REAP Grant Application Services

If you are located anywhere in Kentucky but Lexington, Louisville, Elizabethtown, or Ashland, you are in an eligible location for the REAP Grant.
What does this program do?

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.

How may the funds be used?

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

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

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

  1. High efficiency heating, ventilation and air conditioning systems (HVAC).
  2. Insulation.
  3. Lighting.
  4. Cooling or refrigeration units.
  5. Doors and windows.
  6. Electric, solar or gravity pumps for sprinkler pivots.
  7. Switching from a diesel to electric irrigation motor.
  8. 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.

What funding is available?
  1. Loan guarantees on loans up to 75 percent of total eligible project costs.
  2. Grants for up to 50 percent of total eligible project costs.
  3. Combined grant and loan guarantee funding up to 75% of total eligible project costs.
What is the maximum amount of a loan guarantee?

The loan guarantee percentage is published annually in a Federal Register notice. REAP loans approved in Fiscal Year 2024 will receive an 80% guarantee.

What are the grant terms?

Renewable Energy System Grants:

  1. $2,500 minimum.
  2. $1 million maximum.

Energy Efficiency Grants:

  1. $1,500 minimum.
  2. $500,000 maximum.

Consult with our Specialists Today!

Arthur Jaramillo

Office Manager

  • (859) 428-7292