As the nation aims to strengthen its grid supply chain and lower electricity costs, the U.S. Department of Energy (DOE) is advancing $237 million in funding to boost domestic manufacturing of critical electric grid components.

The $237 million funding opportunity announced on Friday, part of DOE's Grid SCALED (Grid Supply Chain Alternatives to Lead Energy Dominance) program, is expected to generate roughly $125 million in annual utility savings. According to a release, the Grid SCALED initiative will also keep an estimated $50 million per year in the U.S. economy.

By reinvesting domestically, DOE aims to facilitate cost-cutting measures that increase electric grid reliability for American households and businesses, retaining funds at home that would otherwise go to foreign suppliers.

According to DOE, this funding will support projects in two key areas. The first area will provide up to $50 million to U.S. projects that promote greater refurbishment and reuse of existing grid equipment and materials. The second area of this funding effort will provide up to $187 million to projects that scale up the use of alternative materials and subcomponents sourced and made domestically, reducing dependence on foreign supply chains.

Applicants have until Nov. 20 to submit a concept paper to qualify for full application submission. Full applications are due by Feb. 8, 2027, according to DOE’s online database.

“President Trump is bringing American industry and manufacturing back home, including the critical equipment and components needed to power our nation,” said U.S. Secretary of Energy Chris Wright, in a statement. “The Energy Department is investing in American-made technologies and modernizing our grid to reduce reliance on foreign suppliers and deliver affordable, reliable electricity.”

This funding opportunity is the first major effort under DOE’s Grid Supply Chain Program. The overarching program is authorized to provide up to $375 million to reinforce domestic manufacturing for grid components, materials and both distribution and power transformers.

Due to the reliance on foreign resources for bulk-power system electric equipment, President Donald Trump stated in August that this reliance creates a supply chain vulnerability that could cause significant disruption in the U.S. As a result, many energy manufacturers have initiated production of resources domestically at scale to reduce supply chain uncertainty, accelerating the push toward Foreign Entity of Concern (FEOC) restrictions imposed by DOE in 2024.

By reducing this dependency, domestic supply chains for next-generation technologies, including solid-state transformers, aim to streamline manufacturing and lower pricing overall, directly benefiting everyday consumers.

Average monthly residential utility bills that include electricity ($188) total $409 in Q3 2026. That’s up 2.8% on an annualized basis from Q3 2025, according to a J.D. Power October report.

Electricity remains the largest utility expense reflected in the data, rising 5.6% from Q3 2025 ($178) and occupying a significant share of consumers’ recurring household expenses.

“America should never have to rely on foreign suppliers to keep the lights on,” said Office of Electricity assistant secretary Katie Jereza. “We’re putting American ingenuity to work, developing next-generation grid technologies that strengthen our domestic supply chain, help lower costs and make our grid more reliable. The power to secure our energy future should be in our own hands.