USDA REAP Reduces the Cost of Solar for Agriculture and Rural Business

The impact of climate change continues to challenge rural and agricultural businesses, but the Rural Energy for America Program (REAP) offers a significant opportunity to embrace renewable energy while reducing costs. Thanks to the Inflation Reduction Act and other federal and state incentives, eligible businesses can save up to 100% of the project costs for installing solar energy systems.

Solar energy isn’t just about sustainability—it’s a smart business move that shields companies from rising utility rates, offers predictable energy costs, and provides significant tax benefits.

Why Solar for Agriculture and Rural Businesses?

Solar energy is now the most cost-effective energy source, empowering agricultural and rural businesses to:

Save thousands annually through reduced energy costs.
Minimize tax liability with the 30% Federal Investment Tax Credit (ITC) and equipment depreciation benefits.
Achieve energy independence by mitigating the impact of volatile utility rates.
Enhance their sustainability profile and meet rising ESG (Environmental, Social, and Governance), or corporate social responsibility demands, appealing to environmentally conscious customers.
Transition to solar with $0 upfront capital investment with exclusive commercial solar financing

Qualifying for USDA REAP Solar Funding

USDA REAP supports the following qualifying agricultural producers and small rural businesses.

Agricultural Producers:
Businesses deriving at least 50% of gross income from agricultural operations.

2. Rural Small Businesses:

Located in eligible areas (population ≤50,000) and meeting Small Business Administration size standards. Qualifying entities include private for-profit entities, cooperatives, electric utilities, and certain tribal business entities.

For New York State businesses meeting these requirements, REAP funding can be transformative, offering both grants and guaranteed loans to fund renewable energy projects.

How REAP Works

USDA REAP offers grants, guaranteed loans, and a combination of these as potential funding sources for qualifying agricultural and rural businesses. Here’s a look at each:

USDA REAP Grants:

Up to 50% of the total project cost
Up to $1,000,000

USDA REAP Guaranteed Loans:

Up to 75% of project costs (not exceeding $25 million).
Loan guarantees cover 80% of the loan amount

How to cover up to 100% of your solar costs

Combine REAP funding with other state and federal incentives to cover up to 100% of your solar project costs, including:

A 30% federal tax credit
Equipment depreciation benefits
State-level incentives like the NYSERDA grant

Together, these programs can reduce the total project cost to zero for qualifying businesses.

REAP Success Stories for Agriculture and Rural Businesses

These businesses showcase the power of solar energy and REAP funding to transform operations, cut costs, and increase sustainability.

Cherry Lawn Fruit Farms, located in Sodus, New York, benefited from a USDA REAP grant for their first solar installation and has been approved for REAP again to help fund an expansion.

Upstate Door, located in Warsaw, New York, has installed two ground-mounted solar installations to support its operations. Phase 1 was awarded USDA REAP funding.

Pourware Inked, located in Macedon, New York, leveraged a REAP Grant to reduce its net cost of going solar to zero and help fund its expansion to a larger facility.

Key Deadlines for REAP Applications: 2025 - 2027

GreenSpark Solar supports agricultural and rural businesses through the REAP application process. However, to meet your targeted project timeline, it’s imperative to start the process as early as possible.

Here are the current application windows for FY 2025–2027:

FY 2025: December 31, 2024, and March 31, 2025
FY 2026: September 30, 2025, December 31, 2025, and March 31, 2026
FY 2027: September 30, 2026, December 31, 2026, and March 31, 2027.

The program accepts applications from July 1 to March 31 each year, with no submissions accepted between April 1 and June 30.

Take the next Step

Explore how a REAP solar grant or loan can benefit your business. Whether you’re looking for energy savings, reduced tax liability, or a more sustainable future, GreenSpark Solar is here to help. Get in touch with us today to start the process.