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Understanding Rural Energy for America Program (REAP) Grants as an Investor

About the REAP Program

The Rural Energy for America Program (REAP) grants provide valuable support to agricultural producers and rural small businesses looking to improve their energy efficiency or implement renewable energy systems. This program aims to promote sustainable energy practices and lower operational costs, benefiting the environment and the rural economy.


The Rural Energy for America Program (REAP) originated with the passage of the Inflation Reduction Act. This transformative legislative milestone has allocated over $2 billion for renewable energy systems and energy efficiency improvement grants. This initiative aims to support agricultural producers and rural small business owners in pursuing sustainable energy solutions.

An exciting development is the establishment of an Underutilized Technology Fund, receiving an initial infusion of $144.5 million to support renewable energy technologies that previously constituted less than 20% of the project pool. REAP operates as a competitive program, where projects across all states are assessed against one another, ensuring that innovative and impactful ideas are supported.

What are REAP Grants?

REAP grants provide financial assistance to agricultural producers and rural small businesses to install renewable energy systems (RES) or make energy efficiency improvements (EEI). 

How Issuers on Climatize Use REAP Grants to Repay Investors

Issuers on Climatize leverage USDA REAP grants to secure a portion of returns for their investors. By participating in the USDA REAP program,  the projects listed on Climatize’s portal can receive grants covering up to 50% of the project’s costs. The grant funds become available once these projects have documented one month of production data.

The USDA REAP program is designed to support agricultural producers and rural small businesses by providing financial assistance for renewable energy system installations and energy efficiency upgrades. Eligible applicants include agricultural producers earning at least half of their income from agricultural activities and small businesses in qualifying rural areas.

By securing these grants, issuers can repay their investors when the project is fully operable.

What are the Grant Terms?

REAP grants have specific funding limits based on the type of project:

Renewable Energy System Grants:

Minimum: $2,500

Maximum: $1 million

Energy Efficiency Grants:

Minimum: $1,500

Maximum: $500,000

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