WASHINGTON, D.C. — The USDA’s Rural Energy for America Program (REAP) competitive grant for farmers and rural businesses offers guaranteed loans and partial funding for a variety of projects that can help save energy dollars over the long term.
Grant applications for projects under $20,000 are due Nov. 2.
"There is untapped potential for farmers and agribusiness owners to use solar energy to save on electricity costs," said Mark Olinyk, president and CEO of Harvest Energy Solutions of Jackson, Mich. "The USDA’s REAP grant can significantly shorten the payback time in their solar energy system."
To be eligible, agricultural producers must obtain at least 50 percent of their gross income from farming and agricultural operations. Small businesses must be in eligible rural areas.
More than $280 million is available to eligible applicants through the program. USDA offers grants for up to 25 percent of total project costs and loan guarantees for up to 75 percent of total project costs on renewable energy systems and energy efficiency improvements.
Project eligible to receive grant and guaranteed loan funding include installation of wind, solar, ocean, small hydropower, hydrogen, geothermal and renewably biomass systems. Technology for the systems must currently be commercially available. Energy efficiency improvement grants and loan guarantees are also available.
"The most important message I am currently trying to communicate with farmers is that this is a competitive – some would argue very competitive – grant process," said Eric Romich, in ag extension energy development at The Ohio State University.
"The USDA REAP grant is a great program that has helped many Ohio farmers and small businesses develop renewable energy systems or make energy efficiency improvements."
He said photovoltaic solar system installations are the most frequently installed system among grant recipients in Ohio.
According to the REAP section of the USDA website, since 2009 more than 8,800 projects have been implemented through $545 million in grant funds. When fully operational, these systems are expected to generate more than 6 billion kilowatt hours annually, which is enough to power more than 5.5 million homes for a year.
For more information on eligible projects, applications and how the grant works, visit the website at http://1.usa.gov/1AlJtoH
