USDA Rural Energy for America Program (REAP)
USDA grants up to $1 million and loan guarantees up to $25 million for farmers and rural small businesses to install renewable energy systems and energy efficiency improvements.
About this program
REAP provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems (solar, wind, biomass, geothermal, hydroelectric) and energy efficiency improvements (HVAC, refrigeration, lighting, motors, irrigation). Maximum grant: $1 million for renewable energy systems, $500,000 for energy efficiency. Federal cost share is up to 25% of project costs from Farm Bill funds (50% under Inflation Reduction Act funding when available). Loan guarantees up to 80% of project costs. Note: REAP grant applications were paused by USDA in 2025 pending new regulations; loan guarantee applications continue to be accepted.
Eligibility
Agricultural producers with at least 50% of gross income from agricultural operations, OR rural small businesses meeting SBA size standards located in eligible rural areas (population under 50,000). Cooperatives and tribal businesses may also qualify.
Requirements
- Agricultural producer or rural small business
- Project must be in eligible rural area
- Energy assessment or audit