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USDA REAP Grants and Loans - What to Know

  • Melissa Deaver
  • Oct 12, 2023
  • 2 min read

There are many government funded opportunities to save on your solar array. Most people are familiar with the Federal Tax Credit, available to anyone (homeowner or business) installing a new array. Did you know there are also grants available to specific borrowers? The USDA has one grant that can pay for up to 50% of the total cost on your array! Here are the details of the grant.


What This Program Does

  • This program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

  • Agricultural producers can also apply for new energy-efficient equipment and new system loans for agricultural production and processing.


Eligibility Requirements

  • Rural small businesses and agricultural producers are eligible for the grant (there's a lot of us in Iowa!). USDA Rural development programs are included in the OneRD Guarantee Loan initiative. Click here for more information on this loan opportunity.

  • Individual borrowers must be US citizens

  • Private-entity borrowers must show that loan funds will be

  • Businesses must be located in rural areas with populations of 50,000 or fewer. Eligible business addresses can be verified here.

  • Agricultural producers can be in rural or nonrural areas.




How Can the Funds be Used?

  • Funds can be used for renewable energy systems such as:

  • Biomass

  • Geothermal for electric generation or direct use

  • Hydropower below 30 megawatts

  • Hydrogen

  • Small and large wind generation

  • Small and large solar generation

  • Ocean generation

  • They can also be used for energy efficiency programs like:

  • High-efficiency HVAC systems

  • Insulation

  • Lighting

  • Cooling or refrigeration units

  • Doors and windows

  • Electric, solar, or gravity pumps for sprinkler pivots

  • Switching from diesel to electric irrigation motor

  • Replacement of energy-inefficient equipment

Agricultural producers can also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.


What Types of Funding are Available?

  • Loan guarantees on loans up to 75% of total eligible project costs

  • Grants for up to 50% of total eligible project costs

  • Combine grant and loan guarantee funding up to 75% of total eligible project costs

Interested?


Applications are accepted year-round in your local USDA Rural Development office. Click here to find a list of state offices.


Questions?


Reach out to your state-based USDA Rural Development Energy Coordinator. Click here to find a list.


For more in-depth information about this program in Iowa click here.


 
 
 

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