Grants Available to Growers for Energy Projects

Josh McGillAgriculture, Industry News Release

The U.S. Department of Agriculture (USDA) is accepting applications for $1 billion in grants to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the grants available under the Rural Energy for America Program (REAP), with funding from the Inflation Reduction Act.


“Supporting renewable energy and energy-saving systems helps the people of rural America create thriving, livable communities,” Agriculture Secretary Tom Vilsack said.

Recipients may use REAP funds to install renewable energy systems or to make energy-efficiency improvements. USDA will hold competitions quarterly through Sept. 30, 2024. REAP will also include the creation of the first underutilized technology fund, with $144.5 million available in dedicated funding.

USDA is particularly interested in projects that will help rural communities recover economically through more and better market opportunities and improved infrastructure, reduce climate pollution and increase resilience to the impacts of climate change, conserve and protect farmland, and invest in underserved communities.

To ensure that small projects have a fair opportunity to compete for the funding, USDA will set aside at least 20% of the available funds until June 30 of each year for grant requests of $20,000 or less, including the grant portion of a combined grant and guaranteed loan request.

The maximum federal share which may be requested is up to 50% of the total project cost for all energy-efficiency projects and zero-emissions renewable energy systems. An award of up to 50% of the total project cost is also available for any project in a designated energy community and/or submitted by an eligible tribal entity. All other projects are eligible to apply for grants of up to 25% of the total project cost. The maximum grant is $1 million for renewable energy systems and $500,000 for energy-efficiency projects.

For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.

Source: USDA