What is a USDA REAP grant?
The USDA REAP Grant (Rural Energy for America Program) was created to help rural businesses and agricultural producers invest in clean, renewable energy and install energy-efficient equipment. Established as part of the 2002 Farm Bill, REAP aims to promote long-term sustainability in rural areas by reducing energy costs and reliance on non-renewable sources. Over the years, the program has provided financial support for projects like solar energy installations, helping farms and small businesses stay competitive in a changing energy landscape.
PPM Solar has secured $6 million in REAP Grant funding across 21 projects, with a 100% approval rate. Download our guide to learn more about maximizing REAP funds and your project’s savings potential with the Federal Tax Credit and MACRS.
In 2022, the Inflation Reduction Act significantly impacted the program by increasing the funding available for renewable energy projects. This boost raised the maximum funding from 25% to 50% of total grant project costs, making the USDA REAP Grant 2024 even more attractive for businesses seeking to go solar. The REAP Grant now allows rural businesses to reduce energy expenses, lower their carbon footprint, and reinvest the savings into growing their operations, which is essential for the long-term viability of rural communities.
USDA REAP grants for solar energy projects
Through the REAP grant for solar, businesses can receive up to 50% of the total project cost, significantly lowering the financial burden of the initial investment.
The funding range for USDA REAP grant awards varies, with grants available from $2,500 to $1 million, depending on the size and scope of the project.
The REAP solar grant helps reduce operating expenses and contributes to long-term sustainability by making solar power more affordable. This allows businesses and farms to reinvest in their operations and support the economic health of rural communities.
The benefits of solar energy for rural businesses:
- The REAP grant helps lower operating expenses by offsetting the cost of solar installations, allowing businesses to generate their own electricity.
- Solar energy provides a reliable power source, reducing dependency on external energy suppliers and protecting businesses from fluctuating energy prices.
- By adopting solar energy, businesses reduce greenhouse gas emissions, conserve natural resources, and contribute to a healthier environment for their communities.
- With lower energy costs and improved efficiency, businesses can reinvest savings into expanding operations, fostering innovation, and supporting local economic growth.
REAP grant eligibility criteria
The REAP grant eligibility extends to rural small businesses, agricultural producers, and utilities looking to invest in renewable energy projects. To qualify for the REAP grant 2024, applicants must meet specific criteria, including business location, size, and project type.
A key tool for determining eligibility is the USDA REAP grant eligibility map, which helps businesses confirm if their location qualifies as rural. This map, provided by the USDA, is easy to use: simply enter your business address to see if you’re in a region eligible for funding. The REAP grant map includes eligible rural areas with populations of 50,000 or fewer, excluding urbanized regions.
Eligibility criteria for the program focus on several key factors:
- Agricultural producers are eligible regardless of location. To qualify, least 50% of gross income should derive from agricultural production and processing.
- Business location must be in a rural area, and can be determined by using the REAP grant eligibility map.
- Non-agricultural applicants must meet the Small Business Administration’s size standards, typically with a net worth under $15 million and an average net income below $5 million over the last two years.
- Projects must involve renewable energy systems like solar, wind, or energy efficiency upgrades.
- Businesses should have a well-defined project plan ready for implementation to maximize their chances of receiving funding. PPM Solar will help you with this part of the process.
USDA REAP grant awards and scoring process
The USDA REAP grants are awarded through a competitive scoring system designed to prioritize the most impactful renewable energy projects. The REAP grant scoring process evaluates each application based on several criteria, with a maximum of 100 points available. This system ensures that projects with the greatest potential for energy savings and community benefit receive funding.
Here’s how the scoring works for USDA REAP grant awards 2024:
| Scoring criteria | Points | Description |
|---|---|---|
| Energy generated, saved, or replaced | up to 25 points | Points are awarded based on the amount of energy the project is expected to generate or save, with higher points for more significant energy savings or generation. |
| Previous REAP funds | up to 15 points | New applicants who have not received REAP funds before are awarded 15 points. |
| Length of payback period | up to 15 points | Projects with shorter payback periods receive higher points, as this indicates a faster return on investment. |
| Location in a Disadvantaged or Distressed Community | up to 20 points | Projects located in areas facing economic challenges receive additional points to encourage investment and development in these communities. Disadvantaged or Distressed Community Map |
| Commitment of matching funds | up to 10 points | Points are awarded based on the percentage of matching funds committed and verified by the application package. |
| Environmental benefits | up to 10 points | Projects demonstrating significant environmental benefits, such as reducing greenhouse gas emissions, receive additional points. |
| State Director/Administrator Points | up to 10 points | These points are determined differently for each state and are usually developed during the first competition each year. |
How to apply for the USDA REAP grant
To apply for the REAP grants and fund your renewable energy project, follow this straightforward process:
1. Obtain a unique entity ID
Visit sam.gov, create an account, and follow the instructions to register your business and obtain your Unique Entity ID. This ID is required for all federal grant applications, including the USDA REAP grant.
2. Complete form RD-4280-3A
Carefully complete each section of Form RD-4280-3A according to the instructions provided. This form is essential for your REAP grant application. Include all necessary paperwork, such as financial information and project quotes, to avoid delays.
3. Submit your application
Submit your application well before the USDA REAP grant 2024 deadline of December 31, 2024. Applications must be received by 4:30 PM local time on the closing date. After submitting, confirm receipt of your application with your USDA Rural Development State Energy Coordinator to ensure everything is in order.
Tips for filling out the REAP application
Before you begin your REAP grant USDA application, make sure you have the following documents ready:
- A copy of your business license or property deed.
- Electric bills from the last 12 months.
- Detailed quotes from your solar installer, including cost breakdowns.
- Bank statements or letters of commitment proving available funds for your project.
- Proof of registration in SAM, including your Unique Entity ID.
PPM Solar’s grant writing support
If you choose to apply through PPM Solar, we will guide you through the entire process—from project cost evaluation and design to grant writing and submission. Our dedicated REAP grant writers ensure your application is complete and accurate, improving your chances of securing funding. Once your application is approved, PPM Solar will handle the project execution from start to finish.
Application deadline 2024
The final REAP grant USDA application deadline is December 31, 2024. Make sure to submit your application before this date to take advantage of the available funding for renewable energy projects.
Ready to maximize your solar investment?
At PPM Solar, we’ve successfully applied for an impressive $6 million in REAP Grants across 21 projects during previous application windows. We’re proud to say we’ve secured 100% funding approval for every USDA REAP Grant application we’ve submitted.
In addition to the REAP grant awards, you can further reduce your initial installation costs with the Federal Tax Credit and MACRS depreciation benefits, making your solar investment even more affordable.
Want to explore all available financial incentives, see your project’s cost breakdown, and understand its environmental impact?
Download our complete guide to learn how we can help you go solar while maximizing your savings.
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