Agricultural solar incentives
Make your agriculture solar panel installation more affordable
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We’ve helped many agricultural operations and small rural businesses obtain REAP grants for a part of their solar installation. The USDA REAP program can provide 25% on qualifying solar projects. Many agricultural projects see a 3-6-year payback when they combine the REAP grant, the 30%-40% ITC federal tax credit (which is still available to Commercial and nonprofit organizations), and accelerated depreciation. After that, all the power that the solar panels provide is free. In addition, all the solar panels we install come with a minimum 25-year output warranty, so that’s a lot of free power for your operation.
SOLAR REAP GRANTS FOR AGRICULTURE
USDA REAP (Rural Energy for America Program) grants help pay 25% 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, Ohio, and Virginia! The program doesn’t apply to nonprofits, schools, or municipal entities.
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 25% of your equipment and installation costs.
SES works 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.
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.
For all system sizes, grant applications are normally due by March 31. For grants of $20,000 or less, they are due October 31.
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.
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.
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 prepare blueprints, while an engineer or mortgage broker may be paid for similar professional services. This grant preparation fee is based on the system or installation size. Each grant submission requires completing 7 different federal forms; gathering and compiling tax forms, employee lists, and lease documents; setting up a DUNS number and CAGE code; performing energy calculations and audit figures; and a multitude of other tasks. The average packet contains 85 documents. Typical fees are in the $ 1,000–$ 2,500 range, with an upfront cost and another payment made only if your grant succeeds.
If you win an award, you essentially receive free money toward the product purchase and installation costs. Do note that the grant funds received are taxable.
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.
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.
In addition to REAP Grants, a solar system can receive up to a 50% tax credit on the total cost of the solar project when domestic-content materials are used, and the solar project is located in an energy community tax credit area. 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.
