Lower Your Energy Costs
LOWER YOUR ENERGY COSTS AND BOOST YOUR BOTTOM LINE
Through the Rural Energy for America Program (REAP), United States Department of Agriculture (USDA) Rural Development helps finance the cost of renewable energy systems and energy efficiency improvements for rural small businesses and agricultural producers. A variety of energy projects may qualify for REAP financial assistance to help you purchase, install, and construct energy projects.
Reduce your utility bills with energy efficiency improvements.
- Install efficient lights and equipment with customizable controls to lower your electrical use. Many newer light systems also generate less heat and reduce cooling costs while improving lighting.
- Lower your heating and cooling costs with equipment upgrades, insulation, programmable thermostats, and airtight windows, doors, and ducts.
POWER YOUR BUSINESS, FARM, OR RANCH WITH CLEAN ENERGY
Or sell renewable power to the grid for extra income
- Depending on where your business or farm is located, solar panels could offset much of your operation’s energy costs.
- If you have enough wind and space—and if local zoning regulations permit—a small wind turbine could help you reduce energy costs.
- Small hydropower systems (less than 30 megawatts) transform the energy of flowing water into electricity.
- With a geothermal system, underground reservoirs of hot water can be channeled to the surface to heat buildings or generate electricity.
- An anaerobic digester breaks down animal waste such as cow manure and other organic materials into biogas that can fuel vehicles or be used to generate electricity and heat.
- Renewable biomass such as crops, wood, and plants, as well as biodegradable wastes such as fats, oils, and other materials can be converted into heat or biofuel.
WHAT FUNDING IS AVAILABLE?
Grant: REAP grants may cover up to 25 percent of a project’s eligible costs.
Renewable energy systems: $2,500 minimum grant request; $500,000 maximum grant request.
Energy efficiency projects: $1,500 minimum grant request; $250,000 maximum grant request.
Loan Guarantee: With REAP, USDA Rural Development may guarantee up to 85 percent of a commercial loan to help you access affordable financing for your energy project. Rates and terms are negotiated between you and your lender, subject to USDA approval.
Combination Guarantee and Grant: You may combine REAP grant and loan guarantee assistance to cover up to 75 percent of eligible project costs.
WHAT ARE THE LIMITATIONS?
REAP does not support residential energy projects, agricultural tillage equipment, used equipment, vehicles, or grant writing assistance. In addition, REAP does not fund research and development. To qualify, project technology must be commercially available.
IS REAP RIGHT FOR YOU?
If you can answer YES to these three questions, your project may be eligible for USDA Rural Development REAP assistance.
- Earn at least 51 percent of your income from farming or ranching? OR
- Operate a privately owned, for-profit small business located in a rural area or town of 50,000 people or less?
* For more information about eligible areas for rural small businesses, visit the USDA Income and Property Eligibility Website Rural Energy for America