The deadline for Rural Energy for America Program $20,000 or less grants is Nov. 2. This program provides grant funding to small rural businesses in eligible areas and agricultural producers with at least 50 percent of gross income coming from agricultural operations.
“This program is a great way for our farmers and small, rural businesses to drastically cut utility costs through cost-saving energy upgrades,” said Chris Kanazawa, USDA Rural Development State Director for Hawaii and the Western Pacific. “Clean energy not only reduces our dependency on fossil fuels, but strengthens the capacity for our local agricultural producers and businesses to be competitive due to decreased operating costs.”
Grants cover up to 25 percent of the total cost of the project. A combined grant and loan guarantee up to 75 percent of the total cost for eligible renewable energy systems and energy efficiency improvements.
Renewable energy systems may include wind, solar, ocean, small hydropower, hydrogen, geothermal and renewable biomass (including anaerobic digesters).
Energy efficiency improvements eligible for REAP funding include lighting, heating, cooling, ventilation, fans, automated controls and insulation upgrades that reduce energy consumption.
While the next deadline for grants $20,000 or less is approaching, applications are accepted continuously for unrestricted grants and loans with a maximum grant amount of $500,000 and a $25 million maximum loan amount per applicant.
The REAP program was created in the 2002 Farm Bill. Because of the success of the program, Congress reauthorized it in the 2014 Farm Bill with guaranteed funding of no less than $50 million in annual funding for the duration of the five year bill.
Since 2009, USDA has awarded $545 million for more than 8,800 REAP projects nationwide. This includes $361 million in REAP grants and loans for more than 2,900 renewable energy systems. When fully operational, these systems are expected to generate more than 6 billion kilowatt hours annually – enough to power more than 5.5 million homes for a year.
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. President Obama and Agriculture Secretary Vilsack are committed to a smarter use of federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.