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The U.S. Department of Agriculture's Rural Energy for America Program (REAP) offers loans and grants for Renewable Energy Systems and Energy Efficiency Improvement Projects.

The USDA offers a number of residential and commercial programs. This page highlights only the energy focused efforts. For more information about this and other USDA programs to assist rural areas, visit their website at https://www.rd.usda.gov.

What does this program do?
Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

Who may apply?

  • Agricultural producers with at least 50% of gross income coming from agricultural operations, and
  • Small businesses in eligible rural areas.

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

What is an eligible area?

  • Businesses must be in an area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town. 
  • Agricultural producers may be in rural or non-rural areas.

How may the funds be used?
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

You can find out more about these federal loans and grants and other federal rural programs by visiting the USDA website.