2026 USDA REAP Grant

Grants to Power Your Rural Solar Project

Use the USDA REAP Grant to Power Your 2026 Solar Project

Program Overview

USDA REAP Grant 2026: Grants Are Paused, Loans Are Still Open

Updated September 30, 2026

The USDA Rural Energy for America Program (REAP) helps agricultural producers and rural small businesses pay for renewable energy systems, like solar, and energy efficiency improvements. It has two parts: competitive grants and guaranteed loans. In 2026 the two are in very different places.

REAP grants are on hold. On March 31, 2026, USDA Rural Development announced that REAP “will not be making further grant awards until the new regulations are in effect.” USDA is rewriting the program rules and hasn’t set a date for them. After the new rules take effect, USDA says it will publish a new funding notice with application windows, and past applicants will be able to reapply.

REAP guaranteed loans are still available. USDA is still accepting guaranteed loan applications year-round through local lenders. A REAP-guaranteed loan can finance up to 75% of eligible project costs, up to $25 million. For many farms and rural businesses, this is the way to use REAP for a solar project right now.

Before the pause, REAP grants worked like this, and the next round may use similar terms:

Grant caps: Up to $1 million for renewable energy systems like solar, and up to $500,000 for energy efficiency projects.
Cost share: Up to 25% of eligible project costs with Farm Bill funds, or up to 50% with Inflation Reduction Act (IRA) funds for qualifying projects.

The new regulations may change grant amounts, cost share, and solar eligibility. USDA has already said it will stop funding solar that displaces productive farmland. If you plan to apply for a REAP grant, get your project designed and documented now so you’re ready when the next window opens. We’ll update this page when USDA publishes the new rules.

What’s New

REAP Changes in 2025–2026: What Solar Projects Need to Know

REAP has changed more in the past year than at any point in its history. Here’s what happened, newest first, and what it means for a USDA REAP Grant 2026 solar project.

September 2026: Lawsuit Challenges the Grant Freeze

On September 28, 2026, Earthjustice, the Environmental Law & Policy Center, and Wolf River Electric sued USDA in federal court in Washington, D.C. They argue that halting REAP solar funding violates federal law and goes against what Congress intended. The court hasn’t ruled, and the case doesn’t change the program’s current status.

April 15, 2026: FY 2025–2027 Funding Notice Rescinded

USDA formally withdrew the multi-year Notice of Funding Opportunity (NOFO) from October 2024. That notice set the scoring rules and deadlines for REAP competitions in fiscal years 2025 through 2027. With it withdrawn, there is no published grant schedule right now.

If you applied before but never received a fully executed funding agreement, you’ll need to submit a new application under the new rules.

March 31, 2026: Grant Awards Halted, Loans Continue

USDA announced that REAP “will not be making further grant awards until the new regulations are in effect.” The agency is rewriting the program rules to follow Executive Order 14315, “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources.” USDA hasn’t given a timeline.

REAP guaranteed loans were not affected. USDA is still accepting applications year-round.

August 2025: New Limits on Farmland Solar

USDA announced it would stop funding solar on productive farmland and stop allowing solar panels made by foreign adversaries in USDA-funded projects. For REAP, that meant:

Ground-mounted solar systems larger than 50 kW are ranked lower for grants and are not eligible for loan guarantees.
Projects that can’t document historical energy use face the same limits.
Panels and components made by foreign adversaries are not allowed.

Rooftop and small, right-sized systems that match your actual energy use are still the best fit for REAP.

June 2025: FY 2026 Grant Window Postponed

The FY 2026 grant window was supposed to open July 1, 2025. USDA postponed it, citing a backlog of applications. It never opened, and the March 2026 freeze followed.

What This Means for Your Solar Project

Need to start soon? A REAP guaranteed loan combined with the federal tax credit, and any state or utility incentives, may make the numbers work without a grant.
Waiting for grants? Get ready now. Gather 12–24 months of utility bills, a right-sized design, and firm quotes so you can apply quickly when a new NOFO comes out.
Plan on new rules. Grant amounts, cost share, and solar eligibility may all be different when REAP reopens. We’ll update this page when USDA publishes the new regulations.

USDA REAP Grant 2026

Plan Your Solar Project Around the USDA REAP Grant in 2026

REAP grants are paused while USDA rewrites the program rules. That doesn’t mean your project has to wait. We help agricultural producers and rural small businesses weigh their options: move ahead now with a REAP guaranteed loan and the federal tax credit, or get a right-sized, fully documented project ready to apply as soon as grants reopen.

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For farms, ranches, and rural businesses in Washington, Montana & Oregon.

Eligibility & Projects

Who Qualifies for USDA REAP Solar Funding in 2026?

REAP is intentionally narrow. It isn’t a general commercial solar program; it’s built for farms and rural businesses. These rules apply to REAP guaranteed loans today, and they’re expected to carry over when grants reopen under USDA’s new regulations.

Eligible Applicants

Agricultural producers: Individuals or entities that get at least 50% of their gross income from agricultural operations. Producers can qualify in rural or non-rural areas.
Rural small businesses: For-profit small businesses in USDA-eligible rural areas, generally outside cities and towns of more than 50,000 people.
Co-ops and tribal businesses: Some cooperatives and tribal entities also qualify if they meet program rules.

Eligibility depends on location, business size, and type of business. Your USDA Rural Development State Energy Coordinator has the final word.

Solar Projects That Fit REAP Best

REAP funds renewable energy systems and energy efficiency improvements. Since USDA’s August 2025 changes, these solar projects are the strongest fit:

Rooftop solar on barns, shops, farm buildings, and processing facilities.
Rooftop solar on rural business buildings: warehouses, offices, retail, and light industrial.
Ground-mounted arrays of 50 kW or less, sized to your documented energy use.
Solar carports and canopies over parking or equipment yards.
Solar paired with efficiency upgrades like LED lighting, efficient motors, and refrigeration.

Ground-mounted systems over 50 kW are ranked lower for grants and aren’t eligible for REAP loan guarantees. Projects on productive farmland, projects without documented energy use, and projects using components from foreign adversaries face the same limits or are excluded.

Process

How to Use REAP for a Solar Project in 2026

With grants paused, there are two paths: build now with a REAP guaranteed loan, or prepare a project that’s ready to submit when grants reopen. The first steps are the same either way.

1. Confirm Eligibility & Location

Make sure you qualify as an agricultural producer or rural small business.
Use USDA’s eligibility map to confirm your site counts as rural for REAP.
Check in with your USDA Rural Development State Energy Coordinator in WA, MT, or OR.

2. Right-Size the Solar Project

Gather 12–24 months of utility bills. USDA now requires documented energy use for many solar projects.
Size the system to your actual loads, not to the land you have available.
Favor rooftop, carport, or ground-mounted designs of 50 kW or less to stay inside the current rules.

3. Choose Your Path: Loan Now or Grant Later

Loan now: REAP guaranteed loans are open year-round and can finance up to 75% of eligible project costs.
Grant later: No grant window is open, and USDA hasn’t set a date. New rules may change amounts and eligibility.
Some owners do both: they finance with a loan now and skip waiting on an uncertain grant.

4. Build Your Cost & Tax Credit Plan

Get firm quotes for equipment, labor, interconnection, and any structural upgrades.
Confirm that all equipment meets USDA and federal sourcing rules.
Plan around the federal solar tax credit deadline: projects starting construction now must be in service by December 31, 2027.

5. Prepare Your Technical Documentation

Describe your operation, your energy use, and how the solar system fits in.
Include equipment specs and expected production in plain language.
Keep everything current so you can submit quickly when grants reopen.

6. Apply, and Don’t Start Construction Early

Loans: Apply through a REAP-participating lender, which submits to your state USDA Rural Development office.
Grants: Watch for USDA’s new regulations and funding notice. Past applicants will need to reapply.
Don’t start construction before USDA finishes its environmental review, or those costs may not be eligible.

Plan Your USDA REAP Solar Project

Whether you want to build now with a REAP guaranteed loan or be first in line when grants reopen, we can help. We’ll confirm your eligibility, design a right-sized system, and put together the numbers and documents USDA and your lender will ask for.

Schedule a Free REAP Solar Consultation

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

FAQ

USDA REAP Grant 2026 FAQ

Common questions about REAP funding for solar projects in 2026.

Is the USDA REAP Grant available in 2026?

Not right now. On March 31, 2026, USDA announced it would make no further REAP grant awards until new program regulations take effect. On April 15, 2026, it withdrew the FY 2025–2027 funding notice. USDA hasn’t said when the new rules will be published.

Can I still use REAP for a solar project?

Yes. REAP guaranteed loans weren’t affected by the pause. USDA still accepts applications year-round through participating lenders. A REAP-guaranteed loan can finance up to 75% of eligible project costs, up to $25 million.

How much did REAP grants cover, and will that change?

Before the pause, solar grants were capped at $1,000,000, and energy efficiency grants at $500,000. Grants covered up to 25% of eligible costs with Farm Bill funds, or up to 50% with Inflation Reduction Act funds. USDA’s new regulations may change those amounts, so don’t count on the old terms.

Does REAP still support ground-mounted solar?

Only smaller systems. Since August 2025, ground-mounted systems over 50 kW are ranked lower for grants and aren’t eligible for REAP loan guarantees. The same goes for projects without documented energy use. USDA also won’t fund solar on productive farmland or panels made by foreign adversaries. Rooftop systems and right-sized ground mounts are the safest fit.

Can I combine REAP with the federal solar tax credit?

Generally yes, but the deadline is now tight. Under the 2025 federal tax law, commercial solar projects that didn’t begin construction by July 4, 2026 must be placed in service by December 31, 2027 to claim the credit. If you’re pairing a REAP loan with the tax credit, plan to finish in 2027, and work with your tax advisor on how REAP funding affects the credit.

When will REAP grants reopen?

There’s no date yet. USDA says it will publish a new funding notice after its revised regulations take effect. A lawsuit filed in September 2026 challenges the freeze, but it hasn’t changed the program’s status. The best move is to have a right-sized design, quotes, and energy records ready so you can apply as soon as a window opens.