USDA invests $256 million in rural clean energy projects

The U.S. Department of Agriculture is ramping up its support for clean energy adoption across rural America. The agency recently announced more than $256 million in new loans and grants that will fund projects across 40 states.

This latest round of funding pushes the total investment through the Rural Energy for America Program (REAP) past the $1 billion milestone utilizing funding from the 2022 Inflation Reduction Act. The grants and loans will support farmers and rural businesses in transitioning to renewable energy sources and implementing energy efficiency improvements.

These projects include solar installations, wind energy systems, hydropower retrofits and upgrades to irrigation and agricultural equipment.

Climate change often takes a disproportionate toll on rural America, and the investment offers a way for these communities to be part of the solution while reducing operational costs for farmers. REAP has seen record demand in recent years, with money pouring in even before the passage of the IRA. Since 2021, the USDA has invested more than $2.7 billion through REAP in 9,901 renewable energy and energy efficiency improvements.

In the announcement, Agriculture Secretary Tom Vilsack highlighted how the investments will “help rural communities lead our country toward an economy that benefits working people everywhere with lower costs and clean energy jobs.”

In the latest round, one of the of the largest projects announced is in Brown County, Wisconsin, where Tinedale Project LLC secured a $22 million loan to develop a dairy manure anaerobic digester. The facility will capture bio-methane and convert it into renewable natural gas for distribution through local utility pipelines, while also creating jobs.

In Arizona, fresh produce wholesaler IPR Fresh is leveraging REAP funding to achieve energy independence. The company will use a $350,000 grant to install a roof-mounted solar system expected to save $67,000 annually while providing 100% of their electricity needs.

The program is also supporting hydropower projects. In Stevens County, Washington, Hydro Technology Systems Inc. received $172,000 to install a hydropower retrofit turbine that will generate enough electricity to power approximately 760 homes.

Agricultural efficiency improvements are another key focus. In Georgia, Agriventures LLC, a family cotton farm, will use a $111,000 grant to replace four center pivot irrigation systems, leading to annual energy savings of more than $2,000.

A full list of projects awarded funding is available through the USDA website.

Photo by Mark Stebnicki