USDA REAP Program

USDA REAP Program

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USDA REAP Grant Overview


The Rural Energy for America Program (REAP) is a grant and loan program offered by (USDA) to help agricultural producers and rural small businesses invest in renewable energy systems. The program aims to reduce energy costs, increase energy independence, and support the use of renewable energy in rural areas.


The REAP program offers two types of funding:


  1. Grants: These are funds provided to eligible applicants to cover a portion of the project costs. The maximum grant amount is 50% of the total eligible project costs.
  2. ~$1,000,000 benefit
  3. Loan guarantees: These are loans provided by lenders and guaranteed by the USDA. The loan guarantee can cover up to 75% of the total eligible project costs.


Eligible applicants for the REAP program include:


  • Agricultural producers who derive at least 50% of their gross income from farming operations.
  • Rural small businesses that are located in rural areas and have fewer than 50 employees.


Eligible projects for the REAP program include:


  • Renewable energy systems
  • Wind
  • Solar
  • Biomass
  • Geothermal
  • Small hydroelectric systems


  • Energy efficiency improvements
  • Lighting upgrades
  • Insulation
  • HVAC system improvements


The application process for the REAP program involves the following steps:


Determine eligibility:

  • We recommend first checking with the local USDA office to see if this project meets the program's eligibility criteria.


Prepare a project proposal:

  • Develop a detailed project proposal that includes
  • Information on the proposed renewable energy system.
  • Including estimated costs and expected energy savings.
  • Information on the proposed energy efficiency improvement.
  • Including estimated costs and expected energy savings.


Submit an application:

  • Submit your application to the USDA Rural Development office in your area.
  • Applications are accepted during two open periods each fiscal year.
  • The USDA is currently accepting applications until March 21, 2024.


Review and approval:

  • The USDA will review your application and determine if it meets the program requirements.
  • If your application is approved, you will receive a grant or loan guarantee to help fund your project.
  • 30-60 days to receive the grant.


References:


USDA Program Site: REAP Grant Program

USDA Rural Eligibility Map: USDA Eligibility Map

SAM.GOV Overview: SAM.GOV

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