New Expanded Grant Program Supporting the Energy Needs of Rural America

The Rural Energy for America Program (REAP) is a federal program administered by the United States Department of Agriculture (USDA). It provides financial assistance and technical support to agricultural producers and rural small businesses for installing renewable energy systems, making energy efficiency improvements, and performing energy audits.

The program is designed to help rural communities with populations of 50,000 residents or less:

  1. Reduce energy costs
  2. Promote energy efficiency
  3. Develop renewable energy resources

REAP grants and loans can be used for a variety of projects, such as solar panel installations, wind turbines, energy-efficient lighting, and HVAC upgrades. The program also provides funding for feasibility studies and energy audits to help rural businesses and agricultural producers assess their energy use and identify opportunities for energy savings.

Available funding includes:

  1. Guarantees on loans up to 75 percent of total eligible project costs.
  2. Grants for up to 50 percent of total eligible project costs.
  3. Combined grant and loan guarantee funding up to 75% of total eligible project costs.

REAP Benefits

REAP offers several benefits to rural communities, agricultural producers, and small businesses. Even non-profits like schools may be able to benefit:

  • Cost savings: REAP funding can help offset the upfront costs of renewable energy and energy efficiency projects, helping rural businesses and agricultural producers save money on their energy bills over time.
  • Environmental benefits: By promoting the use of renewable energy and energy efficiency, REAP helps reduce greenhouse gas emissions and supports the development of clean energy resources.
  • Economic development: REAP funding can help rural communities attract new businesses and industries, as well as create jobs in the renewable energy and energy efficiency sectors.
  • Improved energy security: By promoting the use of renewable energy, REAP helps reduce dependence on fossil fuels and foreign oil, increasing energy security for rural communities.
  • Technical assistance: In addition to funding, REAP provides technical assistance and support to help rural communities and businesses identify energy efficiency opportunities and navigate the application process.

How REAP Works

REAP provides funding through a combination of grants and loans that can be combined with the investment tax credit (ITC), a 30 percent tax credit for rural businesses and farms installing solar systems on their property (under Section 25D of the tax code). Here’s how the program works:

  • Eligibility: Applicants must meet certain eligibility requirements to be considered for REAP funding. This includes being located in a rural area, having a project that meets the program’s energy efficiency or renewable energy requirements, and having the financial resources to contribute a portion of the project costs.
  • Application: Applicants submit an application for funding, which includes information about the proposed project, such as the type of renewable energy system or energy efficiency upgrade being installed, the estimated cost, and the expected energy savings or production.
  • Review: Applications are reviewed by USDA staff to ensure they meet program requirements and to evaluate the potential impact of the project on the community, the environment, and the economy.
  • Award: Successful applicants receive funding in the form of a grant, loan, or a combination of both, to cover a portion of the project costs.
  • Project implementation: Once funding is awarded, the applicant can begin implementing the project, which may involve installing a renewable energy system, upgrading equipment to improve energy efficiency, or conducting an energy audit to identify opportunities for energy savings.
  • Reporting: Recipients of REAP funding are required to submit periodic progress reports and documentation to demonstrate that the project is meeting its goals and objectives.

For over 35 years, the BAI Group has provided technical consulting services to private and public entities typically involved with environmental development projects. The services we traditionally provide our clients include studies, designs, permit applications, construction management/CQA along with other compliance monitoring and reporting activities. Contact us today for a cost-effective approach to your renewable energy system needs.