SOLAR

The Rural Energy for America Program (REAP), administered by the U.S. Department of Agriculture (USDA), offers financial assistance to agricultural producers and rural small businesses for renewable energy systems, including solar energy installations, and energy efficiency improvements.

KEY FEATURES OF THE REAP GRANT

Funding Amounts

Grants:
Cover up to 50% of total eligible project costs, with renewable energy system grants ranging from $2,500 to $1 million.Guaranteed

Loans:
Available for up to 75% of total eligible project costs, with loan amounts between $5,000 and $25 million.

Eligibility:

• Agricultural Producers: Individuals or entities directly engaged in agricultural production, with at least 50% of their gross income derived from such operations.
• Rural Small Businesses: Businesses located in eligible rural areas, meeting the Small Business Administration’s size standards.

Application Deadlines:
The USDA accepts applications for REAP funding in cycles. For Fiscal Year 2025, applications for Farm Bill funding are accepted through March 31, 2025. It’s advisable to check the latest deadlines and program details on the USDA’s official website or contact your state USDA office for the most current information.

APPLICATION PROCESS

Prepare Documentation:
Ensure you have a Data Universal Number System (DUNS) number and are registered with the System for Award Management (SAM). These registrations are free but can take time, so initiate them well in advance.

Develop Project Proposal:
Outline the scope, costs, and expected energy savings of your proposed project.

Submit Application:
Complete the application forms and submit them to your state USDA office by the specified deadline.

Additional Incentives:
The REAP grant can be combined with other federal, state, and local incentives, such as the Investment Tax Credit (ITC), which offers a 30% credit for solar energy systems. Combining these incentives can significantly reduce the net cost of your project.

CONSIDERATIONS

Project Readiness:
Projects should utilize commercially available technology and demonstrate technical merit. Energy efficiency projects require an energy audit or assessment.

Funding Limitations:
Applicants must provide at least 25% of the project cost if applying for a grant, or 25% if applying for a loan or loan/grant combination.