USDA Funding Available for Energy Projects

The USDA Rural Energy for America Program (REAP) is providing grants and guaranteed loan financing for renewable energy systems up to $1,000,000 and for energy efficient improvements up to $500,000. Eligible applicants are agricultural producers whose income is at least 50% derived from agricultural operations and rural small businesses that meet Small Business Association’s size standards in an area with a populations of 50,000 residents or less. Rural eligibility can be confirmed on this interactive map: here.

Examples of projects funded include energy systems of wind and solar generation, biomass, geothermal, hydropower and hydrogen. Funds can be used to improve energy efficiency of HVAC, insulation, refrigeration units, doors, window, solar or gravity pumps, and electric motors.

The competitive applications are being accepted until September 30, 2024 and are scored quarterly against same state applicants of the same category. Rewards are taxable income reported on a 1099G.

To apply for REAP funds or view the scoring rubric and other frequently asked questions about REAP, you can visit your local USDA office’s website: here.

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