What does this funding get me?
This USDA program provides loan guarantees, grants, and combined grant and loan guarantee funding for renewable energy systems and energy efficiency improvements installed by agricultural producers and rural small businesses.
Funds may be used for the purchase and installation of renewable energy systems, such as:
- Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels)
- Geothermal for electric generation or direct use
- Hydropower below 30 megawatts
- Hydrogen
- Small and large wind generation
- Small and large solar generation
- Ocean (tidal, current, thermal) generation
Funds may also be used for the purchase, installation, and construction of energy efficiency improvements, such as:
- High-efficiency heating, ventilation, and air conditioning systems (HVAC)
- Insulation
- Lighting
- Cooling or refrigeration units
- Doors and windows
- Electric, solar, or gravity pumps for sprinkler pivots
- Switching from a diesel to an electric irrigation motor
- Replacement of energy-inefficient equipment
Energy efficiency improvement applications must include an energy audit or energy assessment (depending on total project cost).
Agricultural producers may also use guaranteed loan funds to install energy-efficient equipment and systems for agricultural production or processing.
Combined grant and loan-guarantee funding may be as much as 75% of project costs. Details on the amount and type of funding are in the 7-page funding announcement here.
Am I eligible?
Agricultural producers: An entity directly engaged in the production of agricultural products with at least 50 percent of gross income coming from agricultural operations.
Small businesses: Must meet the Small Business Administration size standards in accordance with 13 CFR 121, be located in an eligible rural area, and be one of the following:
- Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
- Cooperative, including those qualified under Section 501(c)(12) of IRS Code
- Electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independently of direct government control
- Tribal corporations or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.
How can I access the money?
For information on the necessary forms required to apply for funds for your projects, visit the USDA’s REAP web pages for North Carolina and South Carolina. USDA recommends reaching out to your Rural Energy Coordinators before attempting to fill out any forms or applications.
What is the timeline?
Application deadlines for each year through Fiscal Year 2027 are:
- Fiscal Year 2025: open now through Mar. 31, 2025 for funding through Farm Bill only (up to 25% grants; see announcement of Dec. 19, 2024)
- Fiscal Year 2026: expected to open July 31, 2025 with deadlines Sept. 30 and Dec. 31, 2025; Mar. 31, 2026 (IRA grants up to 50% and Farm Bill grants up to 25%)
- Fiscal year 2027: expected to open July 31, 2026 with deadlines Sept. 30 and Dec. 31, 2026; Mar. 31, 2027
What other incentives could I use to help me accomplish my goals?
If you are installing solar or certain other clean energy technologies, REAP funding can be used in conjunction with the 30% clean electricity investment tax credit for businesses or tax-exempt entities, and businesses may also get a tax deduction on the depreciation of the equipment.
Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for additional incentives that may be offered by your state, local government, or utility, as well as important federal, state, and local policies. For questions regarding DSIRE, contact Justin Lindemann (NC Clean Energy Technology Center) at jplindem@ncsu.edu.
What are examples of projects that have been selected for awards?
- Walter P. Rawl & Sons Inc. to Install Solar Array – Pelion, SC ($944,212)
- Luz Solar to purchase and install a 1.782 MWDC commercial utility scale solar array – Darlington County, SC ($1,000,000)
- Ashley Solar to purchase and install a 3.564 MWDC commercial utility scale solar array – Darlington County, SC ($1,000,000)
- C & M Hog Farm to purchase and install a new GSI 1226 grain dryer – Dillon County, SC ($94,846)
Where can I get more information?
- USDA web page on the REAP program
- USDA pages specifically for North Carolina and South Carolina
- It’s recommended you contact your State Rural Development Energy Coordinator before beginning your application with any questions you may have.
- You can also contact Bill Tew at bill.tew@usda.gov or 919-895-3647
- USDA energy investment map
- Fact sheet
- Watch a USDA webinar about REAP
- Solar United Neighbors publication Your Rural Business Can Go Solar: A Guide to Applying for a Rural Energy for America Program Grant and REAP webinar
- The NC Clean Energy Technology Center provides renewable energy assessment and related technical assistance to eligible facilities under REAP. Click here for more information.
- In addition to the resources listed above, a variety of organizations offer technical assistance that may help you access these funds. They are listed on our Get Help page.
- For specific questions on this program or for more assistance, contact Sally Robertson at info@energyfundsforall.org.