The Rural Energy for America Program (REAP) program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers can also apply for new energy-efficient equipment and new systems loans for agricultural production and processing.
The REAP 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.
Funds for Energy Efficiency Improvements
- High-efficiency heating, ventilation & air conditioning systems (HVAC)
- Insulation
- Lighting
- Cooling or refrigeration
- Doors & windows
- Electric, solar, or gravity pumps for sprinkler pivots
- Switching from diesel to an electric irrigation motor
- Replacement of energy-inefficient equipment
Eligible Applicants
- Agricultural producers with at least 50% of their gross income coming from agricultural operations.
- Small Businesses in eligible rural areas.
Types of Funds Available
- Loan Guarantees on loans up to 75% of total eligible project costs
- Grants for up to 50% of total eligible project costs
- Combined grant and loan guarantee funding up to 75% of total eligible project costs