
The engineering basis for changes in energy use, GHG emissions and grid impact.
How results will be measured — FPIP requires pre-installation and post-installation M&V.
We work with your facility, engineers and project team on the thermal side of the project — so the system you propose is one you can actually build.
Map hot-water and process-heating loads, operating schedules and peak timing so the project starts from real demand.
Lay out how heat sources, storage, controls and existing equipment work together — within your mechanical and space constraints.
Size storage to the load and recovery requirements using modular 350, 500 and 700 gallon Thermal Tanks that can be combined for larger systems.
Pair storage with heat pumps, recovered heat and other hydronic equipment, with piping and controls matched to the project.
Applications are screened pass/fail, then scored. A minimum of 70 of 100 points is required to be considered for funding.
Match funding of at least 25% of the FPIP funds requested, committed in signed letters submitted with the application.
Nine required attachments, including a project narrative, scope of work, schedule, budget, CEQA form and FPIP Benefits Calculator, submitted through ECAMS.
Awarded projects perform pre-installation and post-installation M&V on the equipment or systems installed.
The applicant must be an existing food-processing facility located in California, registered and in good standing with the California Secretary of State.
Applications are due December 17, 2026 at 11:59 PM. ECAMS rejects late submissions, including ones still uploading at the deadline.
Eligible and ineligible costs must be reviewed against the official solicitation manual. The CEC's workshop materials list items such as installation labor, equipment warranties and grant writing as ineligible for FPIP reimbursement.
Read the GFO-26-302 solicitation files →Questions about your specific facility or system?
The Food Production Investment Program (FPIP) is a California Energy Commission grant program that funds the implementation and demonstration of advanced energy and decarbonization technologies at California food-processing and supporting facilities. FPIP 2026 is solicited under GFO-26-302 and targets commercially available, proven technologies that reduce greenhouse gas emissions, lower energy use and support electrical grid reliability.
The CEC lists $5,000,000 in available funding for GFO-26-302, with a minimum award of $2,500,000 and a maximum award of $5,000,000. Applicants must provide match funding of at least 25% of the FPIP funds requested. Awards are competitive and not guaranteed.
Thermal storage is identified by the CEC as a possible component of an eligible microgrid: the CEC describes eligible microgrids as systems that include solar PV, battery or thermal storage, and control technologies operating as a single unit. Thermal storage does not qualify automatically on its own. Eligibility depends on the overall project configuration and the CEC’s requirements, and final project and equipment eligibility is determined by the California Energy Commission.
Eligible applicants are existing food-processing facilities located in California. The CEC identifies NAICS 311 (Food Manufacturing), 3121 (Beverage Manufacturing), 493120 (Refrigerated Warehousing and Storage) and 115114 (Postharvest Crop Activities, except Cotton Ginning). Additional food-processing support facilities may be considered. Agricultural businesses are not automatically eligible.
No. Thermal Energy HQ’s role is project and system evaluation and engineering support: thermal load review, system configuration, thermal storage sizing and heat pump or heat recovery integration. We can provide the technical information your application team needs about the thermal system. We do not prepare or submit FPIP applications, and we do not determine CEC eligibility — the California Energy Commission does.
Applications for GFO-26-302 are due December 17, 2026 at 11:59 PM and must be submitted through the CEC’s ECAMS portal. The CEC notes that ECAMS submission support is available until December 16, 2026 at 5:00 PM, and late submissions are rejected. Confirm current dates on the official solicitation page.
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