As utility costs continue to rise, businesses now have the opportunity to take advantage of a number of programs that can help to reduce overhead. These programs provide the opportunity to obtain grants for the equipment and installation of clean energy sources, like solar, wind, and biomass.
The federal government is offering a federal grant to businesses looking to utilize solar energy. These grant programs by the USDA can help those who felt solar power was far above their small business budget. Because of these programs, switching to solar and lowering the overall business costs has never been easier.
Energy-efficient
Solar heat can be used to dry crops, warm livestock buildings, and even power the home
Not only is solar power energy-efficient and renewable (meaning it is wonderful for the environment), but it will save users money overall. Solar heat can be used to dry crops, warm livestock buildings, and even power the home.
Solar energy can also help users increase their own self-reliance. If they live in a rural area, they might often be worried about energy cuts or blackouts. When using solar, this is not something they need to be worried about.
Through small business innovation research, agricultural producers found that solar power is not only a great way to save money, but it is also a great way to generate clean energy to power the farms. Finally, after enough research and development, REAP was born.
REAP program
The REAP is a program put on by the United States Department of Agriculture. Essentially, this program is a government incentive that is designed to help small and rural businesses, as well as farmers, obtain energy efficiency upgrades and install new solar systems.
According to Energy.gov, in 2015 alone, a total of $63 million in grants and loans were awarded through the USDA REAP program. Whether one is a large farming operation or a small business in a rural area, they may be able to apply.
Grants and loans
These grants and loans will be given out based on need and ability to prove the business will utilize the renewable energy systems.
- Energy grant: REAP provides solar panel grant funding for up to 25% of new solar installation projects.
- Loans: This program provides loan guarantees covering up to 75% of the total energy efficiency improvements made to the business.
The amount of the funding will range anywhere from $2,500, all the way up to a maximum of $500,000 for renewable energy systems. For improvements to already existing energy-efficient systems, there will be a rebate amount ranging from $1,500 to $250,000.
Tax credit
Now that solar energy has been around for more than a few years, the cost of installing solar is at an all-time low, and choosing a solar installer is easier than ever.
Each year, prices begin to fall. In addition to utilizing the REAP grant, buyers can also take advantage of the 22% tax credit that goes along with solar energy. This, along with other state incentives, can help buyers to significantly decrease the costs of going solar, overall increasing their bottom line.