4 minute read
North American Clean Energy March/April 2024
Keep REAP Off the Chopping Block
by Fortunat Mueller, P.E.
The Rural Energy for America Program (REAP) is in danger, despite it providing key resources that support communities and the climate. Since 2008, the United States Department of Agriculture (USDA) has provided guaranteed loan financing and grant funding to rural small businesses to invest in renewable energy systems or make energy efficiency improvements through REAP, which has been traditionally funded through the Farm Bill. In 2022, thanks to the Inflation Reduction Act (IRA), REAP received $2 billion for grants, providing additional funding that allowed eligible applicants to receive up to 50 percent of renewable energy project costs. Between REAP’s grant opportunities, the 30 percent federal tax credit from the IRA, and other incentives, many rural business owners will only have to pay a small fraction of the overall cost of installing solar. However, with the Farm Bill up for renewal, members of Congress are threatening to use the 2023 Farm Bill reauthorization to revoke funding for programs like REAP that deliver real, tangible economic benefits to farmers. This program, critical to our energy transition, cannot be defunded or discontinued.
REAP funds the transition to renewable energy
REAP has funded over $10 billion in projects for farmers and rural small businesses. By providing access to renewable energy to communities that may not have been able to do so without REAP grants, this funding bolsters solar equity – as it includes more people in the clean energy transition. These projects have also reduced recipients’ carbon emissions that contribute to climate pollution, while increasing their resilience to the impacts of climate change. By lowering costs, especially up-front costs, REAP ultimately accelerates our clean energy transition.
REAP helps rural communities
This funding directly impacts the communities these projects serve. Such grants are a vital funding source to continue to support rural environments, communities, and economies. Clean energy, notably, has a lower cost than traditional fossil-based energy sources, affording recipients the ability to reinvest the savings difference into other aspects of their businesses or the communities they serve.
REAP funding helped shore up the future of Green Valle Farm in North Newburgh, ME. The family-owned farm has been around since the mid 1800s, and has seen the impact of changing weather patterns and the rising costs of energy necessary to power the farm. Green Valle Farm sought a way to lessen their electric costs to ensure the farm’s economic viability for the years to come; through REAP grants, Green Valle Farm was able to do just that. They were able to access funding from REAP, making their onsite solar installation a much more attainable investment that would, ultimately, pay for itself through energy cost-saving. The benefits of solar are clear for Green Valle Farm; with a reduction of REAP funding, other farmers would not be able to do the same.
REAP helps to combat climate change
There is no question that our climate is in crisis. There is also no question that renewable energy sources produce little to no greenhouse gas emissions, and their rapid proliferation subsequently decreases the use of harmful fossil fuels that harm our Earth. With alarming temperature increases, rising sea levels, and more frequent extreme weather events, the climate crisis is inching closer to a point of no return. Rural areas are especially vulnerable to the effects of climate change, which underscores the importance of taking direct steps to mitigating its impact on these communities.
Action is not optional, and we must have policies in place that ensure we will maintain a livable planet. REAP funding is just one step that can be taken to increase renewable energy to decarbonize our current energy infrastructure to combat climate damage – but it’s an important solution that provides equity and access to rural communities in our energy transition.
REAP grants have helped many businesses glean the benefits of renewable energy. They have made renewable energy and other energy efficiency projects more accessible and affordable to rural communities, all while providing tangible economic and environmental benefits. We cannot afford to reduce, let alone cut such funding completely. We cannot move backward when it comes to empowering solar equity. We must invest more in these communities; the Farm Bill and REAP are the paths to do so.
Fortunat Mueller, P.E. is the President and Co-founder of ReVision Energy, a missiondriven, employeeowned solar company operating in Northern New England.
