A Guide To USDA REAP Solar Panel Grants For Businesses
The USDA is currently providing grants and loans for solar panel installations through the REAP Program. It offers an opportunity for farmers and small businesses to embrace solar energy while minimizing costs. The Rural Energy for America Program is a government initiative by the USDA that aims to incentivize renewable energy adoption among rural businesses. This includes farms, ranches, and small enterprises in rural areas. Might your company fall into the category for solar panel grants for businesses?
Under the program, eligible applicants can receive solar panel grant funding that covers up to 25% of the total installation costs. What’s more, loan guarantees are available to cover up to 75% of the expenses associated with the solar project.
Note: These grants and loans are distributed on a competitive basis.
Using the Funding
The funding provided by the REAP Program can be used for various purposes. Grants and loans are available for Solar Renewable Energy systems ranging from a minimum of $2,500 to a maximum of $500,000. Similarly, energy efficiency improvements can also be funded through grants and loans, with rebate amounts ranging from $1,500 to $250,000.
The current cost of solar installation is at an all-time low and prices continue to decrease annually. By combining this grant with the 30% tax credit and other state incentives, businesses can significantly reduce the expenses associated with transitioning to solar energy.
Rural Energy for America’s Solar Panel Grant Qualification
To qualify for the REAP grant, certain criteria must be met:
- The business must be located in a rural area with a population of fewer than 50,000 people. The nature of the business is not a determining factor. It can range from a hardware store to a clothing boutique or even a racetrack. Check whether your business address is eligible.
- The project owner must apply for the solar panel grant and only the owner. Ownership of the physical location of the business is not required, but the applicant must have control over the site – and it must be a business – not a residence.
- The business must be financially solvent, capable of generating sufficient revenue to cover the operational and maintenance expenses related to the project. What’s more, the applicant must demonstrate the ability to manage any applicable debt throughout the project duration, for which solar financing can be helpful.
Note: Businesses engaged in farming activities receive additional consideration and can qualify for the grant regardless of their location. To qualify as a farm, the business must generate at least 50% of its gross annual income from agricultural production.
Using the Grant for Things Other Than Solar Panel Installation
The REAP grant can be used for various purposes beyond solar panel installation. It supports the advancement of renewable energy as a whole. That includes the following energy systems:
- Wind
- Geothermal
- Hydrogen
- Biomass
The grant covers energy efficiency improvements, offering opportunities to make small businesses more energy efficient and reduce electricity costs. This includes:
- High-efficiency heating
- Ventilation
- Air conditioning systems
- Energy-efficient doors and windows
- Insulation
- LED lighting
- Cooling/refrigeration units
- Switching from diesel to electric irrigation motors
- Solar, electric, or gravity pumps for sprinkler pivots
- Replacement of any energy-inefficient equipment
With or Without a Grant, Your Business Can Improve Overall Operational Efficiency and Embrace Clean Energy with Solar Power
Lower your heating costs, do something good for the planet, and increase the operational efficiency of your business today. Talk to a representative of Solar Energy Solutions of America about switching over to solar power.
We don’t stop at commercial solar panels, however, we also encourage homeowners to look into our residential solar panels.
Got questions? Talk to one of our experts at 239-339-8727!