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Allocations Published April 30, 2026

USDA REAP Allocates Additional $145 Million for Rural Solar & Energy Upgrades

Reviewed by Ashwani Kumar
Research review: Ashwani KumarVerified
FSI Digital Funding Research • Reviewed April 30, 2026

Related Program Guide

USDA Rural Energy for America Program (REAP)

View official parameters, limits (Up to $1 Million (covers up to 50% of project costs)), and application details.

View Program Guide

The USDA is allocating an additional $145 million in funding for the Rural Energy for America Program (REAP). These funds, distributed through regional offices, will help agricultural producers and rural small businesses install solar panels, wind turbines, biomass digestors, and high-efficiency HVAC equipment.

50% Cost-Shared Matching Rules

Under the Inflation Reduction Act provisions, the REAP grant match remains at up to 50% of the total project cost. For projects requesting over $20,000, a professional energy audit is required to prove historical energy usage savings. Guaranteed loans can also be stacked to cover the remaining cash requirements.

Who Qualifies?

To qualify for the program, the business must either be a farm deriving 50% or more of its gross income from agriculture, or a rural small business located in a designated zip code with a population under 50,000. Virtual operations or entities with metropolitan HQs are excluded from the scheme.

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