Renewable Energy Systems and Energy Efficiency Improvements Program
🏛 Rural Business-Cooperative Service
✓ Free, no account · Source: Grants.gov · Last verified Jul 15, 2026
Can you apply?
This grant is for rural businesses and cooperative organizations seeking to install renewable energy systems or improve energy efficiency on their properties. Eligible applicants include farmer-owned cooperatives, rural electric cooperatives, agricultural businesses, and other rural enterprises in USDA-designated rural areas. The program supports a variety of renewable energy technologies (solar, wind, geothermal, biomass) and energy efficiency improvements such as equipment upgrades, insulation, HVAC systems, and facility modifications. Activities must reduce energy costs or generation of renewable energy on the applicant's property. Geographic scope is limited to rural areas as defined by USDA, typically excluding areas within or adjacent to cities with populations over 50,000. The program aims to enhance rural economic development and sustainability through reduced operating costs.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
REAP Renewable Energy Systems and Energy Efficiency Improvement Program.
Refer to Application Package AND Application Instruction links to obtain all necessary forms for a complete application.
Contact State Energy Coordinators with questions: http://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf
Who can apply
Eligible applicants
Demographic focus
How to apply
Application links
Key dates & requirements
Required documents
- USDA Form SF-424 (Application for Federal Assistance)
- Project narrative describing renewable energy system or energy efficiency improvements, goals, and rural economic benefits
- Detailed project budget and cost estimates from contractors or equipment vendors
- Energy audit or engineering assessment documenting current consumption and projected savings
- Cooperative bylaws or articles of incorporation (if applicable)
- Evidence of organizational capacity (prior project experience, management resumes)
- Utility interconnection agreement or feasibility letter (for renewable generation projects)
- Letters of support from lenders, contractors, or technical service providers
- Environmental review documentation (NEPA compliance)
- Financial statements or credit documentation demonstrating ability to manage funds
Program contact
- 👤 Business and Cooperative Programs
- 📞 202-720-1914
Funding track record
Recent awards under CFDA 10.868 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
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$2,000,000
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$1,000,000
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$1,000,000
-
$1,000,000
-
$1,000,000
-
$1,000,000
-
$1,000,000
-
$1,000,000
-
$1,000,000
-
$1,000,000
Top States by Funding
- MI 11 awards $11.0M
- CA 7 awards $8.0M
- PA 6 awards $6.0M
- NC 6 awards $6.0M
- IA 6 awards $6.0M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 10.868). How funding has trended year over year.
| 2024 | $1,203,498,709 | |
| 2025 | $566,525,866 |
FAQ
What types of organizations can apply for this grant?
Farmer-owned and agricultural cooperatives, rural electric cooperatives, farm businesses, and other entities organized as agricultural cooperatives or located in USDA-designated rural areas are eligible. Some restrictions may apply based on cooperative structure and rural designation.
What renewable energy technologies are eligible?
The program typically supports solar, wind, geothermal, biomass, and anaerobic digesters for energy production. Energy efficiency projects may include HVAC upgrades, insulation, LED lighting, and equipment modernization that reduce energy consumption.
How much funding can I request?
Funding amounts vary by project type and business size. USDA RBCS typically caps awards to ensure broader distribution, but exact limits depend on program year. Contact USDA RBCS for current maximum award levels.
What is the typical application timeline?
This is a rolling deadline program, meaning applications are accepted continuously and reviewed as submitted. No specific cutoff date exists, but early application is advisable as funds are awarded on a first-come, first-served basis within annual appropriations.
How competitive is this program?
Competition varies with funding availability and annual appropriations. Applications demonstrating strong return on investment, rural economic benefit, and cooperative involvement tend to be more competitive. Projects with environmental or energy independence benefits receive favorable consideration.
💡 Tips for applicants
- Emphasize the financial and rural economic benefits of your project: show clear energy cost savings, payback period, and how the project strengthens the rural business or cooperative. Lenders and USDA reviewers prioritize demonstrable return on investment.
- Provide detailed energy audits or engineering assessments: include current energy consumption baselines, projected savings (in kWh or BTUs), and technical specifications for proposed systems. Third-party energy audit documentation significantly strengthens applications.
- Demonstrate cooperative commitment and member benefit: if applying as a cooperative, clearly articulate how the project benefits member-owners and the broader rural community. Show board approval and member engagement in the project planning.
- Include letters of support from lenders and contractors: pre-approval from a lending institution and written quotes or scope of work from experienced renewable/efficiency contractors demonstrate project feasibility and reduce reviewer risk assessment.
- Address interconnection and permitting requirements early: for renewable generation projects, document interconnection agreements with utilities, any required permits, and compliance with local regulations. Showing these hurdles are cleared strengthens your application's readiness.
⚠️ Common mistakes
Applications often fail because they lack concrete financial analysis or use inflated energy savings projections not supported by professional energy audits. Reviewers reject applications with vague or unrealistic timelines, missing quotes from equipment suppliers, or projects that don't clearly serve a rural business or cooperative purpose. Applicants frequently underestimate permitting and interconnection challenges for renewable generation, then face delays or scope changes mid-project.
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