Boosting Rural Prosperity Through Renewable Energy and Efficiency

What is USDA REAP Grant?

The Rural Energy for America Program (REAP) is a U.S. Department of Agriculture (USDA) initiative designed to foster rural development by providing financial support for renewable energy systems and energy efficiency improvements. The program offers a combination of guaranteed loans and grants to agricultural producers and small businesses in eligible rural areas.

Eligibility Criteria

  • Agricultural producers with at least 50% of gross income from agricultural operations.
  • Small businesses in eligible rural areas. (See map for details)
  • Businesses must be located in rural areas with populations of 50,000 or fewer.
  • Agricultural producers can be situated in rural or nonrural areas.

REAP Grant Map over Portland, OR

Program Objectives

REAP aims to enhance rural energy sustainability by offering guaranteed loan financing and grant funding for the installation of renewable energy systems and energy efficiency upgrades. These initiatives contribute to increased energy independence, reduced energy demand, and potential cost savings for small businesses and agricultural producers.

solar panels installed on a farm in Oregon

Approved Uses of Funds

Funds can be utilized for renewable energy systems (biomass, geothermal, hydropower, hydrogen, wind, solar, ocean) and energy efficiency improvements (HVAC systems, insulation, lighting, cooling units, doors/windows, irrigation equipment).

Eligibility Criteria

  • Loan guarantees covering up to 75% of total eligible project costs.
    Grants for up to 50% of total eligible project costs.
  • Combined grant and loan guarantee funding up to 75% of total eligible project costs.

50% of the system cost up to $1MM can be covered by the REAP Grant!

Borrowing Restrictions

  • Individual borrowers must be U.S. citizens or legal permanent residents.
  • Private-entity borrowers must demonstrate that loan funds will remain in the U.S.
  • Applicants must have no outstanding delinquent federal taxes, debt, judgment, or debarment.
farm barn with solar panels on the roof

Program Oversight

The program is governed by specific regulations for grants and guaranteed loans, and it is authorized by Title IX of the Agricultural Improvement Act of 2018 and the Inflation Reduction Act of 2022.

USDA Rural Development aims to enhance American energy independence by bolstering the private sector’s supply of renewable energy and decreasing energy demand through efficiency improvements. The long-term impact includes potential cost reductions for small businesses and agricultural producers.

2024 Deadlines

  • March 31, 2024
  • June 30, 2024
  • September 30, 2024
ground mount solar system next to white barn close up

Recent Projects

See other businesses that have made the switch to solar energy!

See If REAP Works For You

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