Rural Energy For America Program Offers Guaranteed Loans and Grants

Program Focuses on Energy Independence, Stronger Rural Economy

The U.S. Department of Agriculture (USDA) Rural Development will, in the near future, publish a notice inviting applications for the Rural Energy for America Program.  This program, authorized through the 2008 Farm Bill, is an expansion of Section 9006 of the 2002 Farm Bill which established the Renewable Energy Systems and Energy Efficiency Improvements loan and grant program.  Eligible applicants include agricultural producers and small rural businesses, but residential purposes are not eligible. 

Since implementation of the program in 2003, Wisconsin Rural Development has awarded over $18 million of grant and guaranteed loan funding to assist more than 100 agricultural producers and/or small business with energy efficiency and renewable energy projects.  The energy efficiency projects have included replacing on-farm grain dryers, high-efficiency lighting systems, green house thermal curtains, and energy-efficient manufacturing equipment.  Examples of renewable energy systems include solar, wind, geothermal, anaerobic digesters, wood boilers and biodiesel facilities.

Program funds can assist projects that improve energy efficiencies of existing agricultural, commercial, or industrial buildings; replacing equipment, such as pumps, motors, and processing equipment; or replacing systems such as heating, cooling, lighting, heat exchange systems, etc.  Recipients may also apply for renewable energy projects to install wind turbines, solar panels or solar systems, wood boilers, other types of biomass systems and other systems to produce renewable energy or renewable fuels.  Grants may fund up to 25 percent of the project costs and loans finance up to 75 percent of the total cost.  Projects combining loan and grant financing cannot exceed 75 percent of the total costs.  Projects must be located in an eligible rural area, which are areas other than cities with greater than 50,000 population. 

Don’t wait to apply!  Call the USDA Rural Development State Office at 715-345-7610 for more information to get started on your application.  Additional information on Rural Development programs is available at a local USDA Rural Development office or by visiting USDA’s web site at http://www.rurdev.usda.gov/wi

Posted Dec. 11, 2009