REAP — Rural Energy for America Program

What this actually is

A grant for renewable energy ($2,500–$1,000,000) or energy efficiency ($1,500–$500,000) on a farm or rural small business. The federal share is 25% of project cost for most projects; 50% only if the project is a zero-greenhouse-gas system, in an Energy Community under 26 U.S.C. 45(b)(11)(B), an energy efficiency improvement, or from an eligible Tribal entity. Accepted year-round at your local office — there is no deadline to miss. There is also a separate REAP loan guarantee; that is borrowed money and a different thing.

Who qualifies, and what trips people up

Agricultural producers with at least 50% of gross income from the ag operation, or small businesses in areas of 50,000 residents or fewer. Producers may site projects in non-rural areas if tied to an on-site production operation. No delinquent federal taxes, debt, judgment or debarment. Efficiency projects need an energy audit. EVERY project needs an environmental review BEFORE award or construction — installing first is how people lose a REAP grant. 7 CFR Part 4280.