The USDA REAP (Rural Energy for America) Grant has received significant updates in 2023. These updates offer increased opportunities and resources for farms and small businesses in rural areas to embrace renewable energy and energy efficiency projects.
The Inflation Reduction Act of 2022 invested over $2 billion for renewable energy systems and energy efficiency improvement through the REAP Grant. This is the largest investment in clean energy in America’s history, which is an essential opportunity for agricultural producers and rural small business owners through 2031.
Major Changes to the USDA REAP Grant.
- Grant Percentage Increase from 25% to 50% of the project costs
- Increase to Maximum Grant Funds from $250,000 to $1 Million
- Additional Application Cycles to 4 times annually
The maximum grant funding available per project has doubled from 25% to 50%. When coupled with the 30% Investment Tax Credit and depreciation, renewable energy projects can be offset by 70-90%. There was also a significant increase in the maximum grant funding available from 25% to 50% of the project costs. The funding cycle has increased to 4 times per year. Historically, this opportunity was only available two times per year and only once a year for larger projects.
Eligibility, Guidelines, and Deadlines
Eligibility:
- Small businesses in eligible rural areas
- Agricultural producers with at least 50 percent of their gross income coming from agricultural operations
- Businesses must be located in rural areas with populations of 50,000 or fewer. You can check our database of eligible business addresses at this link: Eligibility
- Agricultural producers can be located in rural or non-rural areas.
Most of Jackson County and Josephine County qualify as rural areas; the only area not qualifying for small businesses is inside the Medford city limits. Agricultural producers include individuals or entities generating over 50% of gross income from agricultural pursuits encompassing crops, livestock, aquaculture, forestry operations, and nurseries that qualify throughout the Rogue Valley. Small business status is ascertained by the Small Business Administration (SBA), factoring in business type, employee count, or annual receipts.
Guidelines for consideration :
- Projects must be completed within a two years.
- Residential projects are not eligible.
- Costs incurred prior to the successful application completion are not eligible.
- Employee count calculation is based on the preceding 24 months.
2023 – 2024 Application Deadlines:
- June 30, 2023
- September 30, 2023
- December 31, 2024
- March 31, 2024
- June 30, 2024
- September 30, 2024
What to do Next?
Getting a free consultation is the first step to determining whether you qualify. We’ll be able to connect you with resources to help with the technical parts of the grant writing process. Would you be ready to learn more? Reach out today!