Rural Energy for America Program (REAP) Renewable Energy Systems and Energy Efficiency Improvements Grants and Guaranteed Loans

State Rural Development Energy Coordinator(s)

The REAP Renewable Energy System Grant and Loan Guarantee program provides financial assistance to agriculture producers and rural small businesses to purchase, install, and construct renewable energy systems or energy efficiency improvements.

Funds may be used for the purchase, installation and construction of 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

Rural small businesses and agricultural producers are eligible to apply.

A list of specific requirements can be found on the program website.

Available funding:

• Loan guarantees on loans up to 75% of total eligible project costs
• Grants for up to 50% of total eligible project costs
• Combined grant and loan guarantee funding up to 75% of total eligible project costs

For lenders, USDA will guarantee 80% of eligible loans.

Links to additional guidance and the application instructions are available on the program website.

Applicants should contact their State Rural Development Energy Coordinator to begin the application process.