
USDA Rural Development is seeking applicants for the Rural Energy for America Program (REAP). The next application deadline is rapidly approaching and is for projects requesting grants of up to $500,000.
The EIM deadline for receiving customer’s REAP information is February 15, 2021.
In brief, this program is designed to assist rural, small, for-profit businesses and agricultural producers install renewable energy systems or make energy efficiency improvements to their operations. These types of improvements can help eligible applicants control energy costs and improve the overall profitability of their operations. The grant program can cover up to 25% of the eligible project costs or $500,000, whichever is less. The loan guarantee can cover up to 75% of the eligible project costs. Federal participation cannot exceed 75% of eligible project costs.
Grants can range from $1,500 to $500,000 with loan guarantees up to $25,000,000.
Applications requesting only the REAP loan guarantee are received, reviewed and processed on a continual basis throughout the fiscal year.
In previous years, this program has helped farmers replace grain dryers; replace diesel pumps with electric motors; fans and lights for livestock operations. Small businesses have benefited through high-efficiency lighting; improvements to HVAC systems; and the installation of a renewable energy system to help offset electrical consumption. Pumps from Single Phase Power Solutions qualify for up 75% off through the program.
Residential renewable energy projects or energy efficiency improvement projects are not eligible for this program.
Additional information can be found at: Rural Energy for America Program.
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