With rising energy costs, more and more farmers and ranchers are seeking to produce their own renewable energy and reduce energy costs on their farms and ranches. There has never been a better time to have an independent energy power system, financed cash-flow positive from day one providing benefits for  decades to come.

A little known but very powerful program is the USDA’s Rural Energy for America Program (REAP). REAP provides assistance to agricultural producers and rural small businesses to complete a wide variety of renewable energy and energy efficiency projects, including solar PV and solar thermal projects.

The REAP program was implemented to help farmers, ranchers, rural small businesses offset energy costs and consumption to help them curtail their dependency needs on foreign oil. The program was also implemented to help stimulate economic development by helping create new renewable energy sources and income, create new jobs, and make our country more self sufficient.

What Funding is Available?

  • Grants for up to 25% of total eligible project costs up to a maximum request of 25% of project costs or $500,000
  • Loan guarantees on loans up to 75% of total eligible project costs
  • Combined grant and loan guarantee funding up to 75% of total eligible project costs

These Grants and Loans are in addition to state rebates, investment tax credits utility rebates, or renewable energy credits:

Here’s The Math

30% tax credit + 20% Depreciation (assumes 25% tax bracket,  5 year depreciation schedule) + %25 USDA Grant = 75% off installation cost!

Who is Eligible?

Farmers, ranchers, and rural businesses (in communities of less than 50,000 population). Eligible projects may include:

What Kind of Projects are Eligible?

Funds may be used for the purchase, installation and construction of renewable energy systems and energy efficiency improvements, including but not limited to:

Renewable Energy Systems providing energy loans for wind, solar electric, solar thermal, biomass, biogas, geothermal source, hydrogen derived from biomass or water using wind, solar, or geothermal energy sources.
Energy Efficiency Improvements to the farm or business (HVAC systems, insulation, refrigeration, lighting, irrigation systems, pumping systems, air systems, motor systems, etc.)

USDA Eligible REAP Applicants
Applicants must be either an agricultural producer or a small business with gross income limits assigned to different types of business. The project must be located in USDA mapped rural areas. Please call our office to determine if you are in a designated area or refer to the link below.
Agricultural Producers
An individual or entity directly involved in the production of agricultural products and 50% or greater of their gross income is derived from the agricultural production. You must have three years of tax returns or proof of established new entity.

Rural Small Business
An individual,Sole Proprietorship, Partnership (General or Limited), LLC, Corporation, and Cooperative. Municipal or Tribal electric utilities may also qualify. Must meet SBA small business size standards, including aggregate of affiliated and subsidiary entities; excludes other non-profit entities.

Synergy Solar Systems is well-versed in the world of renewable energy system Agriculture USDA grants and Agriculture USDA loan guarantee program processes. Contact us today to get started. The process can take a while, so it is best to get going as soon as possible.

Please call 887.322.9988 or email at info@synergysolarsystems.com if you would like USDA information or a more detailed analysis of costs for your particular application.