2026 USDA REAP Grant

Grants to Power Your Rural Solar Project

Use the USDA REAP Grant to Power Your 2026 Solar Project


Program Overview

What Is the USDA REAP Grant and How Does It Work in 2026?

The USDA Rural Energy for America Program (REAP) provides grants and guaranteed loans to agricultural producers and rural small businesses to help pay for renewable energy systems and energy efficiency improvements. In 2026, REAP funding is governed by a multi-year Notice of Funding Opportunity (NOFO) that covers fiscal years 2025, 2026, and 2027, with anticipated funding on the order of hundreds of millions of dollars per year nationally.

Under current rules, REAP grants for renewable energy systems like solar photovoltaics are generally capped at $1 million per project, with energy efficiency grants capped at $500,000.

The federal cost share depends on the funding source:

  • Farm Bill / base funds: Up to 25% of total eligible project costs.
  • Inflation Reduction Act (IRA) REAP funds: Up to 50% of total eligible project costs for qualifying projects.

Because the program blends Farm Bill and IRA funding, and guidance continues to evolve, applicants for USDA REAP Grant 2026 should confirm cost-share levels with their State Energy Coordinator and the current NOFO at the time they apply.

What’s New

Recent Changes to REAP That Affect 2026 Solar Grants

Before planning a USDA REAP Grant 2026 solar project, it’s critical to understand recent program changes that affect eligibility, timing, and project design.

Multi-Year REAP NOFO (FY 2025–2027)

In October 2024, USDA Rural Development issued a comprehensive NOFO covering REAP grant and loan competitions for fiscal years 2025, 2026, and 2027. The notice increased maximum RES grant requests to $1,000,000 and EEI grants to $500,000, and clarified that IRA-funded projects can receive up to a 50% federal grant share.

Application Pauses & FY 2026 Windows

USDA has temporarily paused certain REAP application windows to manage heavy demand and the transition between funding cycles. Stakeholder announcements indicate that Farm Bill (25%) applications were accepted through March 31, 2025, and that both IRA and Farm Bill applications are expected to reopen for FY 2026 funding around October 1, 2025.

Practical takeaway: for projects targeting USDA REAP Grant 2026, plan to have your project concept, quotes, and supporting documentation ready ahead of the FY 2026 competition windows.

Heightened Scrutiny for Solar on Farmland

In mid-2025, USDA signaled a policy shift away from funding larger solar and wind facilities on productive farmland, with a particular impact on some loan programs and large, ground-mounted systems.
Subsequent guidance clarified that:

  • USDA is tightening eligibility for large, ground-mounted solar through certain loan programs.
  • Ground-mounted solar systems above 50 kW and projects that cannot document historical energy use
    may be excluded from some REAP guaranteed loan pathways.
  • USDA wants “right-sized” systems that match on-farm or business energy needs, rather than large
    merchant or speculative projects.

REAP grants remain available for solar in many cases, but project siting (especially on productive
farmland) and sizing relative to your historic energy use now matter more than ever.

Uncertain Long-Term Funding Beyond IRA

The Inflation Reduction Act injected over $2 billion into REAP and temporarily made 50% cost share widely available. As IRA funds wind down and future Farm Bill and appropriations debates continue, some analyses anticipate lower baseline funding in later years.

For 2026, the multi-year NOFO provides a clear framework, but applicants should not assume that current grant percentages will last indefinitely.

USDA REAP Grant 2026

Use the USDA REAP Grant 2026 to Power Your Solar Project

The USDA Rural Energy for America Program (REAP) can cover a significant share of your solar project costs in 2026. We help agricultural producers and rural small businesses plan right-sized solar projects that align with the latest REAP rules, funding windows, and policy changes.

Request a USDA REAP 2026 Solar Assessment
Focused on USDA REAP Grant funding for 2026 solar projects.


Eligibility & Projects

Who Qualifies for USDA REAP Grant 2026 Solar Funding?

REAP is intentionally narrow: it is not a general commercial solar program. It is built for rural producers and businesses.

Eligible Applicants

  • Agricultural producers: Individuals or entities directly engaged in agricultural production (with at least 50% of gross income from agriculture in many cases).
  • Rural small businesses: For-profit small businesses located in eligible rural areas, as defined by USDA.
  • Co-ops and tribal businesses: Certain cooperatives and tribal entities may also qualify where they meet program rules.

Eligibility hinges on location, business size, and NAICS-type activity. USDA’s eCFR rules and State Energy Coordinators provide final guidance.

Eligible Solar Project Types

REAP supports renewable energy systems (RES) and energy efficiency
improvements (EEI). For solar, common 2026-eligible projects include:​

  • Rooftop solar on farm buildings, shops, barns, and processing facilities.
  • Rooftop solar on rural small business facilities (warehouses, offices, retail, light industrial).
  • Right-sized ground-mounted solar arrays serving on-site loads (subject to new farmland and sizing guidance).
  • Solar carports and canopy systems over parking or equipment yards.
  • Solar integrated with energy efficiency upgrades (LED lighting, efficient motors, refrigeration, etc.).

Large, speculative, or off-site merchant solar projects are generally not REAP-eligible and may face
additional restrictions under recent USDA policy updates.

Process

How to Apply for USDA REAP Grant 2026 for a Solar Project

Successful REAP applications treat the grant as a competitive capital stack—not an afterthought. Here’s a
practical roadmap for 2026.

1. Confirm Eligibility & Rural Location

  • Verify that you qualify as an agricultural producer or rural small business.
  • Use USDA’s eligibility tools and maps to confirm your location is considered rural for REAP purposes.
  • Contact your USDA Rural Development State Energy Coordinator in WA, MT, or OR for a quick sanity check.

2. Right-Size the Solar Project

  • Gather 12–24 months of utility bills to understand your energy use.
  • Work with a solar designer who understands REAP and can model a system sized to your historical loads.
  • Pay attention to USDA’s emphasis on “right-sized” projects tailored to your facility, especially for on-farm solar.

3. Build a Complete Cost & Financing Package

  • Obtain firm quotes for equipment, labor, interconnection, and any structural upgrades.
  • Determine whether you will pursue grants only, loans only, or a combined grant + guaranteed loan request.
  • Model how REAP interacts with the federal Investment Tax Credit (ITC) and any state or utility incentives.

4. Align With the 2026 Application Window

  • Review the current NOFO and stakeholder announcements for FY 2026 deadlines.
  • Plan to submit well before the close of the competition window—heavy demand can slow reviews.
  • Do not start construction before USDA completes its environmental review, or those costs may be ineligible.

5. Prepare a Strong Technical Narrative

  • Describe your existing operations, energy use, and how the solar system will be integrated.
  • Address technical merit, equipment specs, and expected production in a clear, non-jargony way.
  • Highlight any climate resilience, emissions reduction, or community benefits that align with USDA priorities.

6. Submit, Respond, and Stay in Touch

  • Submit your complete application through the appropriate USDA channel (often via your state RD office or Grants.gov).
  • Respond quickly to any clarification requests from USDA.
  • Keep your installer, tax advisor, and lender aligned as you approach award, construction, and commissioning.


Plan Your USDA REAP Grant 2026 Solar Project

If you are an agricultural producer or rural small business, we can help you evaluate eligibility, design a right-sized solar project, and prepare a competitive USDA REAP Grant 2026 application.

Schedule a REAP 2026 Solar Consultation

Or call us directly at (800) 696-8935.

FAQ

USDA REAP Grant 2026 FAQ

Common questions about using the USDA REAP Grant for 2026 solar projects.

What is the maximum grant amount for a solar project under REAP?

For fiscal years 2025–2027, including 2026, REAP’s maximum grant request for renewable energy systems
(including solar) is generally $1,000,000, while energy efficiency grants are capped at
$500,000. Actual awards may be smaller and depend on funding availability and scoring.

Can the USDA REAP Grant 2026 pay for 50% of my solar project?

It might—but not always. Projects funded with IRA REAP dollars can qualify for up to a 50% federal grant
share if they meet specific criteria, while projects funded with Farm Bill dollars are generally limited
to 25%. REAP guidance also caps the total federal grant share across programs, so you cannot stack REAP
and other federal grants above those limits.

Does REAP still support large ground-mounted solar projects?

REAP continues to support solar, but USDA has signaled a move away from larger-scale solar and wind on
productive farmland and has imposed new limits on some loan programs, particularly for ground-mounted
systems over 50 kW or projects without documented historic energy use.
Smaller, on-site, right-sized systems remain the safest fit for REAP.

Can I apply for USDA REAP Grant 2026 and still claim the federal ITC?

In many cases, yes. REAP grants can be combined with the federal Investment Tax Credit (ITC), although
the grant may reduce the tax basis for calculating the ITC. Applicants should work with their tax advisor
to model the interaction correctly.

When should I start planning a REAP-funded solar project for 2026?

Start now. Given application pauses, evolving NOFO guidance, and heavy demand, it’s wise to have an
engineer-reviewed design, quotes, and supporting documents ready before FY 2026 windows open—currently
anticipated around October 1, 2025, for many applicants.

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