RURAL ENERGY FOR AMERICA PROGRAM (REAP)

The Rural Energy for America Program (REAP), administered by the USDA Rural Development, provides grants and guaranteed loan financing to rural small businesses and agricultural producers for renewable energy systems and energy efficiency improvements.

• REAP supports the installation of renewable energy systems and energy efficiency upgrades to mitigate climate change. Eligible renewable energy technologies include solar, wind, hydrogen, hydropower, geothermal, biomass, and ocean energy. Energy efficiency improvements cover a range of upgrades, including insulation, lighting, refrigeration, HVAC systems, doors, windows, and the transition from diesel to electric irrigation motors or the installation of solar, electric, or gravity pumps for sprinkler pivots.
• The program's funding structure consists of mandatory and discretionary appropriations. The 2018 Farm Bill established mandatory annual funding of $50 million starting in fiscal year 2014 and authorized $20 million in discretionary annual funding through fiscal year 2023. For fiscal year 2022, Congress appropriated $50 million in mandatory and $12.9 million in discretionary funding. Additionally, the Inflation Reduction Act provided approximately $1.7 billion for REAP and increased the maximum federal cost share for grants from 25 percent to 50 percent.
• REAP utilizes a three-tiered application process based on project cost to determine the level of evaluation and oversight. Tier 1 is for projects costing no more than $80,000; Tier 2 is for projects between $80,000 and $200,000; and Tier 3 is for projects costing $200,000 or more. The application process is designed to be most simplified for Tier 1 and increasingly comprehensive for subsequent tiers.
• The program provides competitive grants to eligible entities—such as tribal, state, or local governments, land-grant colleges, rural electric cooperatives, or public power entities—to assist agricultural producers and rural small businesses with energy audits and renewable energy development. These grant recipients are limited to using no more than 5 percent of the grant for administrative expenses and must require the end-user to pay at least 25 percent of the energy audit cost.

APA

Environmental and Energy Study Institute (2023). RURAL ENERGY FOR AMERICA PROGRAM (REAP). https://www.eesi.org/files/Farm-Bill-2023-Side-by-Side-Rural-Energy-for-America-Program-REAP.pdf

Chicago

Environmental and Energy Study Institute. RURAL ENERGY FOR AMERICA PROGRAM (REAP). 2023. https://www.eesi.org/files/Farm-Bill-2023-Side-by-Side-Rural-Energy-for-America-Program-REAP.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=RURAL ENERGY FOR AMERICA PROGRAM (REAP) |date=24 February 2023 |url=https://www.eesi.org/files/Farm-Bill-2023-Side-by-Side-Rural-Energy-for-America-Program-REAP.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2023rural, author = {{Environmental and Energy Study Institute}}, title = {{RURAL ENERGY FOR AMERICA PROGRAM (REAP)}}, institution = {Environmental and Energy Study Institute}, year = {2023}, month = feb, url = {https://www.eesi.org/files/Farm-Bill-2023-Side-by-Side-Rural-Energy-for-America-Program-REAP.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }