The Rural Energy for America Program (REAP), is a program that helps agriculture producers and businesses reduce their energy usage and improve their profitability through grants and/or guaranteed loans. Assistance is available for energy efficiency improvements and renewable energy systems.
REAP grants are available for up to 25% of the total eligible project costs. Minimum total project costs for energy efficiency improvement projects is $6,000 (grant $1,500); renewable energy is $10,000 (grant $2,500). Maximum total project costs for energy efficiency projects is $1 million (grant $250,000); renewable energy is $2 million (grant $500,000).
Through the REAP loan guarantees, USDA Rural Development may guarantee up to 85 percent of a commercial loan. Rates and terms are negotiated with the lender, and are subject to USDA approval. Loan assistance may cover up to 75 percent of eligible project costs. Maximum loan amount is $25 million. Lender benefits include mitigating risk, expanding portfolio, and secondary market sales. Funds are available year round for the guarantee program.
Energy efficiency projects that help reduce the business or farm operation energy usage may apply. Projects funded in Nebraska include: upgrading coolers and freezers in grocery stores, upgrading lighting, adding insulation, replacing windows and doors and replacing heating, ventilation and cooling units, converting gravity to pivot or sub-surface drip tape irrigation systems, converting diesel/natural gas/propane engines to electric motors, installing variable frequency drives on electric motors, upgrading grain dryers.
Renewable energy can be used for energy replacement or energy generated and sold to the power grid. Projects funded in Nebraska include: wind turbines to power center pivots, solar panels for stock wells, solar panels for businesses, geothermal heating and cooling, and a biodiesel plant that converted waste vegetable oil into biodiesel.
Please note: Personal residences are not eligible.
REAP applications must be received by May 2, 2016 and must be on file with Rural Development prior to any costs being incurred on the project. REAP guaranteed loans compete monthly. If you have questions about the REAP grant and would like to see if your project would qualify, please contact Jeff Carpenter at 402-437-5554 or email at jeff.carpenter@ne.usda.gov. We are here to help you through the application process!
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.