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AUGUST 2026: REAP STATUS

USDA’s Rural Energy for America Program (REAP) is currently not accepting or awarding new grants for renewable-energy systems or energy-efficiency improvements. USDA is revising the grant regulations, and it has not issued an FY 2026 grant Notice of Funding Opportunity. REAP guaranteed loans remain available and are being accepted.

Grant status

  • New FY 2026 REAP RES/EEI grant applications are closed.

  • No additional grants will be awarded under the October 16, 2024 funding notice; USDA says that notice will be rescinded.

  • The pause applies to both IRA-funded applications (previously up to a 50% federal share) and Farm Bill-funded applications (previously up to a 25% share), unless an applicant already has a fully executed Financial Assistance Agreement.

  • Applicants with pending or paused applications—including those awaiting environmental review or under appeal—will not move forward as filed. They will be able to submit a new application once the revised rule and new NOFO are released.

Why it is paused

USDA Rural Business-Cooperative Service says it is updating 7 CFR 4280, Subpart B to comply with Executive Order 14315, “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources.” The agency has not provided a date for the new regulations or reopening.

What remains available

REAP’s guaranteed-loan program is still active for FY 2026 through the OneRD guarantee framework. The program page says loan guarantees can support up to 75% of eligible project costs, subject to lender underwriting and USDA requirements. Certain solar-PV and wind projects can qualify, but applicants should review the current “Strong Stewardship” guidance with their lender and USDA state energy coordinator.

Practical implication

For an efficiency project—such as HVAC, lighting, refrigeration, insulation, or controls—the immediate path is a REAP-guaranteed loan rather than counting on a grant award. It is still sensible to keep energy audits/assessments, technical specifications, bids, environmental documentation, SAM registration, and rural-eligibility materials ready so a future grant application can be rebuilt quickly under the revised rules. Energy-efficiency projects require an energy audit or assessment, depending on project cost.

Previously obligated REAP awards were separately released by USDA in March 2025; that action does not reopen funding for new grant awards.

Rural Energy for America Program

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.

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 implement renewable energy systems or improve overall energy efficiency.

This program aims to increase energy independence in the United States by increasing the supply of clean energy in the private sector while simultaneously reducing energy demand. 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.

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 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.

Ampica Energy Solutions

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 Ampica 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.

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.

Rural Energy for America Program

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.

The Ampica Advantage

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
REAP form
Local: 216.453.2500 • Toll-Free: 877.244.0182

What is the USDA REAP grant?

The USDA REAP grant is a funding opportunity under the Rural Energy for America Program that helps agricultural producers and rural small businesses pay for renewable energy systems and energy efficiency improvements. In practical terms, the USDA REAP grant is designed to lower the cost of projects like solar, HVAC upgrades, lighting, insulation, and other efficiency measures that reduce energy use or support cleaner energy generation.

What does the Rural Energy for America Program cover?

The Rural Energy for America Program covers two main types of projects: renewable energy systems and energy efficiency improvements. Eligible uses include solar, wind, biomass, geothermal, hydrogen, hydropower below 30 megawatts, and ocean energy, along with efficiency upgrades such as high-efficiency HVAC, lighting, refrigeration, insulation, doors, windows, and equipment replacement. The program also includes guaranteed loan financing in addition to grants.

Who qualifies for a REAP grant?

In general, USDA REAP eligibility is limited to agricultural producers and rural small businesses. Agricultural producers typically must be directly engaged in agricultural production, and rural small businesses must meet SBA size standards and be located in an eligible rural area. Some summaries also note that agricultural producers generally need at least 50% of gross income from agricultural operations.

Is the USDA REAP program currently accepting applications?

As of the latest USDA information I found, the agency is not accepting REAP grant applications at this time, though guaranteed loan applications may still be submitted. A 2026 update also indicates that the grant portion is paused while USDA develops new regulations, so the USDA REAP grant is not currently open for new grant submissions. Because program status can change, this is best described as currently paused for grant applications rather than fully closed.

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