Rural Engergy
for America Program
Renewable Energy Systems and Energy Efficiency Loans and Grants
What is the REAP Program?
REAP is a USDA grant or loan program designed to encourage rural businesses to make energy efficient improvements to their facility or to incorporate renewable energy technologies.
If a company is located, or decides to locate, in an area that has a population density of 50,000 or less, they are eligible to apply for these funds.
How Does the Program Work?
- REAP is a cost share loan or grant program for Energy Efficiency or Renewable projects.
- Renewable Projects Include:
Biomass, Geothermal for heating and cooling, electric generation, or direct use, Hydropower, Hydrogen, Wind generation, Solar generation, and Ocean generation.
- Efficiency Upgrades Include:
High efficiency heating, ventilation, and air conditioning (HVAC) **GEOTHERMAL**
Building Envelope
- Insulation, Doors, Windows, Lighting, Replacement of inefficient equipment
- The program is structured as a cost share. The USDA provides 50% of the project cost and the applicant (building owner) provides the remaining 50%.
How Large of a Fund is Available?
- 2 billion in funding is available for the program.
How to Apply:
- Determine if the project will be submitted as an energy efficient upgrade or as a renewable energy project (Geothermal Heat Pumps qualify for both categories).
- You will need information on the system’s performance, ROI, and efficiency.
- Submit the application before the deadline date. There are multiple deadlines throughout the year.
Things to Consider:
- You may wish to hire the services of a company or person that is familiar with filling out these types of grant or loan program forms.
- Your local cooperatives may assist you with these programs or at a minimum be familiar with a person or company that deals with REAP grants and loans.
- If you don’t succeed in getting the grant or loan the first round, consider resubmitting it on the next date.
- If you choose to submit a geothermal system as a renewable, the questions asked are more appropriate for power generating technology, so you may have to get creative to answer.
- Call your local USDA office for questions about the form and the information needed.
