Rural Development
Rural Energy for America (REAP)

REAP grants and loan guarantees help rural businesses and agricultural producers, to purchase and install renewable energy systems or make energy efficiency improvements that lower costs and save energy.


Who is eligible to apply?
Rural businesses, farmers, ranchers and other agricultural producers. Businesses must meet the Small Business Administration definition of a small business. Agricultural producers must derive at least 51 percent of their gross annual income from agricultural operations.

What may the funds be used for?
Eligible renewable energy projects include the purchase and installation of renewable energy systems such as wind, solar, geothermal, biomass, anaerobic digesters, hydroelectric, and ocean or hydrogen systems.

Eligible energy efficiency projects are those that reduce energy consumption and result in cost savings. Examples include, but are not limited to, things like retrofitting lighting, adding insulation, replacing equipment with more efficient units or replacing heating/cooling systems.

All projects must be located in a rural area, must be technically feasible, and must be owned by the applicant.

When are applications due in Virginia?
We anticipate Fiscal Year 2011 funding will be announced in late March with the first application deadline in early June.

NOTE: Submitting applications early increases the opportunity for funding during the federal fiscal year ending Sept. 30, 2011.

How do I get started?
Energy Efficiency

  • Projects with total costs of less than $200,000, click here.
  • Projects with total costs of more than $200,000, click here.

Renewable Energy

  • Projects with total costs of less than $200,000, click Here.
  • Projects with total costs of more than $200,000, click Here.

How much money is available for each applicant?
Grants may be awarded for up to 25 percent of eligible project costs.

Grants for renewable energy systems may range anywhere from $2,500 to $500,000.

Grants for energy efficiency improvements may range anywhere from $1,500 to $250,000.

There is a special set aside for grant requests of $20,000 or less.

Where do I get help completing the application?
For assistance completing the application, contact the USDA Rural Development office that serves the county where the business or agricultural producer is located.

A map of USDA Energy Program Contacts in Virginia is available online.

State Natural Resource Management Guide

NOTE: These funds are not part of the American Recovery and Reinvestment Act. Background on the REAP program is available HERE.