2024 Rural Energy for America Program (REAP) at a Glance
Empowering Agricultural and Small Business Sectors
REAP, a vital initiative by the U.S. Department of Agriculture, focuses on aiding agricultural producers and rural small businesses in adopting renewable energy and enhancing energy efficiency.
Eligibility for REAP Grants
Eligible Applicants | Description |
Agricultural Producers | Must have 50%+ gross income from agricultural operations |
Small Businesses | Located in eligible rural areas |
Types of Eligible Entities for REAP
Entity Type | Specifics |
Private For-profit Entities | Includes Sole Proprietorship, Partnership, Corporation |
Cooperatives | Qualified under Section 501(c)(12) of IRS Code |
Tribal/Governmental Electric Utilities | Operates independent of direct government control |
Tribal Corporations | Under Section 17 of the Indian Reorganization Act or similar |
Utilization of REAP Funds
Purpose | Details |
Renewable Energy Systems | Biomass, geothermal, hydropower, hydrogen, wind, solar, ocean generation |
Energy Efficiency Improvements | HVAC, insulation, lighting, cooling units, energy-inefficient equipment replacement |
Specific Uses for Agricultural Producers
Use | Description |
Energy Efficient Equipment | For agricultural production or processing |
Financial Framework of REAP
Funding Availability and Limits
Funding Type | Percentage | Maximum Amount |
Loan Guarantees | Up to 75% of eligible costs | - |
Grants | Up to 50% of eligible costs | - |
Combined Funding | Up to 75% of eligible costs | - |
Loan Guarantee and Grant Amount Details
Fiscal Year | Loan Guarantee Percentage | Renewable Energy System Grants | Energy Efficiency Grants |
2024 | 80% | $2,500 to $1 million | $1,500 to $500,000 |
Additional Requirements and Application Process
Matching Funds and Technical Requirements
Grant applicants must provide matching funds.
All projects must demonstrate technical merit and use commercially available technology.
Energy efficiency projects require an energy audit or assessment.
Environmental Compliance
Mandatory environmental review before awarding or starting any project.
How to Apply for REAP
Applications accepted year-round at local USDA offices.
Application windows open for Fiscal Years 2023 & 2024.
Contact for Assistance
Queries can be addressed to State Rural Development Energy Coordinators.
Legal and Regulatory Framework
Governing Laws for REAP
Aspect | Governing Regulation |
Grants | 7 CFR Part 4280 |
Guaranteed Loans | 7 CFR 5001 |
Authorization | Title IX of the Farm Security and Rural Investment Act |
USDA’s Vision Through REAP
The USDA aims to bolster American energy independence and reduce energy costs over time through REAP, by supporting renewable energy and energy efficiency advancements in the rural small business and agricultural sectors.
Q&A Section - 2024 REAP Grants
Who qualifies for REAP funding?
Agricultural producers and small businesses in rural areas, adhering to specific income and location criteria. 2024 REAP Grants
What project types does REAP support?
Installation of renewable energy systems and energy efficiency improvements.
What are the financial caps for REAP grants and loans?
Loan guarantees up to 75%, grants up to 50%, and a combined limit of 75% of total eligible project costs. Grant amounts range up to $1 million for renewable systems and $500,000 for energy efficiency improvements.
Meta Description: Uncover the details of the Rural Energy for America Program (REAP), designed to support renewable energy and energy efficiency projects in rural small businesses and agricultural producers, including eligibility, funding, and application process.
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