Renewable Energy Grants, Loans

Agriculture Secretary Tom Vilsack announced that USDA is seeking applications from rural small businesses and agricultural producers for funding to make energy efficiency improvements or to install renewable energy systems.

The funding is being provided through USDA’s Rural Energy for America Program (REAP).

REAP funding has helped farmers expand renewable energy use in recent years. The new Census of Agriculture shows the number of farms using renewable energy production has doubled in the last five years. More than 57,000 farms reported using a renewable energy system in 2012, while 23,451 operations reported doing so in 2007. Solar panels accounted for 63 percent of renewable energy systems on farms, with 36,331 farms reporting their use.

For fiscal year (FY) 2014, USDA plans to award up to $12.3 million in grants and $57.8 million in loan guarantees. Additional REAP funds provided by the Farm Bill will be made available with a subsequent notice.

USDA is accepting applications for renewable energy system and energy efficiency improvement loan guarantees and grants. Requests for grants may not exceed 25 percent of a project’s cost – either for stand-alone grant requests or for grants combined with loan guarantees. Information on how to apply for REAP funding and application deadlines is available at gpo.gov/fdsys/pkg/FR-2014-05-05/pdf/2014-10054.pdf.