USDA Funds Renewable and Energy Efficiency Projects

usda-rd-logo3The U.S. Department of Agriculture (USDA) is investing $68 million in 540 renewable energy and energy efficiency projects nationwide. The funding is provided through the agency’s Rural Energy for America Program (REAP). REAP was created by the 2008 Farm Bill and was reauthorized by the 2014 Farm Bill. The program investments—largely in solar but including at least some geothermal heat pump projects—are meant to reduce America’s energy consumption and cut carbon pollution, while saving agribusinesses nearly $45 billion on their energy bills.

Eligible agricultural producers and rural small businesses may use REAP loan guarantees and grants to make energy efficiency improvements or install renewable energy systems including solar, wind, renewable biomass (including anaerobic digesters), small hydroelectric, ocean energy, hydrogen, and geothermal.

Geothermal Can Get a Bigger Piece of the Pie
Though 540 projects were selected in this round of REAP funding, 240 are for solar technologies, but only 10 involved geothermal heat pumps (GHPs) in eight states. Out of $12,276,548 provided in project grants, geothermal projects totaled $273,391, or only 2.2% of grant money available from the REAP program.

The Geothermal Exchange Organization (GEO) actively advocates for continuation of the REAP program. “To better take advantage of USDA renewable and energy efficiency funds, the agricultural community needs more information about how GHPs can help lower costs for not only heating and cooling, but for process work as well,” said GEO President Doug Dougherty. “We must make a better effort at the local and regional levels with state agricultural extension services to get more information out about the REAP program, and the good word about GHPs.”