The United States Department Of Agriculture (USDA) has awarded loans and grants for energy efficiency improvements and renewable energy systems to more than 1,100 rural small businesses and agricultural producers.
USD $102 million in loan guarantees and $71 million in grants has been provided to 1,114 projects financed through the latest round of Rural Energy for America Program (REAP), which has helped finance 10,753 renewable energy and energy efficiency projects during the Obama administration.
Collectively, these projects will generate or save an estimated 8.4 million megawatt hours of electricity and reduce greenhouse gas emissions by almost 5 million metric tonnes.
” This funding will help incorporate renewable energy and energy efficiency technology and reduce energy costs,” said Agriculture Secretary Tom Vilsack. “But beyond the local benefits seen by a company saving energy costs and the global benefits of reducing carbon emissions, this funding will also create American jobs by supporting energy production and efficiency installations that are made in rural America.”
Under the program, grants for up to 25 percent of total project costs are offered and loan guarantees for up to 75 percent of total project cost. The minimum grant amount for renewable energy systems is $2,500 and the maximum is $500,000. For loan guarantees, the minimum is $5,000 and the maximum loan guarantee is $25 million.
Eligible renewable energy projects include biomass, geothermal, hydro, hydrogen, wind energy, solar power systems and marine.
Among the recipients of the latest round is Fresh Air Energy XVI, LLC; which is receiving a $3.8 million loan guarantee to finance a 6.5 megawatt solar power system in Greene County, North Carolina.
“President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities,” says a USDA statement.
” Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities.”
Last year, $12.3 million in grants and $56.4 million in loans were awarded under REAP. REAP program funds can also be used for the purchase, installation and construction of energy efficiency improvements; such as high efficiency heating and cooling systems, insulation, lighting and upgrading of equipment.
