Federal Funding for Solar Power
Rural small businesses and agricultural producers can drastically reduce the cost of solar power projects. USDA Rural Development’s Rural Energy for America Program or REAP provides guaranteed loan financing and grant funding for these businesses. To qualify as a “rural” small business, the business must be located in an area with a population of 50,000 or less. Most of Western Wisconsin and Eastern Minnesota fits that description.
For funding solar power, competitive grants range from $25,000 – $1 million for up to 50% of the cost. Guaranteed loan requests are limited to 75% of the project cost.
This program can be added to other renewable energy programs such as Focus on Energy, PACE financing and your local electrical utility. REAP can be leveraged with federal tax incentives including the Investment Tax Credit for 30% of a solar panel system, and the modified accelerated cost recovery system (MACRS).
The program funded by the Inflation Reduction Act has 4 remaining application windows: December 31, 2023; March 31, 2024; June 30 2024 and September 30, 2024. This program may not be renewed for 2025 and applications can take 2-6 weeks to process. Consequently, the time to act is now! Application information can be found on USDA Rural Development’s website.
Contact us at Energy Concepts straightaway to see how quickly you’ll see a return on investment for your solar panels.
