REAP grant update makes solar projects on farmland ineligible

The USDA is changing the rules for the Rural Energy for America Program (REAP), which gives grants to rural farmers and small business owners for renewable energy projects. The update takes effect October 16. Ground-mounted solar built on farmland will no longer qualify for REAP grants, though rooftop solar is still said to be eligible.

The application process is also changing. Instead of applying before building a project, applicants will now need to build it first, then submit 12 months of data from before installation and 12 months of production data afterward. Grants will be awarded based on actual, documented performance rather than projected savings. Multi-site projects won't qualify, and systems with parts from certain foreign manufacturers are also excluded. Grants can still range from $1,500 to $500,000, but a single grant still covers only 25% of a project's total cost, whether it's a new system or a retrofit.

If you live on or own rural farmland and were considering a ground-mounted solar array, this program will no longer help pay for it once the rule takes effect. Rooftop solar on a rural property may still be an option under REAP, but you'd need to complete the project and track a full year of energy data before and after installation to apply. There is a public comment period on this change, though the USDA has noted it can finalize the update without waiting on public input.