Rural small business owners and agricultural producers contemplating energy efficiency improvements or renewable energy investments may be eligible for financial support through the Rural Energy for America Program (REAP).
With grants covering up to 25% and loan guarantees covering up to 75% of eligible project costs, REAP makes it more affordable for business owners and producers to purchase and install energy-efficient equipment or renewable energy systems to help lower costs and reduce their environmental impact.
As the Sept. 30 deadline for REAP applications approaches, interested farmers, ranchers, and rural business owners should consider whether they might be eligible. Previous recipients include rural grocery stores, banks, dairies, manufacturing plants, and farms with energy-intensive operations, such as irrigation, grain drying, or heating and cooling.
To qualify for REAP funding, agricultural producers must earn at least 50% of their income from farming or ranching, while small businesses must be located in rural areas with fewer than 50,000 people and meet size standards based on employee count or revenue. Eligible projects include the purchase and installation of solar panels, wind turbines, and biomass or geothermal systems; upgrading heating and cooling systems; improving insulation; installing energy-efficient lighting; and modernizing irrigation or grain drying equipment.
REAP funds cannot be used for projects connected to personal homes. Energy generated must be used by the business, or a second meter must be installed to separate residential use. Additionally, costs paid before the application is completed are not eligible for reimbursement.
With the upcoming deadline, potential applicants should gather the necessary documentation and consult with a USDA Rural Development office for guidance. To find your state office, visit rd.usda.gov/about-rd/offices/state-offices.
The Heartland Environmental Justice Center also offers assistance with REAP applications. Contact them at [email protected] or visit heartlandej.org.
