Reaping the Benefits of Solar
What is REAP?
The Rural Energy for America Program, also known as the REAP Grant, is a federal grant from the USDA that can cover up to 25% of the cost of a new solar PV system. Only agricultural producers and rural small businesses are eligible to receive funding via REAP. The objective of this program is to promote energy independence throughout the United States by making clean energy more attainable to the private sector.
While solar already decreases the amount spent on energy utilities, with the combination of this grant and the recently extended tax credit, there has never been a better time to invest in solar.
Wondering how much you can save with the USDA reap grant?
While you can save a whopping 25% on installation costs with this federal grant, we believe the more important question to ask is, “how much can I save by going solar?”. Before even considering the endless savings you will see once your system is up and running, you can reduce installation costs by over 50%!
This comes from the combination of the REAP Grant’s funding for solar, and the solar investment tax credit (ITC). While only agricultural or commercial solar projects are eligible for the REAP Grant, the ITC applies to all solar installations – including residential projects.
It should be made clear that this isn’t some sort of scam or gimmick, and that there is a lot of behind-the-scenes work that goes on in order for you to reap the benefits of this program. Luckily for you, our grant-writer will take care of all the nitty-gritty details.
That being said, we understand how this can sound almost too good to be true… but we promise: it’s just that good. Not only could the REAP grant save you up to 25%, but you will also benefit from the ITC (which covers an additional 26%), MACRS accelerated depreciation AND the fact that there’s no sales tax on solar installations in Florida.
With all of those incentives combined, the payback period for commercial projects can be as short as four years! Given that the ITC won’t be around forever, there has really never been a better time to invest in alternative energy like solar.
Are your rural?
Check the USDA-REAP Rural Eligibility Map to make sure your business address is located in an eligible rural area.
At PPM, we offer only top tier solar modules, inverters, and mounting structures that have been time-tested while making the latest and greatest technology available. Find out more about specific components that we install by clicking the button below to see our Technical Library.Products
Go solar today. Contact us to get a free estimate
Frequently Asked Question
How Can I Apply for a REAP Grant?
The United States Department of Agriculture accepts REAP grant applications. Instructions and dates of Fiscal Year programs are available online at Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants.
REAP Grant application acceptance can be competitive due to the limited amounts of money allocated by the USDA each year. One should work closely with a solar contractor and a USDA program specialist before attempting to fill out any forms or applications. Doing so will save you time in completing your application.
How Does the REAP Grant Work?
The REAP Rural Energy for America Program and Loan Guarantee program provides financial assistance to agriculture producers and rural small businesses to purchase, install, and construct renewable energy systems or energy efficiency improvements. Both solar PV energy systems and backup battery systems qualify.
Is The REAP Grant Paid in Cash?
REAP Grants are essentially a federal government-guaranteed loan. Once a REAP application is accepted, the funds are provided in the same manner as a loan, in cash.
Are REAP Grants Taxable?
The Internal Revenue Service considers REAP Grants as taxable income.