What is REAP?
The Rural Energy for America Program (REAP) provides guaranteed loan financing and grant funding for farmers, agricultural producers, and rural small businesses to make energy efficiency improvements at their facilities.
Funds are available for a variety of projects that positively impact overhead energy costs. This includes renewable energy systems like solar, wind, geothermal, biomass, and even hydropower. Plus, funding covers other energy efficiency upgrades including HVAC systems, insulation, lighting, doors and windows, and much more.
The Origins of REAP
In 2002 the annual Farm Bill created REAP via the USDA to give rural small businesses and farmers access to renewables and energy efficiency technology. Today, each state receives a pool of funds to distribute based on an application process.
Overall, the program represents a key part of accelerating the clean energy transition and is often an overlooked and underutilized source of funding that helps business owners and farmers reduce overhead energy costs.
REAP Funding & Terms
As the new presidential administration takes over, we expect to see changes to REAP funding and terms. As of January 2025, REAP funding will provide funding for up to 25 percent of project costs. In addition, REAP funds may be combined with additional incentives like the 30 percent federal tax credit (ITC). We will continue to keep this post updated with the latest funding terms and information!
Funding Terms & Additional Information
Loan Terms & Interest Rates
- REAP loans approved in Fiscal Year 2024 will receive an 80 percent guarantee.
- Interest rates are negotiated between the lender and the borrower.
- Rates may be fixed or variable.
- Variable interest rates may not be adjusted more often than quarterly.
Grant Terms
- Renewable Energy System grants are available for $2,500 minimum and $1 million maximum.
- Energy Efficiency Grants are available for $1,500 minimum and $500,000 maximum.
Learn more about terms and additional requirements.
Featured Projects
Cleverdon Farms
Adaptive Ready Rent
IV Stat Inc.
Location: Foley, AL
System Size: 24.48 kW
Grant Funding: $59,885
Location: Fort Walton Beach, FL
System Size: 36.86 kW
Grant Funding: $53,477
Location: Fort Walton Beach, FL
System Size: 19.855 kw
Grant Funding: $35,753
Determining Eligibility
REAP eligibility depends on a handful of factors. Business owners and farmers must be located in a REAP-eligible area. In addition, farmers must earn at least 50 percent of their gross income from agricultural operations. See if you’re eligible using the map above or search for your business address.
All REAP projects require collaboration with your local USDA office and a regional REAP Representative. Energy Consultants at SunFarm Energy can also assist with providing documentation, permits, and other necessary documents. Start your application today!