FARM, RANCH & AGRICULTURE SERVICES
United States Department of Agriculture (USDA)
Rural Energy for America Program (REAP)
Up to 50% Project Cost in GRANT $ AVAILABLE
INFLATION REDUCTION ACT (IRA)
Helping Rural Energy and Utility Bring Affordable, Reliable Clean Energy to Our Communities
GRANT FUNDING TO AGRICULTURAL PRODUCERS AND RURAL SMALL BUSINESSES FOR RENEWABLE ENERGY SYSTEMS
Who Can Apply?
- Agriculture Producers with at least 50% of their GROSS INCOME coming from agriculture operations
- Small Businesses in Eligible Rural Areas
How Can Funds Be Used?
- Renewable Energy Systems - Small Wind 10kW & 15kW Turbines & PV Solar Installations
USDA REAP Grants: USDA announced new improved provisions for their popular farm and rural business grant program, REAP. Wind energy systems now qualify for a 50% grant, there will now be 6 application cycles per year (versus two) and wind applications will not have to compete against solar and efficiency.
The USDA has sufficient funding through last year’s IRA legislation to fund all qualifying wind applications over the next 3-5 years.
Very importantly, the REAP grants can be combined with the ITC tax credits and depreciation to provide an extremely attractive incentive structure. Since the Excel 15 turbine, inverter and many of its tower options are made in America purchasers receive a 40% ITC (30% basic + 10% domestic content bonus). Depreciation can be either 5-year accelerated (MACRS) or 1-year if the customer can use Sec. 179. Combined, these incentives can provide project cost offsets of 95%, or better!!!
