The Rural Energy for America Program, or better known as the USDA REAP Grant, provides grant funding and guaranteed loan financing to rural small businesses and agricultural producers across the United States, to be used for implementing renewable energy systems or making improvements to overall energy efficiency.
The goal of this program is to increase energy independence in the United States by generating a higher supply of clean energy in the private sector while simultaneously decreasing energy needs. Their hope is that over time, these efforts may reduce energy costs overall for agricultural producers and rural small businesses.
REAP Program Objective
- REAP offers guaranteed loan financing and grant funding to agricultural producers, rural small for-profit businesses, co-ops, and tribal businesses.
- The program aims to support the purchase or installation of renewable energy systems (RES) and energy efficiency improvements (EEI) projects.
REAP Eligibility:
- Agricultural producers may be in rural or non-rural areas.
- Agricultural producers with at least 50% of gross income coming from agricultural operations an eligible for REAP funding. Agricultural producers may be in either rural or non-rural areas
- •Small businesses and rural electric cooperatives in eligible rural areas
- Businesses must be in located in rural areas with populations of 50,000 residents or less. Check eligible business addresses.
USDA REAP can be used for a non-farming business. Stores, automotive shops, mills, manufacturing, Hotels etc. As long as the business is located in a USDA-Defined Rural Area:
USDA Eligibility Map to see if a project location is eligible.
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
REAP Program was expanded in 2022: Updated under the Inflation Reduction Act, which increased the grant amount and made it more accessible to a wider range of businesses.
The application scoring criteria have changed slightly for the rounds in 2024. The application will be evaluated and ranked based on the following:
- Environmental Benefits: 5 points if the project has a positive effect on resource conservation, public health, and/or the environment.
- Energy Generated, Replaced, or Saved: 25 points depending on how much or how much percentage of energy generated, replacing, or saving.
- Commitment of Funds 15 points: The higher the percentage of funding for the project you have, the more points the project receive.
- Previous Grantees and Borrowers 15 points: Most points to projects that never received the grant. Project receives none if it received this grant less than two years ago.
- Existing Business 5 points if you meet the definition of an existing business.
- Simple Payback 15 points: The shorter the system’s payback, the higher the points.
- Size of Request (10 points if grant request is 250,000 or less for RES or $125,000 or less for EEI
- State Director and Administrator Priority Points 10 additional points depending on veteran status, socially or economically disadvantaged status, the type of technology used, geographic diversity, and more.
Support The Work + Power the Stream
Value-4-Value V4V
If you find the work valuable we appreciate all forms of support!
It provides resources for more analysis on Solar + Storage Micro-Grids, Agrivoltiacs, Mobile systems, EV Charging, all the Freedom Tech.
We are the Decentralized Web!
Web 3.0
Attention Is Powerful Currency!
Every Like, Love, Share, Repost, and Subscription, is Digital value.
Support our media network across multiple channels. We stream on many platforms supporting a more decentralized, open-source, Free Speech Internet. Enjoy us on your favorite but we invite you to join us on other platforms to deepen our network and share the message with more communities