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

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

Grants

• 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

Loans

• 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.