- The USDA is investing $600 million in new clean energy funding for rural businesses and farms.
- More than 654 projects will benefit from the grants, reducing energy costs and spurring jobs.
- Allegheny Electric Cooperative meets 80% of its power needs to be carbon-free by 2026.
- The funding supports the clean energy transition in 39 states, Guam, and Puerto Rico.
The Biden-Harris Administration recently launched a historic clean energy initiative that aims to help costs decline and jobs become available throughout rural America. In this regard, U.S. Secretary of Agriculture Tom Vilsack announced more than $600 million in new funding for farmers and small business owners under the Rural Energy for America Program (REAP) and the Empowering Rural America (New ERA) program. It is an investment that supports 654 clean energy projects across 39 states, Guam, and Puerto Rico and has greatly reduced energy costs while stimulating job growth.
The new announced investments in rural clean energy are directly because of the impact from President Biden’s Inflation Reduction Act, showing an important milestone toward the fight against the climate crisis with a strengthened rural economy. More than 600 projects funded through the REAP and New ERA programs intend to help agricultural producers and small businesses build energy-saving systems, reduce costs, and switch over to clean energy sources.
Also read: DOE Invests $58 Million to Remove Carbon From the Atmosphere
Secretary Vilsack has highlighted the importance of this work, stating that Biden-Harris Administration investments will pay both farmers and business owners, but also will create jobs and lower the cost of energy in rural America. These grants will allow farmers to install renewable energy systems, including solar, wind, and geothermal resources, so they can save money and strengthen their business.
There are many standouts, such as a $20.5 million grant to Allegheny Electric Cooperative, which by 2026 would be meeting 80% of its power needs from carbon-free sources. The program is estimated to cut energy costs for 235,000 Pennsylvania and New Jersey households while annually eliminating nearly 100,000 tons of carbon pollution-powering the equivalent of 18,000 homes.
One of the target member-owned electric cooperatives is the New ERA program; they help cooperatives transition to clean energy systems providing reliable, low-cost power with fewer outages from wild weather conditions. In addition, USDA is announcing an extra $600 million in REAP funding that will be for incentives through March 2025 as farms and businesses move to renewable energy.
REAP Success Stories:
With the REAP program already benefiting so many small businesses and farms throughout the United States, there are more success stories to behold. For instance, Farmer Boy Ag Inc. in Pennsylvania just bagged almost $294,000 to install a solar system. This would save the company above $35,000 annually. On the other hand, Veddler Dairy Farm here in Michigan secured a grant of $813,000 to adopt solar energy, which is projected to help them save about $107,000 per year.
Also read: Greening Secures EPC Contract for 60MWac Solar Project in Indiana
There are other projects, like Glen Lehner Farms in Ohio, where the energy-saving grain drier has helped save the farm $30,000 annually, and Poteet Farms in Idaho, that will save over $56,000 a year with the new installation of solar energy systems.
Commitments by the Biden-Harris Administration to clean energy in rural America outline a pathway toward a more sustainable and resilient economy. To date, REAP, along with the New ERA programs, have positively helped farms and small businesses cut their energy costs and create new job opportunities. As these programs grow, communities in rural America will be at the forefront of leading the United States toward a cleaner, more prosperous energy future.
