USDA Grant For Solar Panels

WHAT IS REAP?

The Rural Energy for America Program, also known as the REAP Grant, is a federal grant from the USDA that can cover up to 25% of the cost of a new solar PV system. Only agricultural producers and rural small businesses are eligible to receive funding via REAP. The objective of this program is to promote energy independence throughout the United States by making clean energy more attainable to the private sector.

While solar already decreases the amount spent on energy utilities, with the combination of this grant and the recently extended tax credit, there has never been a better time to invest in solar.

WONDERING HOW MUCH YOU CAN SAVE WITH THE USDA REAP GRANT? 

While you can save a whopping 25% on installation costs with this federal grant, we believe the more important question to ask is, “how much can I save by going solar?”. Before even considering the endless savings you will see once your system is up and running, you can reduce installation costs by over 50%!

This comes from the combination of the REAP Grant’s funding for solar, and the solar investment tax credit (ITC). While only agricultural or commercial solar projects are eligible for the REAP Grant, the ITC applies to all solar installations - including residential projects. 

It should be made clear that this isn’t some sort of scam or gimmick, and that there is a lot of behind-the-scenes work that goes on in order for you to reap the benefits of this program. Luckily for you, our grant-writer will take care of all the nitty-gritty details.

That being said, we understand how this can sound almost too good to be true... but we promise: it's just that good. Not only could the REAP grant save you up to 25%, but you will also benefit from the ITC (which covers an additional 26%), MACRS accelerated depreciation AND the fact that there’s no sales tax on solar installations in Florida.

With all of those incentives combined, the payback period for commercial projects can be as short as four years! Given that the ITC won’t be around forever, there has really never been a better time to invest in alternative energy like solar. 

ARE YOU RURAL?

Check the USDA-REAP Rural Eligibility Map to make sure your business address is located in an eligible rural area.

LIMITED TIME OFFER

Because the deadline to apply for this grant is in early March, we would love to get in touch with you as soon as possible to show you why the cost to go solar has never been lower, and the payback period has never been shorter. Fill out the form below and one of our solar experts will get in touch to help you take advantage of this unique opportunity!

GRANTS FOR SOLAR ENERGY INSTALLATION FAQ

What is the REAP Grant?

If you are a rural small business or agricultural producer, you may qualify for the Rural Energy for America Program (REAP) federal grant, and receive funding for your solar project.

This grant was created to help rural small businesses and farms move towards renewable energy practices, and it can cover up to 25% of the cost of a solar PV system installation.

So whether you’re looking to start a large commercial solar project, or run your small agricultural operation off renewable energy, the REAP Grant can help you save while doing so!

How can I apply for a REAP Grant?

Wondering how you can get a grant for solar panels? Well, if you intend to apply for a REAP Grant on your own, your first step would be to submit an application to the US Department of Agriculture.

Although it is possible to do this on your own, it's typically best to employ the use of a grant writer (or somebody well versed in writing grants for the USDA). PPM Solar has aided many clients in getting approved for the REAP Grant in the past, and we are more than happy to help you do the same.

At PPM, we want to make it as easy as possible not only for you to go solar but for you to maximize your savings while doing so. Therefore, all you have to do is contact us to let us know that you are interested, and we will put you in touch with our grant writer.

How does the REAP grant work?

Typically there are two cycles: one in the fall and one in the spring. While the fall cycle (applications due November 1st, 2021) is limited to $20,000, the one in the spring has no cap and can cover up to 25% of the cost of a new system (applications due March 31st, 2022). Because of the limits that come with the first round of grants, for larger projects, the spring cycle is the one you want to focus on in order to maximize your savings.

Once the applications have been submitted, they go through a review process by the USDA, and within a few months, you will hear whether or not you are approved.

You can apply just about any time throughout the year for the upcoming cycle, as long as you have not installed your project yet. 

Is the REAP Grant paid in cash?

If your application gets approved, the USDA will give you confirmation that your project is awaiting funding. If you haven’t done so already, this would be the time for you to start building your project with a contractor.

Once the project is completed, you will also need to provide the requested documentation and proof of system installation and operation to the USDA. Once they review and inspect the system, they issue a check for the total grant amount, in CASH! We cannot guarantee rebates like this, as it is outside the hands of any contractor, and it is completely up to the USDA.

Because of this, it is very important that you understand the financials of your project before even applying for the grant, and treat the grant as a bonus. 

Are REAP Grants taxable? 

In short: it depends. Whether the cash you receive from the REAP Grant is taxable or not depends on how you are taking the income. To be completely honest, this is a question for a qualified tax consultant.

Every business is different and will be required to file differently. We recommend that you consult with your CPA or a qualified tax professional because the majority of contractors are neither qualified nor authorized to provide this information. It is also important to note that this is cashback, not a tax credit.

You are actually given cash by the USDA - pretty cool, right? Upon the project being finalized, the USDA will write you a check for the agreed-upon amount of the grant. 

Contact us today and we will get in touch as soon as possible