Rural Energy for America Program

You need to meet specific criteria to be eligible for REAP. Generally, agricultural producers and rural small businesses in the United States are eligible. Here are some factors to consider as you determine your eligibility.

• Location: If you’re a small business applicant, your project must be in a rural area. Urban areas with populations exceeding 50,000 typically don’t qualify. We recommend checking the USDA’s Rural Eligibility Map to make sure that your address is considered rural.
• Small Business Size: Small business applicants must also meet the Small Business Administration’s (SBA) size standards. That usually means having a tangible net worth of less than $15 million and an average net income of less than $5 million over the last two years.
• Agricultural Operations: To apply as an agricultural producer, you must earn at least 50% of your gross income from agricultural operations. That could include crop production, livestock, forestry, and other similar activities. Agricultural producers can be located in rural or non-rural areas, and do not need to meet SBA size standards.

REAP grants are intended for agricultural producers and rural small businesses. Because the program’s focus is on promoting renewable energy in the commercial and agricultural sectors, residential projects are generally not eligible. However, you may explore other federal or state incentives for residential solar installations.

Yes, you can use a REAP grant to fund solar projects that include battery storage. This combination enhances your energy system’s reliability and efficiency, making it an attractive option. Integrating battery storage allows you to store excess energy for use during periods of low solar generation or as backup power during outages. Charging stations for electric vehicles, when paired with a solar installation, are another option to get the most out of your new, renewable system.

You can apply at any time! The next application deadline is December 31, 2024.

After you submit your REAP grant application, it will undergo a competitive review process. The USDA will evaluate applications based on various criteria. These include the project’s viability, impact, and alignment with REAP goals. Your application will be scored on a 100-point scale. If your application is approved, you’ll receive funding to cover a portion of the costs of your solar project. It’s crucial to have a well-prepared application to increase your chances of success.

Yes, you can still claim the federal solar investment tax credit alongside a REAP grant. The Federal Tax Credit is available to businesses installing solar energy equipment. You can combine it with other incentives, including REAP grants. This allows you to maximize your savings and make your solar project more financially attractive. We always advise consulting with a tax professional.

Your journey toward a brighter, more sustainable future begins here. REAP offers an affordable path toward solar, and Solar United Neighbors is here with information to help guide you through the process.

If you’re ready to explore REAP and gain a deeper understanding of how it can empower your business or agricultural venture, we invite you to download our free application guide. Inside, you’ll discover comprehensive insights, expert advice, and actionable steps to harness the potential of solar energy.

Take the first step and download the REAP guide today!