The Rural Energy for America Program (REAP) is a program administered by the United States Department of Agriculture (USDA). Its primary purpose is to assist agricultural producers and rural small businesses in developing renewable energy systems and making energy efficiency improvements. The program supports a wide range of renewable energy sources, including solar, wind, hydroelectric, geothermal, and biomass, as well as various energy efficiency upgrades.

The program aims to help rural businesses and agricultural producers reduce energy costs and consumption, improve their bottom line, and become more sustainable. REAP grants and loans are competitive and require applicants to meet specific eligibility criteria related to their location, type of project, and financial needs.

Eligible applicants include agricultural producers with at least 50% of gross income coming from agricultural operations, and small businesses in eligible rural areas. Tribal businesses, rural electric cooperatives, and public power entities may also be eligible to apply.

For energy efficiency improvement projects, grants range from $1,500 to $500,000. For renewable energy systems, grants range from $2,500 to $1,000,000.

Applications are accepted year-round, and funding cycles are quarterly. The are subject to change so check the official USDA website for updates on upcoming funding cycles.

The review process is typically 3-4 months, depending on the various factors including the amount of applications and cycle timing.

The typical timeline, from client introductions to the grant writer, to submission, to receiving a USDA “Receipt of Application Letter” is 8-10 weeks. From there, USDA runs a competitive process, announcing grant winners, followed by a site inspection, and then award, within 6-8 weeks.

Once grant is awarded, client can reimburse itself for costs incurred, without compromising project schedule.

Any expenses incurred before the eligible applicant letter is received are not eligible for grant reimbursement.

Applications are scored based on criteria such as energy generated or saved, environmental benefits, payback period, matching funds, and location in disadvantaged or distressed communities. The highest-scoring applications are awarded funding.

No, applicants should apply for REAP funding after their project design and costs have been determined but before any money has been spent on equipment or contracts.

While most renewable energy systems and energy efficiency improvements are eligible for funding, certain unproven technologies (i.e. no evidence of market commercialization) may not qualify for specific set-aside funds.

Non-profit organizations are not eligible for REAP grants; however, they may be eligible for REAP loan guarantees if they partner with eligible small businesses or agricultural producers.

Yes, applicants can reapply for the REAP program if their application was not funded in a previous funding round. It is likely they will need to submit a new application and ensure that their project still meets eligibility requirements and is updated as necessary.

Yes, multiple project locations can be bundled together in a single application if they are using the same technology. However, each project must meet the eligibility requirements, and the total grant request should not exceed the maximum allowed grant amount for the specific project type.

Yes, other federal or state grants can be used to cover the matching funds requirement, provided that the use of these funds does not conflict with the terms and conditions of the other grants.

Yes, you can apply for both a Renewable Energy System (RES) and an Energy Efficiency Improvement (EEI) project. However, you will need to submit separate applications for each project type. Each application will be evaluated independently, and the approval of one project does not guarantee the approval of the other.

Yes, you can apply for a REAP grant for a project that combines multiple renewable energy technologies, such as solar and wind power. The application should clearly describe how the technologies work together as an integrated system and demonstrate the overall energy and cost-saving benefits.