Preheat grill to medium heat, about 375–400°F, for indirect cooking.
Scrub potatoes and dry well. Pierce each potato several times with a fork.
Toss potatoes with olive oil, salt, pepper, garlic powder, and paprika to coat evenly.
Wrap each potato tightly in heavy-duty foil, sealing the seams well.
Place potatoes over indirect heat. Close lid and grill 50–65 minutes, turning halfway.
Check doneness by sliding a skewer through the center; it should glide easily.
Unwrap and move to direct heat for 3–5 minutes to crisp the skins, if desired.
Split potatoes, fluff with a fork, and top with butter, cheddar, sour cream, chives, and bacon.