USDA’s Rural Energy for America Program (REAP): What To Know

At a Glance


The Department of Agriculture (USDA) has announced that applications for the Rural Energy for America Program (REAP) Grant is open for fiscal year 2023. Below is a brief summary of the program to assist in determining if a project is eligible to apply.

Who is eligible?

  • Small businesses in communities with populations of 50,000 or less
  • Agricultural producers who earn at least 50% of gross income from farm operations

What can funds be used for?

  • Renewable energy systems, such as:
    • Biomass (biodiesel, ethanol, anaerobic digesters, solid fuels, etc.)
    • Geothermal 
    • Hydropower below 30 megawatts
    • Wind generation
    • Solar generation
    • Ocean generation
  • Energy efficiency improvements, including:
    • High-efficiency HVAC
    • Insulation
    • Lighting
    • Cooling or refrigeration units
    • Doors & windows
    • Electric, solar, or gravity pumps for sprinkler pivots
    • Switching from a diesel to an electric irrigation motor
    • Replacing energy-inefficient equipment


  • Up to 40% of eligible project costs
  • Renewable Energy Systems funding ranges from $2,500 to $1 million
  • Energy Efficiency funding ranges from $1,500 to $500,000


  • Up to 75% of eligible project costs

Note: Combined grants and loans can fund up to 75% of eligible project costs.

How do I apply?

Applications are accepted year-round. Please reach out to your local Rural Business-Cooperative Service State Energy Coordinator

Funding requirements

  • Subject to NEPA review process
  • No outstanding delinquent federal taxes, debt, judgements, or debarment
  • Used equipment purchases are not eligible
  • Energy Efficiency projects require an energy audit or assessment
  • Funds must remain in the U.S.


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