Val Ankeny.

Rural small business owners and agricultural producers can decrease energy costs through energy efficiency measures and the installation of renewable energy systems such as solar, with the help of the Rural Energy for America Program (REAP).

Grants are now available for up to 50% of eligible project costs, and guaranteed loans are available for 75% of the project cost.

REAP can provide guaranteed loan financing and grant funding for solar arrays, geothermal systems, and wind turbines, or for making energy-efficient upgrades to irrigation motors and grain dryers, windows, doors, refrigeration units, and lighting.

Applying for a REAP grant or loan involves some preparation and planning. Applicants should ensure they have a clear understanding of the requirements. For example, energy audits may be required for energy efficiency grants, and they can take several months to complete. Also, applications are evaluated through a scoring system. For energy efficiency improvement projects, the most points will be awarded for projects that estimate the energy saved at 50 percent or greater. No points are awarded for projects that show less than 20 percent energy saved.

Application assistance is available. Every state has a USDA Rural Development State Energy Coordinator (https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf). Reach out to this office well in advance of the submission deadline to discuss your project. Some states offer additional assistance; for example, the Clean Energy Districts of Iowa offers REAP coaching to 13 counties across the state: https://www.cleanenergydistricts.org/reap.

Upcoming deadlines are Dec. 31, 2024, and March 31, 2025. Funding for this program continues through 2027. REAP was created in 2003, and in 2024, received $600 million and support through the Inflation Reduction Act (IRA). It is administered by the U.S. Department of Agriculture.

Val Ankeny is a policy associate with the Center for Rural Affairs. Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.