How to Access USDA REAP Grants for Solar Projects

Feb 5

The United States Department of Agriculture (USDA)’s REAP grant program offers agricultural business financing for energy efficiency improvements that lower operating costs and reduce the industry’s considerable environmental impact. Unfortunately, this program could be at risk. Learn more about the REAP grant eligibility and how the program grew from the 2002 Farm Bill.

What Are REAP Grants?

The Rural Energy for America Program (REAP) provides financial assistance and resources for farmers, ranchers, and rural small businesses. Appropriated funds can be used for renewable energy systems and improvements. These improvements make rural businesses more competitive by lowering operating costs while reducing emissions from agricultural equipment and facilities, many of which rely on fossil fuels like diesel and natural gas.

The REAP program grew from two Farm Bill programs introduced in 2002. In 2008, the Energy Efficiency Improvements and Renewable Energy System Program and a related program for energy audits were combined, consolidating the initiatives as REAP.

Historically, REAP has enjoyed bipartisan support. It was passed by a Republican president and Congress in 2002, reauthorized by Democrat and Republican-led legislators in 2014 and 2018, and reinforced by funding from the Inflation Reduction Act in 2022. However, this program is under threat.

REAP Grant Program Uncertain

Under the second Trump Administration, funding associated with IRA funding was paused effective December 31, 2024, in anticipation of funding cuts. At least for now, the USDA is still accepting applications for funding tied to the Farm Bill.

REAP Grant FAQs

As you’d expect, REAP grant applications are relatively detailed and raise many questions among prospective applicants. Keen Technical Solutions will help determine your REAP grant eligibility, meet deadlines, and maximize the funding to increase project return on investment. Get your application started today.

Who is eligible for REAP Grant funding?

Agricultural producers directly engaged in farming or ranching that derive 50% of gross revenue from farming or ranching.
Small businesses located in eligible rural areas and meet the following criteria:

Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
A Cooperative [including those qualified under Section 501(c)(12) of IRS Code]
An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control)
A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.

How can REAP grants be used?

REAP funding can be used to purchase and install renewable energy systems, including:

Biomass
Geothermal
Hydropower
Hydrogen
Small and large wind generation
Small and large solar generation
Ocean tidal, current, and thermal generation
Additionally, REAP funding can cover the costs of purchasing and installing:
High-efficiency HVAC systems
Insulation
Lighting
Cooling or refrigeration units
Doors or windows

All REAP applications must include a completed energy audit that meets USDA’s instructions.

What REAP funding is available?

REAP grants offer a range of funding solutions. Note that the maximum loan guarantee amount varies by year; in 2025, loans will receive an 80% guarantee.

Loan guarantees on loans up to 75 percent of total eligible project costs.
Grants for up to 50 percent of total eligible project costs.
Combined grant and loan guarantee funding up to 75% of total eligible project costs.

Additional grant terms include minimum and maximum funding amounts:

Renewable Energy System Grants

$2,500 minimum, $1 million maximum

Energy Efficiency Grants

$1,500 minimum, $500,000 maximum

Can I access REAP Grants in Michigan?

Absolutely! Michigan agricultural businesses may be REAP eligible. Keen has helped dozens of Michigan businesses access REAP funding for solar projects and energy building envelope improvements.

Learn About REAP Solar Grants with Keen

REAP grants offer affordable, accessible funding for businesses looking to make energy-efficient upgrades. We’ll help you complete your REAP grant application, source equipment, and complete installation, supporting your project from start to finish.

Let’s get your application started; contact a Keen energy consultant today!

Cody Sovis