Did you hear? USDA Rural Energy for America Program (REAP) is coming back…with some changes. The biggest change is that the program will now award projects that have been built and demonstrate energy savings rather than proposed unbuilt projects. Let’s take a look at the changes and where to go from here.
Under the new USDA-REAP grant program structure:
- Projects must already be fully built and operational for a full year before the applicant can apply.
- Applicants then apply, submitting actual energy production or savings data for the prior 12 months, alongside 12 months of pre-installation data.
- USDA evaluates applications for completeness, eligibility, risk, and merit and will award grants subject to the availability of funds and criteria provided in an annual notice.
- This new approach changes the program to a post completion, performance validated model rather than apply, get approved, install, and then verify the savings.
- All renewable energy and energy efficiency awards will now be based on actual documented output, energy savings, costs, and system performance.
- Bottlenecks leading to application processing backlogs such as the technical merit review clearance process have been removed.
- Multilocation projects and specific application of certain technologies are now ineligible, and the program proposes to eliminate state level competitions in favor of a single national scoring and selection process. Details on which technologies will and will not be allowed will be detailed in the forthcoming FAQs.
- The result is a streamlined but significantly different process intended to reduce risk to the program, simplify administration, and prioritize projects delivering verifiable results.
- The result of these changes, combined with the release of a planned online application portal, will significantly decrease burden for applicants by shortening application length and review times across the program.
- New scoring system which includes a low score limiter.
- Additional FAQs are coming soon, keep your eyes on the REAP grant website or follow me on LinkedIn and I will keep you posted as updates come out.
The bottom line, REAP will now be an “install, operate for 12 months, document results, and then compete for reimbursement” program rather than the past program of “apply, receive award, then install” approach.
So, where do we go to from here?
- If you have already installed your project and it has been in for a year, you are set to apply in the upcoming round of funding.
- If it has not been installed for a year, make sure you track your energy use or energy production and start planning to apply for upcoming funding rounds.
- Didn’t install yet? Let’s chat and see which federal program is the best fit for you.
- Wondering if your project will score high enough to get a REAP grant? Give GDS a call, we can pre-score your project. Phone calls are always free and GDS can help you determine your best path forward.
- Only installing if you can get some federal funding assistance? Check into the NRCS-EQIP program, the program operates more closely to the old REAP program where you apply, get approved for a payment, then install.
- Don’t forget about state and utility rebate programs. Often there are custom incentives available for items that are not on the standard prescriptive incentive applications.
GDS is here to help! Reach out to our team for guidance navigating the changes, investigating other available opportunities, and determining best next steps to make your energy efficiency or renewable energy project happen.
