By Amanda Pankau
Clean energy brings many benefits to rural communities, businesses, and farms, including lower energy costs, well-paying jobs, revenue, grid stability, and cleaner air and water. Thanks to the Inflation Reduction Act, new programs will boost the clean energy transition in rural communities. One such program, that we’ve shared information about before, is USDA-Rural Development’s Rural Energy for America Program (REAP).
The Rural Energy for America Program (REAP) provides grant funding and guaranteed loan financing to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Eligible projects can include solar, geothermal, energy efficiency upgrades and more. The 2023 deadline for REAP grant applications is March 31, 2023.
Visit www.tinyurl.com/USDA-REAPGrant or contact the IL USDA Rural Development Energy Coordinator, callie.heidbreder@usda.gov, for more information about the REAP grants in Illinois.
State and Federal Incentives for Solar
The REAP Program is just one of many state and federal incentives that make solar and clean energy more affordable. Illinois’ new Climate and Equitable Jobs Act (CEJA) boosted funding for solar, and created several new solar workforce and small business development programs. For instance, state Renewable Energy Credits (RECs) are available for most projects and provide 20 to 40% of a project’s costs, making solar development both more affordable for rural households and businesses and profitable for solar developers. Programs like community solar and Illinois Solar for All make solar more accessible to renters and low-income and environmental justice communities.
Clean energy investments from the bipartisan Infrastructure Investment and Jobs Act (IIJA) paired with boosted federal tax credits, thanks to the Inflation Reduction Act, further support the clean energy transition in rural communities. The solar energy tax credit is a 30% tax credit that can be claimed on federal income taxes for the cost of a solar system. The IIJA and Inflation Reduction Act will provide funding for electric school buses, clean energy demonstration projects in rural areas, smart grid improvements, funding for environmental justice communities, clean energy technology supply chains, and more.
REAP Grant Success Stories
On Monticello’s courthouse square, the Bespoke Gift Company installed solar on its 137-year old building. Small business owners, Tasha Dunaway and Jeff Zumwalt, first invested in energy efficiency upgrades before jumping into a rooftop solar project. Thanks to the benefits of state RECs, federal tax credits, accelerated depreciation, and a REAP grant, the project will pay for itself in less than 2 years. Inspired by the Bespoke project, farmers Wes and Sarah Hornback of Sunset Acres were awarded a REAP grant to help with the installation of a small solar array to help with electricity costs on their farm in rural Piatt County.
Prairie Rivers Network is working with rural Illinois communities to help them understand and reap the benefits of renewable energy policies and programs. We look forward to seeing renewable energy projects continue to improve the environmental and economic well being of rural communities across Illinois.
