A Pearl City business will soon see decreased energy bills thanks to a $384,918 Rural Energy for America Program Loan/Grant combination. The Patisserie, a local wholesale bakery, has seen steady expansion since its start nearly 50 years ago and with growth, comes a rise in energy consumption and expenses.
“As the most oil dependent state in the nation, the transition to renewable energy alternatives makes long term economic sense for Hawaii’s businesses, and supports Governor [David] Ige’s vision of Hawaii becoming energy self-sustaining,” said Chris Kanazawa, USDA Rural Development State Director for Hawaii and the Western Pacific. “Throughout the past year, Rural Development has assisted the financing of $2.3 million in renewable energy projects for Hawaii’s businesses, farmers, and ranchers.”
Through this USDA program, The Patisserie will incorporate a 172,000 kWh photovoltaic system replacing 37.64 percent of their energy consumption with an estimated savings of nearly $5,000 a month.
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.
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.