Applications will begin being accepted on April 1 for grants to investments in renewable energy and other energy-efficiency improvements. The U.S. Department of Agriculture (USDA) aims to help agricultural producers and rural small businesses with clean energy access. Grants are being made available through the Rural Energy for America Program (REAP) with funding from the Inflation Reduction Act.
“Supporting renewable energy and energy-saving systems helps the people of rural America create thriving, livable communities,” Agriculture Secretary Tom Vilsack said in a press release. “When we invest in rural communities, we are supporting hard work that sends a ripple effect across our country. Clean energy is critical to the future of our economy, and the Inflation Reduction Act provides the Biden-Harris Administration with the resources to build a more prosperous rural America while tackling the climate crisis and lowering energy costs.”
The application window opening on April 1 will be the first of six quarterly competitions for grant funding. Changes to REAP include a doubling of potential grant awards. The grant size for energy efficiency projects has been increased from $250,000 to $500,000. Renewable energy system grants have also increased from $500,000 to $1 million. Additional changes to the program include the establishment of the Underutilized Technology Fund. An initial $144.5 million in funding will be dedicated to the fund.
The maximum federal share that can be requested has also been increased to 50 percent of the total project for all energy efficiency and zero-emission renewable energy projects. All projects located in designated energy communities, along with projects submitted by eligible tribal entities are also eligible for a 50 percent cost share. All other projects can apply for grants of up to 25 percent of the project cost. USDA will also be setting aside at least 20 percent of available funding until June 30 of each grant year for applications for $20,000 or less.
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