ABOUT THE RURAL ENERGY FOR AMERICA PROGRAM (REAP)
This program provides grant and guaranteed loans 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. All projects must have technical merit and utilize commercially available technology. Any energy efficiency projects require an energy audit or assessment and all projects require an environmental review prior to award or construction.
This program offers both grants and loan guarantees. Loan guarantees on loans up to 75% of total eligible project cost and grants up to 50% of total eligible project costs. Combined grant and loan guarantee funding up to 75% of the total eligible project costs. The term of loans will not exceed 40 years and will be based on lender assessment of all factors. Interest rates are negotiated between the lender and borrower.
The initial guarantee fee is 1% of the guaranteed amount and the annual fee is .25% of the outstanding principal balance.
Grants for renewable energy systems are $2500 minimum and $1M maximum. Grants for energy efficiency are $1500 minimum and $500000 maximum. If applying for a grant only, applicants must provide matching funds. 50% Federal grant share limited to specific projects, included those proposed from an eligible Tribal Corporation or other Tribal Business entity. For all other projects the limit is 25% Federal grant share.
Eligible Uses of REAP
- Purchase and Installation of renewable energy systems:
- Biomass
- Geothermal
- Hydropower (below 30 MW)
- Hydrogen
- Wind generation
- Solar generation
- Ocean generation
- Purchase, installation, and construction of energy efficiency improvements:
- High efficiency HVAC systems
- Insulation
- Lighting
- 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
Who Can Apply?
Ultimate recipients must:
- Agricultural producers
- Small Businesses
- Must not have any outstanding delinquent federal taxes, debt, judgement, or debarment
- US citizen (if entity, must demonstrate funds will remain in US)
- Projects in rural areas: Eligibility
