USDA Rural Development REAP Program

USDA Rural Development's Rural Energy for America Program (REAP) administers grants, guaranteed loans, and combination grant/guaranteed loans to help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements. Originally established in Section 9006 of the 2002 Farm Bill, the program was re-authorized in the 2014 Farm Bill. If a farm operation does not meet the program definition of an agricultural producer, it may apply as a rural small business, provided that it meets the applicable SBA standard.

Successful USDA REAP Project Video from USDA Rural Development

Who is eligible?

Agricultural producers with at least 50 percent of their gross income coming from agricultural operations.
Small businesses in eligible rural areas.

NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment or debarment.

See if you are located in a rural eligible location.

Agricultural producers may be in rural or non-rural areas.

How much are the grants?

The grants are awarded on a competitive basis and can be up to 40% of total eligible project costs. Grants are limited to a max of $1 milion for renewable energy systems and $500,000 max for energy efficiency improvements (New FY 2023). Grant requests min is $2,500 for renewable energy systems and $1,500 for energy efficiency improvements.

What types of projects are eligible?

Most rural projects that reduce energy use and result in savings for the agricultural producer or small business are eligible as energy efficiency projects. These include projects such as retrofitting lighting or insulation or purchasing or replacing equipment with more efficiency units. Eligible renewable energy projects include projects that produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The projects can produce any form of energy including, heat, electricity, or fuel.

For all projects, the system must be located in a rural area if applying as a small business, must be technically feasible, must meet environmental requirements, and must be owned by the applicant. For Renewable Energy Projects no residential use can benefit from the system, business only.

Funds may be used for renewable energy systems, such as:

Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels)
Geothermal for electric generation or direct use
Hydropower below 30 megawatts
Hydrogen
Small and large wind generation
Small and large solar generation
Ocean (tidal, current, thermal) generation

Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:

High efficiency heating, ventilation and air conditioning systems (HVAC)
Insulation
Lighting
Cooling or refrigeration units
Doors and windows
Electric, solar or gravity pumps for sprinkler pivots
Switching from a diesel to electric irrigation motor
Replacement of energy-inefficient equipment

REAP Guaranteed Loan Program

For more information about the REAP Guaranteed Loan Program please contact:

Jacob Charette, Energy Coordinator
Rural Development - MA/CT/RI
United States Department of Agriculture
Email: jacob.charette@usda.gov
Phone: 413-253-4305

REAP Summary

How much assistance can be provided?

Grant: up to 40% (max) of total eligible costs
Guaranteed Loan: up to 75% of total eligible project costs
Combination grant and guaranteed loan: funding up to 75% of total eligible costs

Minimum grant amounts:

Renewable Energy projects: $2,500
Energy Efficiency projects: $1,500

Maximum grant amounts:

Renewable Energy projects: $1,000,000
Energy Efficiency projects: $500,000

What is the maximum amount of a loan guarantee?
The loan guarantee percentage is published annually in a Federal Register notice.

Are there additional requirements?

Applicants must provide at least 60% of the project cost if applying for a grant only.
Applicants must provide at least 25% of the project cost if applying for loan, or loan and grant combination.
Some projects greater than $200,000 require a technical report.
Energy efficiency projects require an energy audit or assessment.

You can find application forms available on the USDA Rural Development REAP Page.