On January 20, 2012, the FY 2012 Rural Energy for America Program (REAP) Solicitation was issued. The REAP program provides grants to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements. Deadlines are set for March and June of 2012.

Application deadlines:

• Renewable Energy/Energy Efficiency Grant Applications and Combination Loan/Grant Applications:March 30, 2012
• Guaranteed Loan Only Applications: June 29, 2012
• RE Feasibility Study Applications: March 30, 2012

Information from the USDA site on the program:

How does the B&I Guaranteed Loan Program compare to the Rural Energy for America Program Guaranteed Loan and Grant?
To assist you in determining which program best fit your needs this comparison chart identifies the programs common and distinct requirements in an easy to read format

How much are the grants?
The grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. Grant requests as low as $2,500 for renewable energy systems and $1,500 for energy efficiency improvements will be considered. At least 20% of the grant funds awarded must be for grants of $20,000 or less.

Who is eligible?
The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible. Small businesses that are located in a rural area can also apply. Rural electric cooperatives may also be eligible to apply.

What types of projects are eligible?
Most rural projects that reduce energy use and result in savings for the agricultural producer or small business are eligible as energy efficiency projects. These include projects such as retrofitting lighting or insulation, or purchasing or replacing equipment with more efficiency units. Eligible renewable energy projects include projects that produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The projects can produce any form of energy including, heat, electricity, or fuel.

How to Apply
To apply for funding for the REAP Grant Program please contact your Rural Development State Office.