IMPORTANT | POLICY UPDATE

NOV. 2025 REAP STATUS

The REAP (Rural Energy for America Program) is experiencing significant changes and interruptions as of November 2025. Grant and combined grant-loan applications are officially paused until September 30, 2025, due to an overwhelming backlog of applications, and USDA has not yet released new application guidance for Fiscal Year 2026. However, guaranteed loans may still be accepted and processed during this period, with special terms for Fiscal Year 2025, including up to 80% guarantee coverage for eligible projects.

Key Updates and Restrictions

  • Funding Freeze and Delays: Earlier in 2025, the REAP program experienced a funding freeze due to an Executive Order that shifted federal support away from renewable energy. This resulted in delayed payments and paused applications, most of which resumed only in April 2025. The current application cycle, anticipated to open on October 1, 2025, has been delayed due to an ongoing backlog and policy changes.
  • Solar and Wind Project Restrictions: The USDA now excludes ground-mounted solar systems larger than 50kW from REAP grants and loans, and prohibits the use of solar panels manufactured by foreign adversaries. Utility-scale solar farms on productive farmland are no longer eligible for incentives. Projects must demonstrate historical energy usage directly tied to the applicant’s facility, and speculative solar developments are not supported.
  • Preserved Support for Small Projects: REAP continues to offer grants of up to $1 million for qualifying on-farm and rural business renewable energy or energy efficiency projects, with up to 50% project cost coverage. Projects are now more tightly restricted, with a strong emphasis on farmland preservation, food security, and taxpayer accountability.
  • Loan Guarantee Terms: For projects approved in FY 2025, loan guarantees can cover up to 80% of eligible project costs; past years’ limits were lower. Grant awards typically range from $2,500 to $1 million for renewable energy systems, and tax credits may still be applicable for certain solar and energy efficiency investments.

Program Outlook

  • The REAP program remains popular and in high demand, but current USDA guidance is limited, causing uncertainty for new applicants and technical assistance providers. The most recent updates indicate that the USDA is working on releasing new rules and priorities, but has not finalized official guidance for the upcoming grant rounds as of November 2025.
  • Applicants and stakeholders are encouraged to monitor USDA announcements for updated guidance and to plan for future application windows once the current pause is lifted.

In summary, as of November 2025, REAP is no longer accepting new grant proposals, has significantly restricted eligibility for solar projects, and is now prioritizing small-scale, on-farm, and rural business projects. Loan guarantees remain available for qualifying projects; however, future application opportunities depend on USDA’s forthcoming updates and the resolution of the current backlog.

U.S. DEPARTMENT OF AGRICULTURE

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MEET REAP:

The Rural Energy for America Program (REAP) is a remarkable initiative by the U.S. Department of Agriculture (USDA) designed to support rural businesses and agricultural producers in becoming more energy-efficient and sustainable. 

REAP provides financial assistance, grants, and loan guarantees to help companies implement renewable energy systems and efficiency improvements.

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REAP

Who Can Apply?
Agricultural producers with at least 50 percent of their gross income coming from agricultural operations 
Small businesses in eligible rural areas 

NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment, or debarment. 

What types of borrowers are eligible? 
Eligible borrowers include: 

  • Rural small businesses 
  • Agricultural producers 
  • Additional USDA Rural Development programs that support other types of businesses and organizations are included in the OneRD Guarantee Loan Initiative. 

Rural Energy for America Program

The Rural Energy for America Program, or the USDA REAP Grant, provides grant funding and guaranteed loan financing to rural small businesses and agricultural producers across the United States to be used for implementing renewable energy systems or improving overall energy efficiency.

This program aims to increase energy independence in the United States by generating a higher supply of clean energy in the private sector while simultaneously decreasing energy needs. They hope that these efforts may reduce energy costs overall for agricultural producers and rural small businesses over time.

 

Timing
REAP will host six quarterly competitions to obligate $1.05 billion throughout FY 2023 and FY 2024. 
Grants by The Numbers
The maximum grant size was increased from $250,000 to $500,000 for energy efficiency projects and from $500,000 to $1 million for renewable energy systems. 

Federal Share 
The federal share was raised to 50% for all energy efficiency projects, all zero-emission renewable energy projects, and all projects in designated energy communities and projects submitted by eligible tribal entities. 

Underutilized Technology Fund
Under The creation of an Underutilized Technology Fund with an initial infusion of $144.5 million for renewable energy technologies, which comprised less than 20% of the project pool two years before the application year, no single technology may receive more than 50% of the total funding available in each fiscal year, except for years in which all underutilized technology applications have been processed. Applications remain unfunded, with funding still available in the set-aside.

Is Your Business Eligible?

USDA Eligibility Map For REAP Grants

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For both groups to be considered, the USDA REAP Grant applicants must:

  1. Be financially solvent
  2. Not be delinquent or have outstanding federal taxes
  3. Be the owner of the business
  4. Have no judgment or debarment to be considered.

Location Requirements

Agricultural producers may be in either rural or non-rural locations. At the same time, small businesses must be located in rural development areas, defined as an area, not a city or town with 50,000 or more inhabitants, and the urbanized areas surrounding the city or town.

You can use the USDA Eligibility Map to check your business address online to determine eligibility.

LOCATION: REAP ELIGIBILITY MAP

Ready to see if your business qualifies for rEAP?

Funds are approved on a quarterly basis. Act quick before the money is gone!

Program Objective

  • REAP offers guaranteed loan financing and grant funding to agricultural producers, rural small for-profit businesses, co-ops, and tribal businesses.
  • The program aims to support purchasing or installing renewable energy systems (RES) and energy efficiency improvements (EEI) projects.

Grant Funding Highlights

  • REAP grants cover up to 25% or 50% of eligible project costs.
  • Grant awards range from $1,500 to $500,000 for EEI projects and $2,500 to $1,000,000 for RES projects.

Loan Guarantees

  • REAP-guaranteed loans are provided through lending institutions.
  • These loans can finance up to 75% of a project’s total eligible costs with an 80% guarantee.

Eligibility & Program Information

  • Agricultural Producers and Rural Small Businesses
  • Renewable energy systems (RES) and energy efficiency improvements (EEI) projects

Important Considerations

  • Do not incur project expenses until you have received a complete application letter or grant award.
  • Applications are accepted year-round; however, only complete applications with environmental reviews compete in funding cycles.

Upcoming Funding Cycles for Grants

  • September 30, 2023
  • December 31, 2023
  • March 31, 2024
  • June 30, 2024
  • September 30, 2024
LOCATION: REAP ELIGIBILITY MAP

How REAP Funds Can Be Used

  • Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels)
  • Geothermal for electric generation or direct use
  • Hydropower below 30 megawatts
  • Hydrogen
  • Small and large wind generation
  • Small and large solar generation
  • Ocean (tidal, current, thermal) generation

Funds also can be used to buy, build, and install energy efficiency improvements such as:

  • High-efficiency heating, ventilation, and air conditioning systems (HVAC)
  • Insulation
  • Lighting
  • Cooling or refrigeration units
  • Doors and windows
  • Electric, solar, or gravity pumps for sprinkler pivots
  • Switching from a diesel to an electric irrigation motor
  • Replacement of energy-inefficient equipment
  • Agricultural producers can also use guaranteed loan funds to install energy-efficient equipment and systems for agricultural production or processing.

REAP provides financial assistance, grants, and loan guarantees to help companies implement renewable energy systems and efficiency improvements.

REAP PROGRAM HIGHLIGHTS

PART OF THE INFLATION REDUCTION ACT

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Financial Support

REAP offers financial incentives that can significantly offset the costs of adopting renewable energy systems and implementing energy efficiency upgrades. These incentives can be grants, guaranteed loans, or a combination of both.

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Eligible Projects

The program covers many projects, including installing solar panels, wind turbines, energy-efficient lighting, heating and cooling systems, biomass projects, and more. These improvements reduce energy consumption and lead to substantial cost savings over time.

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Business Benefits

By participating in REAP, businesses can experience many benefits. They can lower operational expenses, enhance competitiveness, and improve environmental sustainability. Moreover, adopting energy-efficient technologies often leads to increased marketability and consumer appeal.

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Application Process

The application process for REAP is designed to be accessible and straightforward. Businesses can work with experts like us to navigate the paperwork and meet all requirements.

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Positive Environmental Impact

Participating in REAP reduces greenhouse gas emissions and reliance on non-renewable energy sources. This demonstrates a commitment to environmental stewardship and supports the global transition to cleaner energy alternatives.

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Rural Focus

REAP primarily targets rural businesses, agricultural producers, and agricultural-based businesses. This ensures that rural communities can access the benefits of energy efficiency and renewable energy technologies, leading to overall economic development.

TPI EFFICIENCY

Our Role In REAP

As your partner in energy efficiency and sustainability, we are well-versed in the intricacies of the REAP program. We offer comprehensive support throughout the process, from assessing your eligibility and identifying suitable projects to preparing and submitting applications.

We aim to maximize your benefits from the REAP program and help you achieve your energy and financial objectives.

By collaborating with TPI Efficiency and leveraging the opportunities provided by REAP, you’re taking a proactive step toward a more energy-efficient future for your business while contributing to the well-being of your community and the planet.

The Rural Energy for America Program presents a fantastic chance for your business to embrace renewable energy and energy-efficient practices.

By participating in REAP, you can access financial incentives that make sustainable improvements an attainable and cost-effective reality.

As your dedicated partner, we are here to guide you through every step of the process, ensuring you unlock the full potential of REAP and enjoy a brighter, more sustainable future.

FUNDING

The Rural Energy for America Program (REAP) offers various types of funding to support energy efficiency and renewable energy projects for rural businesses and agricultural producers. 

Here are the main types of funding available through the REAP program:


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Grants

EAP provides competitive grants to help cover some of the costs associated with eligible energy efficiency improvements and renewable energy projects. These grants can be a significant financial boost, reducing the upfront investment required for implementing energy-saving technologies.

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Loan Guarantees

The program offers loan guarantees to encourage lenders to finance rural businesses and agricultural producers for energy efficiency and renewable energy projects. A loan guarantee from REAP can help improve the terms and conditions of the loan, making it more attractive for borrowers.

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Grants for Energy Audits and Assessments

REAP also offers grants specifically for energy audits and assessments. These grants can cover the cost of hiring professionals to conduct energy audits, identify opportunities for energy savings, and develop energy efficiency plans.

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Renewable Energy Systems Grants:

Grants are available to install renewable energy systems, such as solar panels, wind turbines, biomass systems, and more. These grants support the adoption of sustainable energy sources, helping businesses reduce their reliance on traditional fossil fuels.

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Energy Efficiency Improvement Grants:

REAP offers grants for energy efficiency improvements, including upgrades to lighting, heating, ventilation, and cooling systems, insulation, weatherization, and other measures that lead to reduced energy consumption and lower utility bills.

What types of borrowers are eligible?

Eligible borrowers include:

• Rural small businesses • Agricultural producers Additional USDA Rural Development programs that support other types of businesses and organizations are included in the OneRD Guarantee Loan Initiative.

What are the borrowing restrictions for loan guarantees?

• Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence. • Private-entity borrowers must demonstrate that loan funds will remain in the U.S.

What is an eligible area?

Businesses must be located in rural areas with populations of 50,000 or fewer. You can check our database of eligible business addresses at this link: https://go.usa.gov/xJnGQ. Agricultural producers can be located in rural or nonrural areas.

Local: 216.453.2500 • Toll-Free: 877.244.0182

TPI Takeaway

It’s important to note that the availability of funding and the specific amounts may vary yearly based on the program’s budget and priorities.

Additionally, eligibility criteria and application requirements may apply, so it’s recommended to thoroughly review the program guidelines and consult with experts who are familiar with the REAP program.

Businesses and agricultural producers interested in accessing funding through the REAP program should work with knowledgeable partners who can guide them through the application process and ensure compliance with program requirements.

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Information Required to Apply for a REAP Grant

Financial Information:

Three years back, current and 2 years forward pro forma

Bills:

12 months of utility bills to document price bid for business energy

Funding Information - How will the Remaining Costs Be Funded?

This factors into the scoring; you must be able to provide how it will be paid for.

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REAP form
Local: 216.453.2500 • Toll-Free: 877.244.0182

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