Rural Energy for American Program (REAP)

REAP grants cover up to 50% of renewable energy project costs, up to $1 million. Over two years, the U.S. Department of Agriculture is awarding $2.1 billion to renewable energy and energy efficiency projects for rural small businesses and agricultural producers.

We make this funding easier to access.

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or email greg.miller@aidygrants.com

REAP Information

The Rural Energy for America Program (REAP) is a U.S. Department of Agriculture grant program that has been around for decades. With the recent passage of the Inflation Reduction Act, the program has seen a large increase of funding.

Eligibility

REAP is intended for rural small businesses or agricultural producers.

Rural Small Business: Must be in a rural area (as defined by this map) and must be a small business (as defined by the SBA Size Standards).

Agricultural Producer: More than 50% of revenue must come from agricultural production. Agricultural producers do not need to be in a rural area.

Other eligibility factors:

Construction cannot begin on the project until after the application is submitted.
The project must be for primarily commercial use. Meters shared with residences are fine so long as more than 50% of the electricity goes toward commercial use.

USDA provides FAQs at the bottom of their main webpage.

Am I competitive?

There is a lot of money going out through this program, so many applicants are being awarded.

Projects are scored based on five main criteria:

Previous REAP recipient: If you are not a previous recipient of REAP, you will score perfectly in this category.
A commitment of Matching Funds: If you can show that the remainder of the project can be paid for by the applicant (either through a letter from the bank, a bank statement, or another method), you will get full points.
Environmental benefits: Projects that do not emit greenhouse gases will score well.
Distressed and Disadvantaged: Projects in distressed and disadvantaged areas are prioritized and get an extra 15 points (out of 100).
Payback Period: A payback period of less than 10 years scores best.
Energy generated and replaced: Projects that can offset more energy per grant dollar requested will score better. Therefore, solar projects that include the price of a battery, will score worse since the battery does not generate more energy but makes the project more expensive.

Want to estimate your score? Use our eligibility and score checker.

Deadlines

There are two more deadlines left where a lot of money is going out and where 50% of project costs can be covered: June 30th and September 30th.

These applications can take time, so it is best to start now.

Application Process

REAP applications require several details from the applicant and vendor. Aidy has digitized the entire process and provides an easy platform to keep track of the documents you have submitted and to know what else is needed. Once all information is submitted, we will handle the rest of preparing the application.

From the applicant: *typically

Proof of Matching Funds: A bank statement or letter from the bank showing the rest of the project will be covered.
Long-term lease or deed: Proof the applicant will own the property for 25+ years.
12 months of utility bills
Financial statements (if >$200k project): past three years' income statements and balance sheets, along with two years of proformas
UEI: Registration with sam.gov to get a unique entity identifier. We help applicants through this process.

From the installer *typically

Installer proposal: Cost breakdown
Energy generation report, including technical specs
Excess energy agreements: Any applicable PPA or net metering agreement for excess energy

We will also need to collect basic information via a 5-10 minute questionnaire for the applicant and a few questions for the installer.

Our portal makes this easy.

When you use Aidy, you will be sent a portal. All you have to do is log on, answer some questions, then upload your documentation.