USDA Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants

The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

Eligible Recipients:

  • Agricultural producers
    • An entity directly engaged in production of agricultural products where at least 50 percent of their gross income coming from agricultural operations.
  • Small businesses
    • Must be located in eligible rural areas and one of the following:
      • Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
      • A Cooperative [including those qualified under Section 501(c)(12) of IRS Code]
      • An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control)
      • A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.
    • Must meet the Small Business Administration size standards in accordance with 13 CFR 121.

NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment or debarment.

Eligible Projects:

Funds may be used for the purchase and installation of renewable energy systems, such as:

  • Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
  • Geothermal for electric generation or direct use.
  • Hydropower below 30 megawatts.
  • Hydrogen.
  • Small and large wind generation.
  • Small and large solar generation.
  • Ocean (tidal, current, thermal) generation.

Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:

  • High efficiency heating, ventilation and air conditioning systems (HVAC).
  • Insulation.
  • Lighting.
  • Cooling or refrigeration units.
  • Doors and windows.
  • Electric, solar or gravity pumps for sprinkler pivots.
  • Switching from a diesel to electric irrigation motor.
  • Replacement of energy-inefficient equipment.

Energy Efficiency Improvement applications must contain an Energy Audit, or Energy Assessment (depending on Total Project Costs) that complies with Appendix A to RD Instructions 4280-B

Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.

Funding Source:
United States Department of Agriculture (USDA) Rural Development

Funding Amount:

  • Loan guarantees on loans up to 75 percent of total eligible project costs.
  • Grants for up to 50 percent of total eligible project costs.
  • Combined grant and loan guarantee funding up to 75% of total eligible project costs.

Renewable Energy System Grants:

$2,500 minimum.
$1 million maximum.

Energy Efficiency Grants:

$1,500 minimum.
$500,000 maximum.

Deadlines:

Open for Fiscal Years 2023 & 2024 Application Windows: June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024

Contact:
Gary Pereira, USDA Rural Development 9025 River Road
Marcy, NY 13403
Tel: (315) 570-2233 gary.pereira@usda.gov http://www.rd.usda.gov/ny

More Information:
http://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency