Solar Panel Grants for Small Businesses
The USDA is offering solar panel grants and loans through the REAP program for those interested in going solar with their farm or small business. With REAP, making the switch to solar is easier and costs your business less. Here’s how:
What is the USDA REAP Grant Program?
REAP is short for Rural Energy for America Program, which is a USDA government incentive designed for small, rural businesses, and farmers. This includes large or small farming or ranching operations, and small businesses in rural areas.
REAP provides solar panel grant funding for up to 25% for your new solar installation. The loan guarantees can cover up to 75% of the solar project cost.
Funding from the REAP Solar Grants and Loans
These grants and loans are awarded on a competitive basis.
- Grants and loans to fund installation of Solar Renewable Energy systems: 2,500 minimum to $500,000 maximum
- Grants and loans to fund Energy Efficiency improvements: Rebate amount $1,500 minimum to $250,000 maximum
The cost of installing solar is at an all-time low and prices are falling each year. If you combine a REAP grant with the 26% tax credit and other state incentives, you can significantly decrease the costs of going solar!
Now is the time to lock in low energy costs and start saving immediately with solar and energy efficiency upgrades.
Did you know? According to the Energy.gov, a total of $63 million in grants and loans were awarded through the USDA REAP program in 2015.
How Do I Qualify for the Rural Energy For America’s Solar Panel Grant?
Does my business qualify for the solar grant?
If your business falls into one of these categories, you can apply to REAP to get a grant or loan for a renewable energy system. Here are a few requirements.
- Your business must be in a rural location.
- A rural location is anywhere that has less than 50,000 people.
- If you are in a rural location, it doesn’t matter what your business is. It could be a hardware store, a clothing boutique, or even a racing track.
- Find out if your business is in an eligible address.
- You must be the owner of the project.
- Only the owner of the business can apply for a solar panel grant- not for others.
- You don’t need to own the location where your business is located (either the building, or the property), but you do have to have control of that site.
- Only your business can qualify for the USDA REAP.
- Residences are not eligible for the energy grant, even if it happens to be on the same property as your business (an adjacent house, for example).
- You will have to demonstrate that all the energy benefit resulting from the project will be used for your business. One way is to have a professional energy audit done.
- Your business has to be solvent.
- You’ll have to show that your business produces enough revenue to cover any operational or maintenance expenses for the project.
- You also have to show that you can cover any applicable debt for the duration of the project. Solar financing can help with this.
- If your business is actually farming, you get bonus points! Hurray!
- Your business must produce 50% of its gross annual income directly from agricultural production for it to qualify as a farm. If you do, then you can qualify for the grant regardless of where your farm is located.
If you aren’t certain whether or not your business is legally defined as a “small” business, you can check your NAICS code at the NAICS website. You can also check your SBA defined business size at their website.Contact Us to See if You Qualify
What Can I Use the REAP Grant For?
Renewable energy is the future. Solar is a big part of the renewable energy efforts to promote clean energy and lock in savings from high energy costs. Renewable energy systems such as wind, geothermal, hydrogen and biomass energy can also be funded with the REAP grant.
Energy Efficiency Improvements are covered if you want to make your small business more energy efficient and save on electricity costs. The REAP grant covers:
- High efficiency heating, ventilation, and air conditioning systems
- Energy efficient door and windows
- LED Lighting
- Cooling or refrigeration units
- Doors and windows
- Electric, solar, or gravity pumps for sprinkler pivots
- Switching from diesel to electric irrigation motor
- Replacement of any energy-inefficient equipment.
Sunpro Solar Makes It Easy for your Small Business to Apply for the REAP Solar grant.
It may seem complicated applying for a grant to the government, but don’t worry. We have helped many business take advantage of these commercial solar grants. Sunpro Solar will walk you through the application process. We also help you secure your solar panel grants and loans with ease. Many small commercial businesses take advantage of these additional solar grants from snowball stands, poultry farms, to inside sales call centers.
You make the switch to go solar, we make it easy and affordable. You can apply for a REAP grant or loan at any time during the year at your local office or state office. If you’d like to read more about the USDA REAP program, you can check out the USDA’s webpage for full details.Find Out More