Funding available for rural farms and businesses to work on clean energy, efficiency

USDA Rural Development State Director Colleen Landkamer announced this month that USDA is awarding five grants to help Minnesota rural small businesses and agricultural producers reduce energy usage and costs in their operations. Funding comes from the Rural Energy for American Program (REAP) and will go towards energy efficiency improvements and/or renewable energy systems. She also wants to remind Minnesotans that another deadline for REAP is coming up on May 2, 2016. Read on to learn more!

“This funding will help implement energy-saving measures that help rural small business owners and agricultural producers remain competitive in an increasing global marketplace by allowing them to save on operational costs and contribute to their bottom line,” Landkamer said. “These actions not only help them save on annual energy costs, but also reduce their environmental footprint.”

Highlights of the five funded projects:

• Gaillen Guadalupe has been selected to receive a $20,000 grant to finance installation of a new refrigeration and HVAC system for her Mexican grocery store in Worthington, MN. Open-faced refrigeration stations and freezer chests will be replaced with energy efficient refrigeration options to help lower costs and energy usage. The project is expected to save Guadalupe 40 percent, nearly $10,000, of her annual electrical costs – equating to over 135,000 kWh (the amount of annual energy produced by 12 households) in energy savings.

 

• In Cannon Falls, MN., the Molitor Brothers Farm is being awarded a $20,000 grant to install a 40 kW solar array. It is expected to generate over 70,000 kWh of yearly energy and will offset annual electrical costs by $9,100, or approximately 90 percent of the farm’s annual energy usage.

• James Jorgenson is being awarded a $17,320 grant to install a 30 kW solar array in Westbrook, MN.

• Art Thicke will receive a $20,000 grant to install a 30 kW solar array near La Crescent, MN.

• Chad Crowley was awarded a $10,438 grant to install a 16 kW solar array, also near La Crescent, MN.

 
Funding for these projects is awarded through USDA Rural Development’s Renewable Energy for America Program (REAP). USDA reminds eligible applicants that set-aside funding is available for grant requests less than $20,000 and may offer priority scoring for projects located in underserved areas and/or benefiting underserved populations.

Since 2009, REAP has helped finance 1,014 renewable energy and energy efficiency projects that have reduced energy costs for rural businesses statewide. During this period, USDA has provided almost $35 million in grants and $5 million in loan guarantees to agricultural producers and rural small business owners in rural communities throughout Minnesota.

In addition to the grants announced this month, USDA is reminding eligible recipients that the department is accepting applications for future REAP funding. The next application deadline is May 2, 2016. See more information below for details about how to apply and for sample applications you can download.
 

The Rural Energy for America Program (REAP) from USDA Rural Development is a great opportunity for Minnesota farmers and rural businesses to save energy with efficiency work and add renewable energy systems. Grants can cover up to 25% of eligible project costs, and loans can cover up to 75% of eligible project costs.   The next deadline for applications is in early 2016. There is also a shorter application that can be completed without the help of a grant writer for smaller projects.

• For Grants: Applications for renewable energy or energy efficiency grants are due May 2, 2016. Projects requesting grants of up to $20,000 ($80,000 or less total project cost) can fill out a shorter application.

• For Loans: The Guaranteed Loan-only program will now accept and process applications on a continual basis throughout the year so applications can be submitted at any time.

Are you eligible? REAP is for all farmers, and for rural small businesses that are located in communities with populations less than 50,000. While businesses located in Rochester, Duluth, Mankato, St. Cloud, and the core of the Twin Cities wouldn’t be eligible, nearly the entire rest of the state is eligible (including many Metro suburbs and exurbs). Click here to see a map of eligibility. Then, click on the link above the REAP program (among others), and then click Accept on the Property Eligibility Disclaimer. You’ll be routed to a map where you can enter an exact address to see clearly whether it sits in an ineligible area for REAP.

Want to learn more? Read a recent interview with USDA staff or visit the MN REAP webpage where you can read the entire rule and see a more detailed description of the scoring changes. See below to access sample REAP applications with helpful notes.

Need an energy audit? As part of the REAP application process you’ll need to get an energy audit. If you haven’t gotten one before, watch a video to learn more. Talk to your electric utility about whether or not they provide audits.
 

CERTs has created two REAP sample applications using the short form (projects $80k or less).

 
Notes in the sample applications include helpful instructions and a breakdown of how the USDA will score prospective projects. The two samples are for a hypothetical agricultural producer interested in (1) a Renewable Energy System or (2) an Energy Efficiency Improvement Project.

1. Renewable Energy System Sample Application	2. Energy Efficiency Improvement Project Sample Application

Watch a video to learn more about REAP:

Find out how you can power your farm or business with the Renewable Energy for Greater Minnesota program