Rural Energy for America Program — grants covering up to 50% of solar panels, energy-efficient equipment, and renewable energy systems.
Time to Apply
2-4 weeks to prepare application; quarterly deadlines
Cost to Apply
Free to apply. Energy audit costs $500-$2,000 (may be subsidized by your state).
Where to Apply
USDA Rural Development state office or grants.gov
Complexity
Medium-High — requires energy audit from certified auditor
Your farm or business must be in an area with population under 50,000. Check your address at rd.usda.gov/eligibility. Most areas outside major metros qualify. You do NOT need to be a farmer — any rural small business is eligible.
Tip: Check eligibility at rd.usda.gov — the tool is free and gives you an instant answer
REAP requires an energy audit (for efficiency projects) or a technical report (for renewable energy systems like solar). Hire a certified energy auditor or work with your solar installer to prepare the required documentation.
Tip: Many state energy offices offer free or subsidized energy audits — check before paying full price
Obtain at least one detailed quote from a qualified contractor or installer. The quote should itemize equipment, labor, and total project cost. REAP calculates the grant as a percentage of the total eligible cost.
Tip: Get 2-3 quotes for the best price — REAP pays a percentage of your actual cost, so lower costs still mean a smaller grant but less out-of-pocket
File through grants.gov or your USDA Rural Development state office. You'll need SF-424 (standard federal form), the energy audit/report, vendor quotes, your business financial statements, and a project description. REAP typically has quarterly application windows, though deadlines may shift due to program demand — check rd.usda.gov for current dates.
Tip: Apply as early as possible — REAP has been oversubscribed recently, so earlier applications have better odds
If approved, you'll receive a grant agreement. Install the project according to the approved plan, keep all receipts and invoices, and submit them for reimbursement. REAP reimburses up to 50% of project cost for zero-emission renewable energy systems.
Tip: You pay upfront and get reimbursed after installation is complete and verified
REAP grants cover up to 50% of project cost for zero-emission renewable systems (solar, wind, geothermal) and up to 25% for energy efficiency improvements. Combine with the federal solar tax credit (30%) and you could cover 80% of a solar installation.
Smaller projects ($20K-$80K) tend to have higher approval rates. You don't need a massive solar farm — a rooftop array on your barn qualifies.
REAP is one of the least competitive USDA grants because many eligible rural businesses don't know about it. If you're in a qualifying area, your odds are good.
The energy audit itself can reveal savings opportunities even if you don't get the REAP grant. It's a worthwhile investment either way.
Assuming you need to be a farmer — REAP is for ANY rural small business (shops, restaurants, offices, clinics) in areas under 50,000 population.
Starting installation before the grant is approved — REAP won't reimburse work done before your agreement is signed.
Using an unqualified energy auditor — the audit must meet REAP's technical requirements. Use USDA's list of qualified auditors or ask your Rural Development office.
Missing the application deadline — REAP typically has quarterly windows, but dates may shift due to high demand. Check rd.usda.gov for the current schedule.
Application to award: 2-4 months. Installation: per your project timeline (typically 3-12 months).
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