Commercial and Residential Alternative Energy Systems

Rural Energy For America Program Grants (REAP Grants)

The REAP Grant Program will provide grants for energy audits and renewable energy development assistance. It also provides funds to agricultural producers and rural small businesses (the Big Island qualifies as a rural area) to purchase and install renewable energy systems and make energy efficiency improvements.

The grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. Grant requests as low as $2,500 for renewable energy systems and $1,500 for energy efficiency improvements will be considered. At least 20% of the grant funds awarded must be for grants of $20,000 or less.

The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible. Small businesses that are located in a rural area can also apply.

Most rural projects that reduce energy use and result in savings for the agricultural producer or small business are eligible as energy efficiency projects. These include projects such as retrofitting lighting or insulation, or purchasing or replacing equipment with more efficiency units. Eligible renewable energy projects include projects that produce energy from wind, solar, biomass, geothermal, and hydrogen-based sources. The projects can produce any form of energy including, heat, electricity, or fuel. Energy audits and renewable energy development assistance will allow agriculture producers and rural small businesses to become more energy efficient and use renewable technologies.

For all projects, the system must be located in a rural area (the Big Island is a rural area), must be technically feasible, and must be owned by the applicant.

To apply for funding for the Section 9006 Grant Program, please contact Tim O'Connell, USDA Rural Development, in Hilo at 808-933-8313 or tim.oconnell@hi.usda.gov.

The USDA grant site is here: http://www.rurdev.usda.gov/rbs/busp/9006grant.htm