For rural small companies, local government offices, and agricultural businesses (such as farms), the United States Department of Agriculture instituted a grant/loan program in 2003 that sought to assist these institutions in establishing clean, renewable energy sources (like solar systems and wind generators) that would ultimately lead to massive cost savings. With the USDA now accepting grants year-round (with yearly deadlines on April 30^th and October 31^st), Smucker’s stands ready to help you save thousands on your eligible solar or wind installation by handling the applications for the grant start to finish. If you qualify for a USDA grant, you may be in a position to save over 50% of your base system cost with the Federal tax credit and other local incentives taken into consideration.

The grant program (called the Rural Energy for America Program, or REAP) is for up to 25% of the total solar or wind system cost, with a cap of $500,000. Eligibility is limited to small businesses (as defined by federal standards), farms, land-grant universities and colleges, government offices, and electric cooperatives and public power companies located in designated ‘rural’ bounding areas by the USDA (agricultural producers are not limited to the rural bounding areas). There are a few guidelines to keep in mind when calculating grant eligibility:

• The USDA REAP is a “competition” grant, meaning that grants are non-guaranteed and are organized according to the requested amount (below $20,000 and above $20,000, also referred to as “Unrestricted”). Applicants within their respective categories are essentially competing against each other for grant money. Grants are paid out according to technical merit, energy efficiency, project readiness, and more. There are specific annual application deadlines for the grant—for 2016 and presumably, beyond, the $20,000 or less deadline is October 31^st, and the Unrestricted is April 30^th (similar to Tax Day, these dates automatically adjust to the closest following business day). The USDA conducts an on-site inspection of all awarded systems, and following approval, they send their grant payment via the SAMs systems as soon as “[the applicant] fully utilizes the funds from [their] matching share” (per the USDA website). Projects must start construction within 24 months of receiving the grant.
• Site usage must be considered at least 51% commercial (or otherwise eligible) power to apply for the grant. For properties that are both residential and commercial in nature, the grant can only be calculated based on the percentage of electricity used commercially. In other words, if a farm and a home are on the same meter, and the farm uses 60% of the electricity fed to that meter, the USDA grant amount will be calculated using a number that is 60% of the system cost—not the total system cost. If there are separate commercial and residential meters, only the commercial meter is eligible for the grant.
• There are three grant application tiers: projects costing under $80,000, projects costing between $80,000 and $200,000, and projects costing over $200,000. Each tier has its own application form that needs to be submitted, but Smucker’s Energy works closely with you to correctly fill out and submit each form according to your system specifications.

Over $60 million in grants and loan guarantees was awarded in 2015 after the USDA expanded their program and budget even further to encourage submission and streamline the application process. The REAP Program continues to serve as one of the premier incentives for qualifying agricultural entities looking to transfer to affordable, renewable energy.