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Cook bacon in a large, deep skillet over medium heat, flipping once, until crisp, 6 to 8 minutes. Transfer to a paper towel-lined plate. Pour off and reserve all but one teaspoon bacon fat from skillet. Set aside off heat.
Meanwhile, bring 3 1/2 cups salted water to a boil in a medium pot. Whisk in grits, reduce heat to medium low and simmer until thick and tender, 6 to 8 minutes. (Some grits have different cooking times, so adjust water and cooking time as needed.)
Reheat the one teaspoon bacon fat over medium-high heat; add onion, garlic, peppers, 1/4 teaspoon of the salt and 1/4 teaspoon of the pepper and cook, stirring occasionally, until golden brown and tender, 6 to 8 minutes. Move onion mixture to one side of the skillet and add another teaspoon bacon fat. Add shrimp, season with remaining 1/4 teaspoon salt and 1/4 teaspoon pepper and cook, stirring occasionally, until just cooked through, 2 to 3 minutes. Add lemon juice and hot sauce. Toss shrimp and onion mixture together. Spoon hot grits into bowls and top with shrimp mixture. Crumble bacon over the top and serve with additional hot sauce on the side.