USDA ends upfront REAP grants for farm energy projects, effective Oct. 16
The rules, effective Oct. 16, require applicants to finance and complete a project and document a full year of energy savings before applying.
At a glance
USDA is ending upfront REAP grants for farm energy projects and, starting Oct. 16, will require applicants to finance and complete a project and document a full year of energy savings before they can apply.
Under the new sequence, a federal award becomes reachable only after an applicant has paid for construction, finished the work and logged the required year of measured performance.
Because the savings test requires a full year of operating history, an application cannot be filed until a system has run that long, and the applicant carries the whole cost first.
USDA is ending upfront REAP grants for farm energy projects and, starting Oct. 16, will require applicants to finance and complete a project and document a full year of energy savings before they can apply.
Under the new sequence, a federal award becomes reachable only after an applicant has paid for construction, finished the work and logged the required year of measured performance. REAP is the department's farm energy program, and the shift moves the grant from upfront support toward a later reimbursement.
Because the savings test requires a full year of operating history, an application cannot be filed until a system has run that long, and the applicant carries the whole cost first. That moves early-stage construction risk from the federal award to the applicant.
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