The USDA’s commitment to renewable energy in rural America boils down to two flagship initiatives—REAP (Rural Energy for America Program) and REPP (Rural Energy Pilot Program). Both programs are designed to expand clean energy access across the country’s most underserved communities but in very different ways.
Choosing the right one matters. It’s not just about securing funding—it’s about aligning with your long-term goals and who you serve, whether that’s your own operation or an entire community.
So let’s make it easy. Here’s a clear, side-by-side breakdown to help you understand what each program offers—and which one might be the best fit for your future.
The USDA REAP Program: Helping Farms and Rural Businesses Go Green
If you’re a farmer or run a small business in a rural area, REAP is built with you in mind. It’s designed to help you upgrade to cleaner, more energy-efficient systems
What Exactly Is REAP?
REAP supports agricultural producers and small rural businesses by helping them invest in energy efficiency improvements or renewable energy systems. Think solar panels on your farm shed, energy-efficient lighting in your processing unit, or a geothermal heating system.
Who All Are Eligible?
Agricultural producers and rural small businesses are the key players here. If that’s you, chances are you’re already eligible. You’ll just need to demonstrate that your operations are in a qualifying rural area. And be prepared to show how your project will reduce energy use or shift to renewables – that’s where the USDA leans in with support.
What Kind of Projects Qualify?
Here’s a quick look at the kinds of projects REAP is designed to support—both big and small:
- Solar, wind, geothermal, or biomass energy systems to help you generate your own clean power
- Energy-efficiency upgrades like improved insulation, LED lighting, or high-performance HVAC systems that bring down operating costs and reduce energy waste
How Much Funding Can You Get?
REAP offers grants that cover up to 50% of your project costs. For renewable energy systems, grants go up to $1 million. For energy efficiency projects, up to $500,000. Loan guarantees are also available. So no, you don’t have to shoulder the cost alone.
Exploring the Rural Energy Pilot Program (REPP)
Now let’s talk about the big picture. REPP is all about scaling impact. Instead of helping a single farm or business, it supports community-driven renewable energy projects that foster long-term resilience.
What Is REPP?
REPP is a USDA pilot program created to back larger, collaborative efforts in renewable energy. It’s ideal for towns, Tribes, and nonprofit-led initiatives that aim to transform energy use across entire communities.
Who Can Apply?
Rural Energy Pilot Program eligibility includes – local governments, Tribal entities, nonprofit organizations, and regional partnerships. If your vision spans more than just one facility—REPP might be your lane. It’s made for big thinkers and bold planners. If you’re dreaming of powering not just a building, but a neighborhood, a school, or an entire rural town
What Types of Projects Are Funded?
REPP supports initiatives like:
- Community-scale solar or wind power
- Battery storage systems
- Energy planning and feasibility studies
- Workforce training and capacity-building efforts
What’s the Grant Structure Like?
Projects can be funded up to $2 million with terms stretching over three years. REPP looks for clear planning, community benefit, and sustainability. It’s not just about clean energy… It’s about local impact!
REAP vs Rural Energy Pilot Program
Individual vs. Community Focus
REAP is your go-to if you’re an individual farmer or small rural business trying to cut energy costs and embrace renewables. It’s straightforward, focused, and designed to support your operation. REPP, however, looks at the bigger picture that is, it’s meant for the communities.
This means REAP is for those who want to make a difference in their own backyard, while REPP is about uplifting entire neighborhoods or regions.
Project Scope
REAP projects tend to be smaller in scale, eg:- solar on a barn roof or upgrading to LED lighting. They’re easier to manage and quicker to roll out.
REPP, on the other hand, is built for bold, transformative ideas, eg:- installing a solar grid for an entire town or launching a training program that builds long-term energy careers in the region.
How They’re Funded
REAP combines grants and loan guarantees, usually with cost-sharing involved. It’s structured to support smaller, efficient upgrades. REPP sticks to grant-only funding but offers a larger pot of up to $2 million per project. That makes it well-suited for bigger coalitions and long-term community investments that need sustained support.
Bottom Line
If you’re upgrading a facility, REAP fits. If you’re planning something with lasting ripple effects for your entire community, REPP gives you the tools to build it.
Choosing the Right Path
Think About Your Goals
Whether you’re aiming for a simple energy upgrade for your farm or a full-scale, community-wide transformation, defining your end goal will steer you in the right direction. If your aim is to reduce your farm’s electricity bill or modernize your small business’s HVAC system, REAP is likely your best bet. But if you’re building a solar microgrid to support your whole town, school, or multiple public facilities? REPP is calling your name and bringing a long-term impact with it.
Know Who You Are
Understanding your organization type matters. REAP is designed for individual producers and rural small businesses looking to optimize operations. Meanwhile, if you’re a Tribe, nonprofit, or municipality trying to drive larger-scale change, REPP aligns better with your mission and structure.
- Individual producer or rural small business? → REAP
- Tribe, nonprofit, or municipality? → REPP
Check Your Timeline & Readiness
Timing is everything. Are you ready to roll with your project right now? REAP offers a faster approval-to-implementation process—great for projects with clear plans and immediate needs. Still developing your concept, building coalitions, or seeking input from the community? REPP gives you the breathing room to plan thoughtfully and execute strategically.
Tips for a Stronger Application
Always Be Ready With Documentation
Don’t wait to gather the paperwork. For either program, you’ll need documentation like feasibility studies, quotes, technical assessments, and proof of eligibility.
Build a Solid Plan
Whether you’re submitting for REAP or REPP, clarity wins. Define your objectives, expected outcomes, and how your project will serve its beneficiaries.
Get the Right Help
You don’t have to figure this out on your own. Visit USDA’s dedicated REAP and REPP pages, or reach out to your local rural development office. They’re there to support you.
Conclusion: Let’s Talk About What You’re Building
There’s no one-size-fits-all when it comes to renewable energy funding. Your vision, your structure, your community—they all play a part in deciding which program makes the most sense.
Whether it’s installing solar panels on your farm or kickstarting a regional energy hub, your next step toward clean energy can start here.
And if all of this still feels a bit foggy? That’s where we come in.
At August Brown, we help rural businesses and communities navigate the USDA grant landscape with confidence. From sorting out eligibility to writing compelling applications, we’re here to guide you every step of the way.
Let’s build something better, together. Reach out to August Brown today.
FAQs
Q: What is the main difference between REAP and the Rural Energy Pilot Program?
A: REAP supports individual farms and rural businesses, while REPP backs large-scale, community-based projects.
Q: Who can apply for the USDA REAP program?
A: Agricultural producers and rural small businesses.
Q: Can nonprofits apply for the Rural Energy Pilot Program?
A: Yes. Nonprofits, along with local governments and Tribes, are key REPP applicants.
Q: What types of projects are funded under REAP?
A: Solar, wind, geothermal systems, and upgrades for energy efficiency.
Q: How much funding can I get through the Rural Energy Pilot Program?
A: Up to $2 million per project, with funding usually spanning three years.