USDA Rural Development Rural Energy for America Program: Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program
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EmailRenewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program
How it Works
The Rural Energy for America Program helps assist agricultural producers and rural small businesses purchase install, and construct renewable energy systems. A food hub business may be interested in this program if it seeks or currently works with renewable energy sources.
Funding Focuses On
Funding provides assistance to renewable energy projects dealing with:
- Renewable 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 may also be used for purchase, installation, or construction of energy efficiency improvement 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 electric irrigation motor
Funding Limit
- The maximum loan amount is up to 75% of project cost.
- Renewable energy systems grants: $1,000,000 maximum.
- Energy efficiency grants: $500,000 maximum.
Qualifications
Must be an agricultural producer where 50% or greater of gross income comes from working with crops, livestock, forestry products, hydroponics, nursery, and aquaculture as well as small businesses in eligible rural areas.
Agricultural producers and small businesses must have no outstanding delinquent federal taxes, debt, judgment, or debarment. Businesses must be located in a city or town with a population greater than 50,000 inhabitants.
Financing Geographic Area
United States