Our programs, authorized by the Agricultural Act of 2014, offer funding to complete energy audits, provide renewable energy development assistance, make energy efficiency improvements and install renewable energy systems. We have programs that help convert older heating sources to cleaner technologies, produce advanced biofuels, install solar panels, build biorefineries, and much more. USDA Rural Development is at the forefront of renewable energy financing, with options including grants, guaranteed loans and payments.
Rural Development Energy Programs
Rural Energy for America Program Guaranteed Loans
The Rural Energy for America Program (REAP) Guaranteed Loans provide guaranteed loan financing through commercial lenders to agricultural producers and rural small businesses for energy systems or to make energy efficiency improvements. These loan guarantees are available independent of grant funding.
Rural Energy for America Program Grants
The Rural Energy for America Program (REAP) Grants provide grant funding to agricultural producers and rural small businesses for energy systems or to make energy efficiency improvements. These grants are often combined with REAP Guaranteed Loans to finance eligible projects.
Rural Energy for America Program Energy Audits & Renewable Energy Development Assistance
The Rural Energy for America Program (REAP EA/REDA) programs assist rural small businesses and agricultural producers by conducting and promoting energy audits and providing Renewable Energy Development Assistance.
Rural Economic Development Loan and Grant
The Rural Economic Development Loan and Grant (REDLG) programs provide funding for rural projects through local utility organizations. USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas.
Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program
The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (9003) provides loan guarantees up to $250 million to assist in the development, construction and retrofitting of new and emerging technologies. These technologies are: advanced biofuels, renewable chemicals and biobased products.
Advanced Biofuel Payment Program
The Advanced Biofuel Payment Program (9005) provides payments to eligible entities that produce and sell advanced biofuels. The 9005 program’s goal is to increase the production of advanced biofuels to achieve energy independence through these incentive payments to advanced biofuel producers and sellers.
Biobased Markets and Development Access Grant Program
The Biobased Markets and Development Access Grants Program (BDAP) provides grants to eligible applicants to establish and validate the commercial viability of certain biobased technologies by building or operating integrated demonstration units (IDUs)– facilities that demonstrate continuous, successful production for a set period of time.
Higher Blends Infrastructure Incentive Program
The Higher Blends Infrastructure Incentive Program (HBIIP) provides grants to increase significantly the sales and use of higher blends of ethanol and biodiesel through expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure.
BioPreferred Program
BioPreferred Program is to increase the purchase and use of biobased products.