Meet REAP: Rural Energy For America Program

Meet REAP: Rural Energy For America Program

FUNDING SOLAR AND EFFICIENCY PROJECTS

The Rural Energy for America Program (REAP) is a remarkable initiative by the U.S. Department of Agriculture (USDA) designed to support rural businesses and agricultural producers in becoming more energy-efficient and sustainable.?

REAP provides financial assistance, grants, and loan guarantees to help companies implement renewable energy systems and efficiency improvements.

REACH OUT FOR MORE INFO: 877.244.0182


Why You Should Care About REAP

The Federal Government is giving away grants for businesses operating in rural communities across the US that can fund solar energy projects, LED lighting improvements and other efficiency projects.

If your business in located in a rural area, you could benefit from REAP!

What Does the REAP Program Do?

The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to improve energy efficiency.?

Agricultural producers can also apply for new energy-efficient equipment and new system loans for agricultural production and processing.

What types of funding are available?

  • Loan guarantees on loans up to 75 percent of total eligible project costs
  • Grants for up to 50 percent of total eligible project costs
  • Combined grant and loan guarantee funding up to 75 percent of total eligible project costs

What is the maximum amount of a loan guarantee?

The loan guarantee percentage is published yearly in a notice in the Federal Register (https://www.federalregister.gov/)

How do you get started?

Your TPI Energy Consultant would be able to help you. First, we must verify that your address is within the REAP-approved rural area for this program. Also, could you give us your NCIS code?

Reach out to your TPI Consultant to get started! Local: 216.453.2500 ? Toll-Free: 877.244.0182

Why has the USDA launched this program?

This program helps increase American energy independence by increasing the private-sector supply of renewable energy, and by decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy costs for small businesses and agricultural producers.


Rural Energy for America Program

The?Rural Energy for America Program, or the?USDA REAP Grant, provides grant funding and guaranteed loan financing to rural small businesses and agricultural producers across the United States to be used for implementing renewable energy systems or improving overall energy efficiency.

This program aims to increase energy independence in the United States by generating a higher supply of clean energy in the private sector while simultaneously decreasing energy needs. They hope that these efforts may reduce energy costs overall for agricultural producers and rural small businesses over time.

REACH OUT FOR MORE INFO: 877.244.0182


REAP in the Inflation Reduction Act:  The program is undergoing numerous changes with the infusion of funds from the IRA. Understanding these will be key to the completion of a successful application.        

Timing

REAP will host six quarterly competitions to obligate $1.05 billion throughout FY 2023 and FY 2024.

Grants by The Numbers

The maximum grant size was increased from $250,000 to $500,000 for energy efficiency projects and from $500,000 to $1 million for renewable energy systems.

Federal Share

The federal share was raised to 50% for all energy efficiency projects, all zero-emission renewable energy projects, and all projects in designated energy communities and projects submitted by eligible tribal entities.

Underutilized Technology Fund

Under The creation of an Underutilized Technology Fund with an initial infusion of $144.5 million for renewable energy technologies, which comprised less than 20% of the project pool two years before the application year, no single technology may receive more than 50% of the total funding available in each fiscal year, except for years in which all underutilized technology applications have been processed. Applications remain unfunded, with funding still available in the set-aside.


Is Your Business Eligible?

The USDA REAP Grant applicants must:

  1. Be financially solvent
  2. Not be delinquent or have outstanding federal taxes
  3. Be the owner of the business
  4. Have no judgment or debarment to be considered.

Location Requirements

Agricultural producers may be in either rural or non-rural locations. At the same time, small businesses must be located in rural development areas, defined as an area, not a city or town with 50,000 or more inhabitants, and the urbanized areas surrounding the city or town.

You can use the?USDA Eligibility Map?to check your business address online to determine eligibility. If your business in located in a rural area, you could benefit from REAP!


Rural Energy for America Program Program Highlights

Program Objective

  • REAP offers guaranteed loan financing and grant funding to agricultural producers, rural small for-profit businesses, co-ops, and tribal businesses.
  • The program aims to support purchasing or installing renewable energy systems (RES) and energy efficiency improvements (EEI) projects.

Grant Funding Highlights

  • REAP grants cover up to 25% or 50% of eligible project costs.
  • Grant awards range from $1,500 to $500,000 for EEI projects and $2,500 to $1,000,000 for RES projects.

Loan Guarantees

  • REAP-guaranteed loans are provided through lending institutions.
  • These loans can finance up to 75% of a project’s total eligible costs with an 80% guarantee.

Eligibility & Program Information

  • Agricultural Producers and Rural Small Businesses
  • Renewable energy systems (RES) and energy efficiency improvements (EEI) projects

Important Considerations

  • Do not incur project expenses until you have received a complete application letter or grant award.
  • Applications are accepted year-round; however, only complete applications with environmental reviews compete in funding cycles.

Upcoming Funding Cycles for Grants

  • September 30, 2023
  • December 31, 2023
  • March 31, 2024
  • June 30, 2024
  • September 30, 2024




How TPI can Assist with REAP Funds:

  • Small and large solar generation

Funds also can be used to buy, build, and install energy efficiency improvements such as:

  • High-efficiency heating, ventilation, and air conditioning systems (HVAC)
  • Lighting
  • Cooling or refrigeration units
  • Replacement of energy-inefficient equipment

REACH OUT FOR MORE INFO: Local: 216.453.2500 ? Toll-Free: 877.244.0182


REAP Provides Financial Assistance, Grants, And Loan Guarantees To Help Companies Implement Renewable Energy Systems And Efficiency Improvements.        

Who Can Apply?

  • Agricultural producers with at least 50 percent of their gross income coming from agricultural operations?
  • Small businesses in eligible rural areas?
  • NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment, or debarment.?

?What types of borrowers are eligible??

Eligible borrowers include:?

  • ?Rural small businesses?
  • Agricultural producers?
  • Additional USDA Rural Development programs that support other types of businesses and organizations are included in the OneRD Guarantee Loan Initiative.?


REAP PROGRAM HIGHLIGHTS

PART OF THE INFLATION REDUCTION ACT

Financial Support

REAP offers financial incentives that can significantly offset the costs of adopting renewable energy systems and implementing energy efficiency upgrades. These incentives can be grants, guaranteed loans, or a combination of both.

Eligible Projects

The program covers many projects, including installing solar panels, wind turbines, energy-efficient lighting, heating and cooling systems, biomass projects, and more. These improvements reduce energy consumption and lead to substantial cost savings over time.

Business Benefits

By participating in REAP, businesses can experience many benefits. They can lower operational expenses, enhance competitiveness, and improve environmental sustainability. Moreover, adopting energy-efficient technologies often leads to increased marketability and consumer appeal.


Application Process

The application process for REAP is designed to be accessible and straightforward. Businesses can work with experts like us to navigate the paperwork and meet all requirements.

Positive Environmental Impact

Participating in REAP reduces greenhouse gas emissions and reliance on non-renewable energy sources. This demonstrates a commitment to environmental stewardship and supports the global transition to cleaner energy alternatives.

Rural Focus

REAP primarily targets rural businesses, agricultural producers, and agricultural-based businesses. This ensures that rural communities can access the benefits of energy efficiency and renewable energy technologies, leading to overall economic development.


TPI EFFICIENCY: Our Role In REAP

As your partner in energy efficiency and sustainability, we are well-versed in the intricacies of the REAP program. We offer comprehensive support throughout the process, from assessing your eligibility and identifying suitable projects to preparing and submitting applications.

We aim to maximize your benefits from the REAP program and help you achieve your energy and financial objectives.

By collaborating with TPI Efficiency and leveraging the opportunities provided by REAP, you’re taking a proactive step toward a more energy-efficient future for your business while contributing to the well-being of your community and the planet.

REACH OUT FOR MORE INFO: Local: 216.453.2500 ? Toll-Free: 877.244.0182

The Rural Energy for America Program presents a fantastic chance for your business to embrace renewable energy and energy-efficient practices. By participating in REAP, you can access financial incentives that make sustainable improvements an attainable and cost-effective reality. As your dedicated partner, we are here to guide you through every step of the process, ensuring you unlock the full potential of REAP and enjoy a brighter, more sustainable future.        

TPI Takeaway

It’s important to note that the availability of funding and the specific amounts may vary yearly based on the program’s budget and priorities.

Additionally, eligibility criteria and application requirements may apply, so it’s recommended to thoroughly review the program guidelines and consult with experts who are familiar with the REAP program.

Businesses and agricultural producers interested in accessing funding through the REAP program should work with knowledgeable partners who can guide them through the application process and ensure compliance with program requirements.


Information Required to Apply for a REAP Grant

Three years back, current and 2 years forward pro forma

Bills:

12 months of utility bills to document price bid for business energy

Financial Information:


Funding Information - How will the Remaining Costs Be Funded?

This factors into the scoring; you must be able to provide how it will be paid for.

REACH OUT FOR MORE INFO Toll-Free at 877.244.0182





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