By Cornell CCE-ENYCHP
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing. There are 2 application periods in 2024: April 1-June 30, 2024, and July 1 - September 30, 2024. There are two types of projects, renewable energy systems and energy efficiency improvements.
Funds (loans and grants ranging from $2,500 to $1million) may be used for the purchase and installation of renewable energy systems, such as:
• Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
• Geothermal for electric generation or direct use.
• Small and large wind generation.
• Small and large solar generation.
Funds (loans and grants ranging from $1,500 to $500,000) may also be used for the purchase, installation and construction of energy efficiency improvements, such as:
• High efficiency heating, ventilation and air conditioning systems (HVAC).
• Insulation.
• Lighting.
• Cooling or refrigeration units.
• Doors and windows.
• Electric, solar or gravity pumps for sprinkler pivots.
• Switching from a diesel to electric irrigation motor.
• Replacement of energy-inefficient equipment.
Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.
What type of funding is available?
• Loan guarantees (80%) on loans up to 75 percent of total eligible project costs.
• Grants for up to 50 percent of total eligible project costs.
• Combined grant and loan guarantee funding up to 75% of total eligible project costs.
Contact your state USDA RD energy coordinator for more information.