USDA Opens $1B for Rural Renewable Energy Grants
Eligible applicants: nonprofits. Applications are due: June 30, 2023; September 30, 2023; December 31, 2023; March 31, 2024; June 30, 2024; September 30, 2024
Announcement Type: Notice of Funding Opportunity (this program is currently accepting applications)
Opportunity: Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants
Overview and Eligible Uses: The USDA began accepting applications starting on April 1 for $1 billion in guaranteed loans and grant financing to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the $1 billion in grants available under the Rural Energy for America Program (REAP), with funding from the Inflation Reduction Act. Projects must be located in rural areas with populations of 50,000 or less.
Renewable energy system projects can include the purchase and installation of:
Biomass
Geothermal for electric generation or direct use
Hydropower below 30 megawatts
Hydrogen
Small and large wind generation
Small and large solar generation
Ocean (tidal, current, thermal) generation
Energy efficiency improvements can include the purchase, installation, or construction of:
High efficiency heating, ventilation and air conditioning systems (HVAC)
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
Amount: $1B total will be made available through FY 2024. Loan guarantees are available to cover up to 75% of eligible project costs. Grants are available to cover up to 50% of eligible project costs, with a total individual grant cap of $1M for renewable energy system projects, and a grant cap of $500,000 for energy efficiency improvements.
Award Type: Grants and loan guarantees
Eligible Applicants:
Agricultural producers, for whom at least 50% of their gross income comes from agricultural production
Small businesses, located in eligible rural areas, and must be either for-profit, a cooperative, an electric utility, or a Tribal corporation
Key Dates: Applications for FY 2023 and FY 2024 will be accepted on a rolling basis within the following quarterly competition windows:
June 30, 2023
September 30, 2023
December 31, 2023
March 31, 2024
June 30, 2024
September 30, 2024
Key Links:
Rural Energy for America Program (REAP) (USDA)
For a full list of currently available grant programs under the Infrastructure Law and other helpful tools, take a look at our Helpful Resources page.
This tracker will continue to send updates when new funding opportunities are announced.