Energy costs for the agriculture industry keep rising and more companies are turning to solar energy to reduce those expenses. For companies that choose solar, the payback can be in as few as 3 years. Some companies choose to pay cash or use loans through their local bank or Farm Credit to finance their project. Both cash and loan payment options allow companies to take advantage of the 30% federal tax credit as well as both state and federal accelerated depreciation that can represent another 20%. But for some companies, there is an additional 25% grant that they may be eligible for called the REAP Grant (Rural Energy for America Program).
Here are some highlights of the REAP Grant:
- Available to ag producers and rural small businesses
- The grants are for projects greater than $200K and can cover 25% but cap at $500,000 The grants ALWAYS run out in some states like California
- Grants have a rotating application. The next application is due April 2017 Last year $70M in grants were awarded
- Grants are only available for cash or loan (no leases)
- In addition to the grant, there is an 80% federal loan guarantee for up to $5M
REC Solar has worked with several companies whose solar projects have qualified for these grants. As the 2017 grant deadline draws near, we would love to review your situation and see if a REAP grant is something your solar project can take advantage of. We work with third party grant writers that can make your application as competitive as possible.
REAP grants are competitive and are never guaranteed. However, the 75% potential discount can make REAP grants well worth the attempt! Want to see how much your company can save with solar and if you qualify for a REAP Grant? Give our solar experts a call at 888-554-9398 and we can look at your site and evaluate your savings options.