The Inflation Reduction Act (IRA) of 2022 funds Investment Tax Credits (ITC). This tax benefit provides an incentive for businesses to pursue renewable energy sources. The IRA has recently expanded its funding to farmers and small businesses.
Through the IRA, The Department of Agriculture (USDA) has received $1 billion in grant funds. Named the Rural Energy for America Program (REAP), these funds get applied to energy efficiency projects, including solar power. The program also provides guaranteed loan financing for renewable energy systems and efficiency improvements.
Who qualifies for REAP grants?
Agricultural producers located in rural or nonrural areas. Note: At least 50% of gross income must be from agricultural operations.
Small businesses located in rural areas with a population of 50,000 or less. You can check eligibility here.
Additional Rules:
Awarded grants cover up to 50% of the cost of a solar panel installation, and do not exceed $1 million.
Grantees must not be delinquent on federal taxes, debt, judgment or debarment.
Individual borrowers must be citizens of the United States.
Funds for grants are managed on the state level. Applications can be submitted on a rolling basis, but funds get awarded quarterly.
Once a grant has been awarded, the project needs to be completed within two years.
REAP quarterly deadlines are 12/31/2023, 3/31/2024, 6/30/2024, and 9/30/2024.
The first step of any solar project is to calculate the lifetime savings. With one utility bill, a solar engineer can build out the basics of a solar system. If you want to save money on your electricity bills, it's the ideal time to look into solar energy and take advantage of this program.
With strong State and Federal incentives available, solar energy has never been more affordable. A solar expert can help you navigate all available incentives so that you can REAP the rewards of solar energy. It's a money saving opportunity for agriculture producers and small businesses.
Smart Roofs Energy is a turnkey solar energy company. Despite volatile energy rate spikes, solar power gives companies control over their electric bills. Offerings include rooftop solar PV, carports, ground mounts PV, solar farms, and more. Reach out to find out how much you can save