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.)
- Hydropower below 30 megawatts
- Wind generation
- Solar generation
- Ocean generation
- Energy efficiency improvements, including:
- High-efficiency HVAC
- 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.
- 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.