What is the REAP Program
The Rural Energy for America Program (REAP), initiated by the United States Department of Agriculture (USDA) in 2008, provides funding to support the installation of renewable energy systems, such as solar panels, for eligible rural small businesses and agricultural producers. The program aims to increase energy independence in the U.S., lower energy costs for rural businesses, create skilled jobs and boost clean energy supply.
Expanded Scope and Budget (2023)
In 2023, the REAP program’s budget and scope were significantly expanded, allowing agricultural operations and rural small businesses to receive grants covering up to 50% of total project costs for solar energy installations.
Eligibility
- Small Businesses: As defined by the Small Business Administration (SBA), located in communities with fewer than 50,000 people.
- Agricultural Producers: Both rural and urban producers derive at least 50% of their gross income from agricultural operations.
Why Should Solar System Owners Care About REAP?
- Financial Incentives: REAP offers grants and guaranteed loans to cover up to 75% of the total project cost. This financial support can make solar installations more affordable for rural businesses and agricultural producers, increasing the demand for your services.
- Market Expansion: Rural areas often have vast spaces ideal for solar farms and installations, providing ample growth opportunities.
- Sustainability Goals: Helping rural communities transition to solar energy aligns with global sustainability goals. It not only reduces carbon footprints but also promotes energy independence and resilience.
