REAP questions, answered

USDA published a new final rule for REAP on October 1, 2026. It takes effect October 16, 2026. (7 CFR part 4280) USDA will publish the application period dates on its website. (7 CFR §4280.133(a)) See Is REAP open right now? for the current status, or ask us.

No, not under the new rule. The project must be completed between 12 and 24 months before you apply. For the first application window after the rule, projects completed up to 36 months earlier can apply. (7 CFR §4280.122(a)(1), (a)(6))

Grant requests must be at least $1,500. The maximum is $500,000 for a renewable energy system and $250,000 for an energy efficiency improvement. (7 CFR §4280.122(a)(2)) You must cover at least 75% of the project cost yourself, so the grant can be at most 25%. (7 CFR §4280.122(a)(3))

Not if it sits on cropland. Ground-mounted solar panels and wind turbines installed on cropland are ineligible under the new rule. (7 CFR §4280.122(b)(11)) Ground-mounted solar or wind elsewhere must also document historical energy use that matches the system. (7 CFR §4280.122(b)(13)) Rooftop solar is not affected by the cropland restriction. One rule covers both rooftop and ground systems: solar panels and wind turbines installed on or after October 1, 2026 cannot include any component made in a country listed as a foreign adversary in 15 CFR 791.4. Systems installed before that date are exempt. (7 CFR §4280.122(b)(19))

A for-profit operation that produces an agricultural commodity and is either 100% owned by one person or one family, or wholly owned by an Indian Tribe. All owners must take part in day-to-day labor, management, or field operations, and the majority owner must earn at least 50% of their income from the agricultural operation, based on the most recent calendar year. (7 CFR §4280.104)

A for-profit business that meets SBA size standards for its industry and is located in a rural area. Rural means outside any city or town with more than 50,000 people and outside the urbanized area next to such a city or town. (7 CFR §4280.104) The business must also be identified as a small business in its SAM.gov profile. (7 CFR §4280.120(a)(2))

USDA scores applications out of 90 points across six areas: impact, energy saved or produced per grant dollar, percent of energy saved or replaced, environmental benefits, prior awards, and simple payback. Up to 10 more priority points may be added. Applications scoring under 40 points will not be funded. (7 CFR §4280.140(d)-(e); §4280.150) Estimate your score.

Residential use is excluded, including homes, apartments, farm labor housing, bed and breakfasts, and short-term rentals like Airbnb or VRBO. The project must have a meter dedicated to the business. (7 CFR §4280.122(a)(16), (b)(4)-(5)) Narrow exceptions exist for licensed 24/7 nursing or assisted living, for-profit hotels with stays of 30 days or less, and community solar subscriptions. (7 CFR §4280.122(a)(17))

Your most recent fiscal year must show positive cash flow and a current ratio of at least 1:1 (current assets at least equal to current liabilities). (7 CFR §4280.120(a)(7)) You will also need business-level financial statements, and two years of pro forma statements if the project cost $200,000 or more. (7 CFR §4280.131(a)(9))

Each highest-level owner can receive one award per federal fiscal year, and a given project can be submitted only once per fiscal year. (7 CFR §4280.120(a)(8); §4280.133(c))

No. USDAREAPGrant.com is an independent website operated by Cleaner Greener Future LLC. We help farms and rural businesses understand REAP and prepare applications. For official guidance, contact your USDA Rural Development State Energy Coordinator.