The funding will be used to determine the technical feasibility, economic viability and environmental sustainability of the underground thermal energy at sites in Fife, West Lothian, North Lanarkshire and Aberdeenshire, for use as a renewable heat source at homes and businesses.
Geothermal Energy Expert Group chair Professor Russel Griggs said: "The technology still requires further development, but these five feasibility projects, which trial new ideas and build on more established techniques, are a vital step along the road to fully utilising this potentially extremely valuable resource."
Scotland Energy Minister Fergus Ewing said: "These projects will help improve our understanding of this renewable energy source and the contribution it can make to helping Scotland reduce its carbon emissions."
The awards have been issued through the Scottish government’s Geothermal Energy Challenge Fund, which is supported by the Low Carbon Infrastructure Fund.
The projects are also expected to evaluate the geothermal sources’ potential to save £2.6bn annually.
The Scottish Government estimates that heat will account for over half of the energy use, and also responsible for nearly half of the country’s greenhouse gas emissions.
The Renewable Energy Association external affairs head James Court said: "Our research estimates that with the right policy framework and support in place, deep geothermal could produce up to 100GW of renewable heat – as much as the UK’s annual heat demand."