About this programme
The Rural Energy for America Program (REAP) is a USDA Rural Development program that funds renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses. It runs as both a grant and a guaranteed-loan program, and the two can be combined on the same project.
REAP is authorized under Title IX of the Agriculture Improvement Act of 2018 (the Farm Bill) and implemented through 7 CFR Part 4280 and 7 CFR 5001. It is administered through USDA Rural Development's state offices, each with its own Rural Development Energy Coordinator who handles applications for that state.
The program covers two categories of project: renewable energy systems (biomass, geothermal, hydropower under 30 MW, hydrogen, wind, solar, and ocean/tidal generation) and energy efficiency improvements (HVAC, insulation, lighting, refrigeration, doors and windows, electric pumps, and motor conversions).
As of the current cycle, USDA Rural Development is not accepting new REAP grant applications. Guaranteed loan applications may still be submitted. Applicants should confirm current status directly with the program before preparing an application.
How it works
Grants can cover up to 50% of eligible project costs. For renewable energy systems the grant range is $2,500 minimum to $1 million maximum; for energy efficiency improvements it is $1,500 minimum to $500,000 maximum.
Loan guarantees can cover up to 75% of total eligible project costs, with a maximum term of 40 years. For FY2025 approvals the guarantee percentage was set at 80 percent. Guarantee fees are 1% of the guaranteed loan amount upfront, plus an annual renewal fee of 0.25% of the outstanding principal balance.
A combined grant-and-loan-guarantee request can together cover up to 75% of total eligible project costs.
Matching (cost-share) requirements differ by applicant type: for zero-emissions projects, projects in Energy Communities, or Tribal entities, the federal share can reach 50% of project cost; for other grant-only applicants the federal share is capped at 25%. Guaranteed-loan applicants must contribute at least 25% of project cost from non-federal sources.
Who can apply
Agricultural producers are eligible if at least 50% of their gross income comes from agricultural operations. Rural small businesses are eligible if located in an eligible rural area — generally areas with a population of 50,000 residents or fewer.
Cooperatives, Tribal corporations, and electric utilities (including generation and transmission cooperatives) that serve rural areas can also apply.
Applicants must be U.S. citizens or legally admitted permanent residents (for individuals), and must have no outstanding delinquent federal taxes, debt, judgment, or debarment.
How to apply
- Register in the federal System for Award Management (SAM.gov) and obtain a Unique Entity ID before applying — this is a prerequisite, not part of the application form itself.
- Contact your state's USDA Rural Development Energy Coordinator to confirm current application status and get state-specific guidance.
- Select the correct application form based on total project cost: Form 4280-3A for projects of $80,000 or less, Form 4280-3B for projects between $80,001 and $199,999, and Form 4280-3C for projects of $200,000 or more.
- Assemble and submit the application package with all required supporting documentation (see Documents) to the state Rural Development office.
Documents you’ll typically need
- SF-424, Application for Federal Assistance
- Form 424-C, Budget Information
- Form 424-D, Assurances
- Environmental information/checklist
- Vendor certification for the Renewable Energy System (RES) or Energy Efficiency Improvement (EEI), as applicable
- Energy audit or energy assessment (required for energy efficiency improvement projects)
- The appropriate project application form: 4280-3A, 4280-3B, or 4280-3C, based on total project cost
Frequently asked
Is REAP a grant or a loan program?
Both. REAP offers grants (up to 50% of eligible project costs) and guaranteed loans (up to 75% of eligible project costs), and an applicant can combine a grant with a loan guarantee on the same project, together capped at 75% of total project cost.
Is REAP currently accepting applications?
USDA Rural Development's REAP page states the agency is not accepting REAP grant applications at this time, while guaranteed loan applications may still be submitted. Confirm current status with your state Rural Development Energy Coordinator before preparing an application.
Who counts as a rural small business for REAP?
A small business (by SBA size standards) located in an eligible rural area — generally an area with a population of 50,000 residents or fewer. Agricultural producers qualify separately if at least half their gross income comes from agricultural operations, regardless of location.
What is the minimum and maximum grant size?
For renewable energy systems, grants range from $2,500 to $1 million. For energy efficiency improvements, grants range from $1,500 to $500,000. Grants cover up to 50% of eligible project costs.
Do I need to do anything before I can apply?
Yes — register in the federal System for Award Management (SAM.gov) and obtain a Unique Entity ID. This registration is a prerequisite for any federal grant or loan guarantee application and should be started well before your submission deadline.
Does REAP require an energy audit?
For energy efficiency improvement (EEI) projects, an energy audit or energy assessment is a required part of the application package. Renewable energy system (RES) projects instead require a vendor certification for the system being installed.
Do I have to put in matching funds?
Yes. Guaranteed-loan applicants must contribute at least 25% of project cost from non-federal sources. Grant-only applicants generally cover at least 25% of cost themselves, except for zero-emissions projects, projects in designated Energy Communities, or Tribal-entity projects, where the federal share can rise to 50%.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.