Grants and local funds are available to rural small businesses and agricultural producers for the purchase and installation of renewable energy systems and energy efficiency improvements to reduce their energy costs and consumption.
Missouri Rural Development State Director Janie Dunning recently announced the availability of the assistance through the Rural Energy for America Program (REAP).
“REAP is a community and economic development program. Any time a program can reduce costs for producers and businesses, the result is improved community stability and vitality,” Dunning said. “Through REAP, projects are funded which reduce operating costs for businesses, farmers and ranchers. These projects not only assist community and economic development, but the energy savings and energy advancements extend the life of existing energy resources and contribute to preserving a healthy ecosystem.”
Loans and grants are available to purchase and install renewable energy systems or make energy efficiency improvements to a farm or business. Residential projects are not eligible for the REAP program.
Renewable energy systems include solar, wind, geothermal, anaerobic digesters and renewable biomass. Energy efficiency improvements include grain drying and handling, lighting, refrigeration, facility improvements (such as adding insulation or replacing windows), heating and cooling upgrades, motor replacements and automated control upgrades.
Grants are available to pay for up to 25 percent of the eligible project costs. The maximum grant is $250,000 for energy efficiency improvements and $500,000 for renewable energy systems. The REAP program also provides for the guarantee of loans for up to 75 percent of the cost of a renewable energy or energy efficiency project.
Deadlines for renewable energy system and energy efficiency improvement grants are April 30 and June 30. Grants will be awarded on a competitive basis following the application deadlines, until available program funds are exhausted. Guaranteed loan applications will be reviewed on a monthly basis.
Missouri has nearly $2 million in grant funding available for renewable energy and energy efficiency projects. For information on REAP contact 573-876-9321 or email nathan.tutt@mo.usda.gov.