Keaton PetersSmall rural electric systems are receiving financial help to improve services and build clean energy capacity. In a push to modernize rural energy infrastructure, U.S. Department of Agriculture announced $78.3 million in new partially forgivable loans for clean energy projects. The funding will support seven projects across five states and territories through the Powering Affordable Clean Energy (PACE) program, with several municipal utilities and rural electric cooperatives leading the way.
The latest funding round brings USDA’s total PACE program commitments to nearly $1 billion, marking a significant milestone in efforts to expand renewable energy access in rural America. The program, funded through the 2022 Inflation Reduction Act, is being touted by USDA officials as the largest investment in rural electrification since the Rural Electrification Act of 1936.
Electric utilities are at a crossroads as energy demand keeps going up, and the transition to clean power sources is underway but far from complete. Rural communities often have less resources to navigate these changes than do major electric corporations or cities with large tax bases. The PACE program specifically targets this challenge by offering loans with up to 60% forgiveness to rural electric cooperatives, municipal utilities and other rural energy providers.
“Partnering with local governments, companies, and others to provide clean, reliable energy to rural Americans lowers people’s costs, strengthens the nation’s energy security and reduces pollution,” U.S. Secretary of Agriculture Tom Vilsack said in a press release.
In Ohio, the Village of Pioneer secured $10.5 million to finance multiple solar facilities totaling 4.9 megawatts of renewable energy capacity. The municipal utility’s project will generate enough clean electricity to power nearly 952 households annually.
Another project receiving a loan is the Town of Stowe Electric Department in Vermont, which received $6 million to develop a combination of small hydroelectric and solar facilities with a backup battery energy storage system. The project is expected to provide renewable energy to approximately 115 local households while maintaining grid reliability through its hybrid approach.
The program is also supporting projects that partner with rural electric cooperatives. In Washington state, a $4 million investment will help develop nearly 3 megawatts of solar generation that will interconnect with Big Bend Electric Cooperative’s distribution system. The project will supply clean power to roughly 560 households each year.
The funding extends beyond the landlocked U.S. American Samoa, where multiple projects will dramatically expand renewable energy access. Through agreements with two solar projects receiving a combined $35.5 million in PACE funding, the public power company will be able to provide clean power to approximately 3,800 households on Tutuila Island. The projects will help the public utility meet nearly 18% of the island’s energy needs with renewable sources, while reducing dependence on expensive imported diesel fuel.
Since the PACE program’s launch, USDA has selected 34 projects totaling more than $995 million in partially forgivable loans. Details on each of the selected projects can be found on the PACE website.
Photo by Abdelrahman Ahmed
