Eligibility

Who qualifies for a REAP grant now

The October 1, 2026 rule changed who can apply and which projects count. Here is the short version, with the rule section for each point.

Last updated October 2, 2026. Reflects USDA's October 1, 2026 final rule.

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The biggest change: finish first, then apply

REAP now funds projects after they are built. Your project must have been completed between 12 and 24 months before you apply. For the first application window after the new rule, projects completed up to 36 months before are allowed. (7 CFR §4280.122(a)(1), (a)(6))

That means you pay for the project up front and use the first year of real energy data in your application. Need help with that? See project financing.

1. Your business

Rural small business

For-profit, independently owned, and within the SBA size standard for your industry. (7 CFR §4280.104) SBA size standards
Identified as a small business in your SAM.gov profile. (7 CFR §4280.120(a)(2))
Located in a rural area: not in a city or town over 50,000 people and not in the urbanized area next to one. (7 CFR §4280.104) Check your address on the USDA map

Agricultural producer

For-profit operation that produces an agricultural commodity, or has the legal right to harvest one. (7 CFR §4280.104)
New: 100% owned by one person or one family, or wholly owned by an Indian Tribe. (7 CFR §4280.104)
All owners take part in the day-to-day labor, management, or field operations. (7 CFR §4280.104)
The majority owner gets at least 50% of their income from the agricultural operation, based on the most recent calendar year. (7 CFR §4280.104)

Every applicant

Registered in SAM.gov with a Unique Entity ID, using the "All Awards" option. (7 CFR §4280.120(a)(1)) SAM.gov
In business at least 12 months before the project started. (7 CFR §4280.120(a)(5))
Not owned or controlled by any other entity (the "highest-level owner"), or wholly owned by a Tribe. (7 CFR §4280.120(a)(6))
Owns the system, and owned or controlled the site (for example, under a lease) for at least 12 months before the project started, through final payment. (7 CFR §4280.120(a)(6))
Most recent fiscal year shows positive cash flow and a current ratio of at least 1:1. (7 CFR §4280.120(a)(7))
No delinquent federal taxes or debt, unpaid federal judgments, debarment, or federal felony in the past 24 months. (7 CFR §4280.120(b))
Individuals, nonprofits, and governments cannot apply. (7 CFR §4280.120(b)(7); §4280.104)
No active REAP award whose project period runs past September 30 of the year you apply. (7 CFR §4280.120(b)(8))
One award per highest-level owner per federal fiscal year, counting other businesses the same owners hold. (7 CFR §4280.120(a)(8))
Not headquartered in a country listed as a foreign adversary (15 CFR 791.4). (7 CFR §4280.120(b)(9))
No income from gambling, sexual activities, racing, or illegal activities. (7 CFR §4280.120(b)(10))

2. Your project

A renewable energy system (solar, wind, biomass, geothermal, hydro, and others) or an energy efficiency improvement to existing buildings or equipment. (7 CFR §4280.122(a)(1))
Grant request of $1,500 to $500,000 for renewable energy, or $1,500 to $250,000 for efficiency. (7 CFR §4280.122(a)(2))
You cover at least 75% of project cost. (7 CFR §4280.122(a)(3))
On a meter dedicated to the business. (7 CFR §4280.122(a)(16))
Simple payback no longer than the system's USDA-approved useful life. (7 CFR §4280.122(a)(18))
With battery or other storage: the renewable system can produce at most 120% of your energy use from the 12 months before installation, and the storage can be no larger than the renewable system it is paired with. (7 CFR §4280.122(a)(19))
Installed by a contractor licensed in the state where the project is located who has installed at least three similar systems. (7 CFR §4280.122(a)(9))

No longer eligible

Ground-mounted solar or wind on cropland. (7 CFR §4280.122(b)(11))
Projects at more than one location. (7 CFR §4280.122(b)(10))
Two or more renewable technologies not built as one hybrid system. (7 CFR §4280.122(b)(9))
Adding batteries to an existing system, or stand-alone batteries. (7 CFR §4280.122(b)(18))
Residential use, including farm labor housing, B&Bs, and short-term rentals. (7 CFR §4280.122(b)(4)-(5))
Retrofits of existing ground-mounted solar or wind, or any solar or wind on cropland. (7 CFR §4280.122(b)(7))
Solar or wind, rooftop or ground, installed on or after October 1, 2026 with any component made in a country listed as a foreign adversary. Earlier installs are exempt. (7 CFR §4280.122(b)(19))

This is a summary, not the full list. Read the full rule or confirm with your State Energy Coordinator.

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