2024 USDA REAP Grant, Eligibility

USDA & REAP Grants Eligibility

For both groups, in order to be considered, the USDA REAP Grant applicants must:For both groups, in order to be considered, the USDA REAP Grant applicants must:

1. Be financially solvent

2. Not be delinquent or have outstanding federal taxes

3. Be the owner of the business

4. Have no judgment, or debarment in order to be considered.

5. The Rural Energy for America Program can offer reimbursement grants for 50% of your energy project’s costs.

   
   

What Is The USDA REAP Grant?

The Rural Energy for America Program, or better known as the USDA REAP Grant, provides grant funding and guaranteed loan financing to rural small businesses and agricultural producers across the United States, to be used for implementing renewable energy systems or making improvements to overall energy efficiency.

The goal of this program is to increase energy independence in the United States by generating a higher supply of clean energy in the private sector while simultaneously decreasing energy needs. Their hope is that over time, these efforts may reduce energy costs overall for agricultural producers and rural small businesses.

USDA Solar Grants & More

Both loan and grant funds can be used only for specific types of projects, such as solar panel systems, wind power generation, energy-efficiency improvements, and more. A complete list can be found below, however, because we are a solar provide we are only able to help you with obtaining USDA grants for solar and not any other technology.

Renewable Energy Systems:

• Biomass – including biodiesel, ethanol, anaerobic digesters, solid fuels, etc.

• Geothermal – for the generation of electricity or for direct use

• Hydropower – less than 30 megawatts

• Hydrogen

• Wind power generation

• Solar energy generation

• Ocean power generation – tidal, current, or thermal

Energy Efficiency Improvements:

• Installing high-efficiency HVAC systems

• Insulation improvements

• Lighting improvements

• Cooling or refrigeration units or improvement of existing units

• Door and window insulation improvements

• Installation of electric, solar, or gravity pumps for sprinkler pivots

• Transitioning from diesel irrigation motors to electric motors

• Replacing other qualifying inefficient equipment

The funding available includes loan guarantees on loans that cover up to 75% of the total eligible project costs, grants for up to 25% of the total eligible project costs, and combined grant and loan guarantees of up to 75% of the total eligible project costs.

Energy Audit And Environmental Review

The energy coordinator will need to perform an environmental review at the project site any the time of your application. He or she can also be an excellent resource in terms of helping you determine your eligibility and assisting you with your application. Site Surveys are a necessary part of the design & engineering process, to determine the installation process, permitting, electrical load calculations, Unexpected setbacks, most environmental studies can be complete at the time of site survey!
12 Months of recent utility bills are necessary, any upcoming additions, such as pools, garages, shops, in-law suite, RV hook-up, Anything that may raise your utility bill in the recent future will be calculated into your production needs!

How To Get Started: Deadlines & Applications

Applications for grants, loans, and a combination of grants and loans are due by March 31, 2024. Submit applications to your state office. Miss the deadline? Contact us and we’ll remind you when application open for next year.

In order to submit an application, you must be registered with the System for Award Management and have a Data Universal Number System number. Both of these are free, but they can take time, so be sure to take these steps well in advance of when you want to submit your REAP loan or grant application. If you have already done so in the past, there is no need to perform this step again.

Once you have registered with both of those entities, you will just need to follow the application instructions, which can be found on the REAP web page!

Where Do You Fit? Tier 1, 2, Or 3?

1. Tier One: includes projects that will cost no more than $80,000,

2. Tier Two: includes projects that will cost between $80,000 and $200,000, and

3. Tier Three: for projects that will cost more than $200,000.

4. Agriculture, Commercial, Businesses!

Rural Business Enterprise Grant

• Grants made to intermediaries for the assistance of small businesses, their expansion and start- up. Eligible applicants are non- profits, civic, and tribal entities. Grants aren’t competitive above a $200K requestThere is also a Alaska Native Allocation Grants can be for technical assistance, equipment, feasibility studies, business plans, energy audits!

Affordable Energy Center

First Step Obtain Your UEI# sam.gov

Grant Deadlines 2024

March, June, September, December

Eligibility For The Solar ITC

There are a few eligibility qualifications for the Federal Solar ITC. The solar energy system must be newly installed and you must own it outright. You cannot claim the ITC for a system that you are leasing or if you are in a power purchase agreement for energy that’s generated by a system that you don’t actually own yourself.

The system must also be located within the United States. For homeowners, it must be installed at your primary or secondary home, and for business owners, it must be installed on-site on your commercial property. Installation must be completed before the tax credit program expires, and the amount of the deduction will depend on the year in which the project is finished, as outlined above.

To claim the credit, you will simply indicate your purchase of a solar energy system when you file your federal income taxes for the year by completing and attaching IRS Form 5695. Consult your tax professional to ensure that you are eligible for the credit and that you’ve correctly filled out the form. If the credit amount exceeds your federal tax liability amount, you can rollover the unused credit to subsequent years, so long as the incentive program is still active. However, it is a nonrefundable credit, so you will not receive a tax refund for any remaining credit amount.