Section 9007 – The Rural Energy for America (REAP) Program, through USDA-Rural Development, offers Grants, and combination grant/guaranteed loans to help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements in rural areas.
Who is eligible for financial assistance?
- An agricultural producer (individual or entity) directly engaged in the production of agricultural products and obtains at least 50% or greater of their gross income from their agriculture business.
- A rural small business – an entity is considered a small business in accordance with SBA’s (Small Business Administration) small business size standards (by NAICS codes).
- Non-profit organizations and public entities are not eligible.
- Residential projects are not eligible.
What’s costs are eligible????????
1. Post application purchase and installation of equipment (new, refurbished, or remanufactured)
2. Post application construction or project improvements
3. Energy audits or assessments
4. Permit and license fees
What’s Not Eligible — agricultural tillage equipment, used equipment, and vehicles.
The project expenses must be identified as part of the new system and must show that the new system will save energy. A bin is eligible if it is a part of the drying and cooling system. Grain Legs, electrical work, concrete, rock, crane rental, air systems, etc are eligible parts of the grain drying system.
An Energy Audit is required for all Energy Efficiency projects over $50,000. Energy auditors you can use:
|The Energy Group 515-564-1045||Alliant Energy Customers 641-422-1737|
|Consumer’s Energy 641-752-1593||Jo-Carroll Energy 800-858-5522 x1209|
|Energy Solutions-OTB 641-590-4400|
The project must be located in a rural area – less than 50,000 populations.
We encourage you to start planning your project now. REAP Energy Grant Applications can be submitted anytime.
Call our office for more information……