Agricultural Financing – REAP Grants
We’ve helped many agricultural operations and small rural businesses obtain grants for a part of their solar installation. The USDA REAP program may provide up to 50% on qualifying solar projects under the IRA in 2023. With that grant and the 30% ITC federal tax credit, agriculture project may benefit from a less than five years project break even point. After that all the power that the solar panels provide is free. All the solar panels we carry have at least a 25 year output warranty so that’s a lot of free power for your operation.
Solar REAP Grants for Agriculture
How Does the USDA REAP Grant Program Work?
USDA REAP (Rural Energy for America Program) grants may help pay up to 50% of the cost of solar installations and other energy-related expenses for small businesses. Agricultural producers from working farm operations (50% of income) outside of 50,000 population centers are eligible. not sure if you’re eligible? Click here to find out. That’s most of Kentucky, Indiana, Illinois and Ohio! The program doesn’t apply to nonprofits, schools, or municipal entities.
How Much REAP Grant Money is Awarded?
Each state is awarded a share of the overall REAP grant funds and there are two eligibility rounds. The first round considers all project sizes and the deadline is in the spring of each year. The second round considers projects with funding under $20,000. If your project is eligible, you could receive free money — up to 50% of your equipment and installation costs in 2023 under the IRA. Projects up to $500,000 can be funded with a minimum size of $5,000.
Each state is allocated a varying annual budget, and it is still rare that submissions exceed available funding. If your project is eligible, you could receive free money — up to 50% of your equipment and installation costs. We work with grant writers that have a strong track record (greater than 90%) of winning successful grant awards. Plus, a client’s grant application isn’t just “a one-shot deal.” Customers are eligible to compete in future funding rounds, based on state and federal REAP allocations.
What if I Have a Solar Project or Energy-Saving Equipment I Want to Purchase?
The first thing you want to do is see if you are eligible. You can do so by clicking here and typing your address or location into the search box.
When are the Funding Deadlines for REAP Grants?
For $20,000 or less grants AND grant requests greater than $20,000: Due: April 1
For $20,000 or less grants ONLY: Due: October 31
How Do I Apply for a REAP Grant?
We work closely with you and grant writers who have years of experience in assisting small businesses. They charge a small service fee to complete the forms, gather the necessary documents, and expedite the state and federal submission packet. Please click the Request-a-quote button and we can help you explore your options.
How Do I know if My Project Will Qualify for a REAP Grant?
SES works on your behalf with experienced grant writers who run a ‘pre-score’ calculation to determine whether your project is likely to be awarded. After the rating is calculated, they can determine whether your project would score competitively on a full application. This saves you time and money.
What is Meant by ‘Small Service Fee?’
REAP applications can take 25 hours or more to complete. And even though a grant is not guaranteed, grant preparation is just like any other professional service you pay for. When building a house, your architect is paid to design blueprints, while an engineer or mortgage broker may be paid a fee for similar professional services. This grant preparation fee is based on the system or installation size. Each grant submission requires the completion of 7 different federal forms; the gathering and compilation of tax forms, employee lists, and lease documents; the setup of a DUNS number and CAGE code, energy calculation and audit figures and a multitude of other things. The average packet contains 85 documents. Typical fees are in the $1000 – $2500 range, with an upfront cost and a portion that is only paid if your grant succeeds.
What is the benefit of a REAP Grant?
If you win an award, you essentially receive free money toward the product purchase and installation costs.
Is it Difficult to Win a REAP Grant?
We work with grant writers that have a strong track record of winning successful grant awards. Plus, a client’s grant application isn’t just “a one-shot deal.” Customers are eligible to compete in future funding rounds, based on state and federal REAP allocations.
How Can I Learn More About REAP Grants?
Download this fact sheet:
Talk to a Rural Business-Cooperative Service State Energy Coordinators near you if you have questions. Or request a quote and talk with one of our experts
How Can I Fund The Remaining 50% of Project Costs?