OPPORTUNITY REPORT:

Rural Energy for America Program (REAP)

Tuesday, April 25, 2023

Program Summary

Key information at a glance:

Opportunity Title: Rural Energy for America Program (REAP)
Opportunity Number: RDBCP-REAP-RES-EEI-2023-2024
Agency: Department of Agriculture, Rural Business-Cooperative Service
Total Program Funding: $1,055,003,000
Type of Funding: Grant, guaranteed loan, and grant and guaranteed loan combined funding.
Award Ceiling: $500,000- $1,000,000
Cost Match: 25%-50%
Expected Number of Awards: 9000
Deadline: Applications accepted year-round through September 30, 2024 (See Key Dates below).

Looking for assistance with your application? Click here to learn how CFS can help.

Program Overview

The U.S. Department of Agriculture’s Rural Business-Cooperative Service has begun accepting applications for the second round of funding under the Rural Energy for America Program (REAP). The Agency anticipates awarding $1.055 billion in Inflation Reduction Act funds through grants, guaranteed loans, and combined grants and guaranteed loans. Small businesses and agricultural producers are eligible to apply for funding to purchase and install renewable energy systems and energy efficiency improvements in rural areas. The goal of the program is to reduce overall energy costs and consumption, supporting energy independence through investments in the private sector.

The types of applications offered by REAP are 1) Energy Audit and Renewable Energy Development Assistance (EA/REDA) grants, 2) Renewable Energy Systems and Energy Efficiency Improvements (RES/EEI) grants, 3) RES/EEI and Energy Efficient Equipment and Systems (EEE) guaranteed loan funds, and 4) RES/EEI combined grant and guaranteed loan funds. RES grants range from a $2,500 minimum to a $1 million maximum, and EEI grants range from a $1,500 minimum to a $500,000 maximum. For RES/EEI/EEE loan guarantees or the loan guaranteed portion of a combined funding request, the minimum REAP guaranteed loan amount is $5,000 and the maximum amount of a guaranteed loan for a borrower is $25 million.

Eligible Projects

Renewable Energy System (RES) Project Examples:

Biomass (such as biodiesel and ethanol, anaerobic digesters, and solid fuels).
Geothermal for electric generation or direct use.
Hydropower below 30 megawatts.
Hydrogen.
Ocean (tidal, current, thermal) generation.
Small and large wind generation.
Small and large solar generation.

Energy Efficiency Improvement (EEI) Project Examples:

Cooling or refrigeration units.
Doors and windows.
Electric, solar or gravity pumps for sprinkler pivots.
High efficiency heating, ventilation and air conditioning systems (HVAC).
Insulation.
Lighting.
Replacement of energy-inefficient equipment.
Switching from diesel to electric irrigation motor.

Key Priorities

Rural Development key priorities are as follows:

Assisting rural communities recover economically through more and better market opportunities and through improved infrastructure;
Ensuring all rural residents have equitable access to RD programs and benefits from RD funded projects; and
Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities.

Eligibility

Eligible Applicants are as follows:

Agricultural producers
- Agricultural producers can be located in rural or nonrural areas.
Small businesses located in rural areas with populations of 50,000 or fewer

Cost Sharing or Matching: