The Rural Energy for America Program, or REAP, is operated and funded by the USDA, which assists with the cost of energy efficiency improvements and renewable energy systems. The purpose of the grant is to assist agricultural producers and rural small businesses in transitioning to renewable energy through offering guaranteed loans and grant funding. The REAP Grant is currently open, and those wishing to secure funding from the program must submit an application before March 31, 2025, to be considered for the funding. Applicants should review the information specific to their state prior to completing the application.
Who Qualifies For The REAP Grant And Guaranteed Loan Program?
All small businesses located in rural communities can apply for the REAP Grant. A rural community is defined for these purposes as a residential area with a population of under 50K. Ag producers with 50% or more of their gross income stemming from agricultural operations are also eligible for the REAP Grant. The only stipulation for these applicants is that they are in good standing with all federal taxes and have no outstanding delinquent dent, judgments, or debarment. These same businesses also qualify to seek funding via the OneRD Guarantee Loan Initiative to provide added funding for these renewable energy systems.
What Projects Can The REAP Funding Be Used For?
The funds provided by the grant and guaranteed loans can be used for a variety of renewable energy projects that include:
- Biomasses such as ethanol and biodiesel, anaerobic digesters, and solid fuels
- Geothermal systems for generator or direct use
- Hydro power systems less than 30 megawatts
- Hydrogen power
- Wind power generation
- Solar power generation
The funds can also be used for the installation of high-efficiency improvements such as:
- HVAC systems
- Insulation
- Lighting
- Cooling or refrigeration units
- Doors and windows
- Electric, solar, or gravity pumps for irrigation
- Switching from diesel to electric for irrigation motors
- Replacement of equipment deemed inefficient in its energy consumption
More About The Funding Offered
If you are seeking REAP Grant funding, please know that the amount distributed cannot exceed 50% of the total cost of the project. In the case of a guaranteed loan, the amount funded with the loan cannot exceed 75% of the total project cost. The maximum amount of any loan is determined on an annual basis and can be reviewed on the state and federal information sheets for the year of the application. The goal of the REAP Grant and loan program is to promote opportunities to increase energy independence and the use of renewable energy in the United States. These programs were specifically focused on assisting small businesses and agricultural producers in making the transition to a long-term lower cost energy solution.
Your Trusteed Energy Partners In The Future
If you are interested in taking advantage of the REAP Grant and loans, please contact Solar Group today to learn more about Harnessing the Sun and the funding available to help reduce your investment in these projects. Our staff is eager to answer your questions and assist in creating a plan to help reduce your future energy costs and impact on the planet.
