Explaining the 2023 REAP Grant Requirements
The REAP (Rural Energy for America Program) grant is a great way for businesses in rural and agricultural communities to reduce their energy bills and help the environment by leveraging renewable energy sources. The US Department of Agriculture (USDA) recently announced some exciting changes coming to the program. These changes will take effect in March 2023 and should make renewable energy more accessible than ever, resulting in improved sustainability and resilience in rural America.
Overview of the REAP Grant
The REAP Grant not only provides commercial solar opportunities for agricultural producers and rural small businesses, but it also offers grant funding and loan financing to help them further their sustainability goals, acquire energy efficient equipment, or install renewable energy systems all together. This grant is incredibly beneficial to any agricultural strategy since it significantly reduces the cost while increasing the reliability of energy needed to continue running operations. As a result of taking advantage of the REAP Grant, agricultural producers can receive incentives such as tax credits while diminishing their overall energy costs.
- Grants covers up to 40% of total eligible project costs (increased from 25% from before the Inflation Reduction Act)
- Loan Guarantees can cover up to 75% of total eligible project costs
- Combined can cover up to 75% of total eligible project costs
Funding commercial solar projects has never been easier thanks to grants and loan guarantees. Grants now offer up to 40% coverage of project costs and loan guarantees increase that amount to an incredible 75%. Combined, these two financing sources can cover up to three-quarters the total cost of your commercial solar project – making it accessible and funding a sustainable energy solution.
- Minimum Grant Request: $2,500
- Maximum Grant Request: $1 million
- Minimum Loan Guarantee: $5,000
- Maximum Loan Guarantee: $25 million
The program provides financial assistance up to $1 million, so it can make all the difference in terms of getting your project off the ground. Even if your project isn’t quite on that scale, the REAP Grant has got you covered with funding requests starting at $2,500.
The guaranteed loan assistance offers commercial loans of up to $25 million that are federally-guaranteed. This program is perfect for commercial solar businesses as it has very reasonable terms and fees. Furthermore, REAP ensures applicant eligibility by requiring a willing lender. All appraisals, requirements for equity, collateral and other conditions must be discussed between the borrower and lender in order to ensure satisfaction on both sides of the deal.
2023 REAP Grant Eligibility
Agricultural producers, non-profit organizations, and small commercial businesses in towns of 50,000 people or less are in luck – the Rural Energy for America Program (REAP) provides support to deploy commercial solar systems that can reduce reliance on traditional energy sources. Solar energy is a valuable resource for commercial producers and small businesses, as it not only saves money on electricity costs but also serves to reduce their carbon footprint. With REAP’s help, commercial producers and rural business owners are able to make the transition towards renewable energy while continuing to meet their bottom line. You can review REAP Grant eligibility at the US Department of Agriculture’s website.
For commercial solar energy projects, the REAP grant can be utilized to cover a vast array of costs associated with engineering, installation, and operational costs that come with such project. Eligible costs are financing for equipment purchase, installation, retrofitting and improvements for facility operations. This grant can also be used to pay for professional service fees related to commercial solar energy projects along with license and permit fees needed. What’s more, working capital and loan guarantees related to land acquisitions can also be covered by the REAP grant when applicable.
If you’ve been looking for ways to switch to commercial solar energy, then you should take advantage of the REAP grant program before March 31st 2023. This program is designed to help commercial entities reduce their energy costs by offsetting some of the up-front costs associated with making the switch to renewable energy sources such as solar. Not sure where to start? Genie Solar’s team can help you understand your eligibility and even process your application for you. Now is the time to act, so contact Genie Solar Energy today.