Solar Energy Solutions

Agricultural Solar Financing – REAP Grants

We’ve helped many agricultural operations and small rural businesses obtain REAP grants for a part of their solar installation. The USDA 2023 REAP program will provide 40% on qualifying solar projects under the IRA in 2023. With that REAP grant, the 30% ITC federal tax credit, and accelerated depreciation, many agriculture projects see a three to five years project payback. After that, all the power that the solar panels provide is free. In addition, 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 help pay 40% of the cost of solar installations and other energy-related expenses for small businesses. Agricultural producers from working farm operations (51% of income) or rural small businesses in 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 of $20,000 and under. If your project is eligible, you could receive free money for 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 with 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 can 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. Click here to type your address or location into the search box.

When are the Funding Deadlines for REAP Grants?

With the additional funds from the IRA, there are additional rounds for funding. Request a quote now to talk with a specialist to see if your project may qualify.

Normally, For all size systems grant applications are due by March 31. For $20,000 or smaller grants ONLY, they are due October 31

How Do I Apply for a REAP Grant?

We work closely with you and grant writers with years of experience 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 calculating the rating, they can determine whether your project would score competitively in the 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. For example, 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 with a strong track record of winning successful awards. Plus, a client’s grant application isn’t just “a one-shot deal.” Based on state and federal REAP allocations, customers are eligible to compete in future funding rounds.

How Can I Learn More About REAP Grants?

Download this fact sheet:
Fact Sheet

Talk to a Rural Business-Cooperative Service State Energy Coordinator near you if you have questions. Or request a quote and speak with one of our experts.

How Can I Fund The Remaining 50% of Project Costs?

In addition, to REAP Grants, a solar system will receive a 30% tax credit on the total cost of the solar project. Also, the USDA offers low-interest loans that can cover a portion of project costs. Loan review and approval typically take only two weeks and are not limited to the calendar or budget.

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