The Renewable Energy Systems and Energy Efficiency Improvement Assistance provides grants and loans to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements to their operations. This program helps increase American energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy costs for small businesses and agricultural producers.
Eligible renewable energy systems for REAP provide energy from: Wind, solar, renewable biomass (including anaerobic digesters), small hydro-electric, ocean, geothermal, or hydrogen derived from these renewable resources. In FY2022, applications were accepted under the following program areas:
- Renewable Energy System Grants: 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.
- Small and large wind generation.
- Small and large solar generation.
- Ocean (tidal, current, thermal) generation.
- Energy Efficiency Grants: Funds may be used for the purchase, installation and construction of energy efficiency improvements, such as:
- High efficiency heating, ventilation and air conditioning systems (HVAC).
- 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.
NOTE: Energy efficiency projects require an energy audit or assessment.
None is available.
Projects greater than $200,000 require a technical report. Energy efficiency projects require an energy audit or assessment. For more information, contact your State Rural Development Energy Coordinator at https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.