USDA will provide $145 million in grants and loans for clean energy projects in rural areas

The U.S. Department of Agriculture is making $145 million in funding available for 700 loans and grants through the Rural Energy for America Program (REAP).

The initiative aims to help small business owners and farmers in rural areas reduce energy costs, generate new income and increase the resilience of their operations. Beneficiaries will be able to obtain guaranteed financing in the form of loans and subsidies for photovoltaic, wind, hydroelectric and geothermal installations. They can also use the funds to purchase more energy-efficient equipment, such as grain dryers, HVAC systems and refrigeration equipment.

Tracy Sabetta, a renewable energy advocate and consultant at Initiative Consulting, hopes the program will help normalize renewable energy in Appalachia and enable rural communities to move toward environmental sustainability.

“We have a recipe for changing the way Appalachians view energy generation from an economic perspective, a public health perspective and an employment perspective,” Sabetta said. “And as we all know, once people see that something works well and delivers the promised benefits, it stops being scary and starts feeling normal.”

Sabetta said REAP will provide renewable energy and energy efficiency solutions to those who need them most, and additional benefits of the program include savings and emissions reductions for farms and rural communities.

To ensure that the program benefits rural communities, REAP will only fund projects located in areas with a population of 50,000 or less. REAP will provide loan guarantees up to 75% of the total eligible project costs, grants up to 50% of the total eligible project costs, or combined grant and loan guarantee financing up to 75% of the total eligible project costs.

The U.S. Department of Agriculture will be accepting applications for energy loans for farmers and small businesses from June 30 to September 30.