REAP Grants Awarded in Clayton County
Since 2022, The Clayton County Energy District (CCED) has closely watched the progression of the Rural Energy for America Program (REAP) grants. At that time the funding allocation was increased from offering dollars for 25% of project costs to 50% of project costs. Following this opportunity, the CCED immediately began working with our contractor network to spread the word of this change. Local contractors had access to business owners already looking to lower their energy costs, but as they shared the opportunity for significant cost reductions more businesses began applying.
REAP grant funding increase = more clean energy installations = lower greenhouse gas emissions & energy burden + business for local contractors = stronger NEIA economy!
Last month the U.S. Department of Agriculture (USDA) announced the latest round of REAP grant recipients in Iowa. The state awards for winter 2024 totaled over 18 million dollars in grant funding for 195 farmers and rural small businesses! Projects included both efficiency and clean energy upgrades. The REAP application, approval, and award process typically takes 18-24 months from start to finish, so these recipients likely started the process in 2022.
Clayton County businesses received $967,141 of the $18 million in funding. The projects included 1 efficiency upgrade and 8 solar projects providing over $155,000 in energy savings per year. Over the 25 year lifespan of a solar system, that retains nearly $4 million in our local communities. Additionally, these businesses had the opportunity to apply for an Inflation Reduction Act (IRA) tax credit. If filed, these credits would cover an additional 30% of the upgrade cost or $580,285. When used together, the REAP and IRA opportunities reduce out of pocket expenses to $386,856. The energy cost savings provided by these programs mean grant recipients have, on average, less than a 3 year payoff period.
The CCED and the Clean Energy Districts of Iowa (CEDI) network has recently dedicated resources to further expand access to REAP grants in Iowa. For example, CEDI offers free REAP grant coaching in several Iowa counties, including Clayton. REAP coach Steve Hopkins will explain the application process, explore potential upgrades on site, coordinate audits, and help with the application itself. CEDI will even cover 75% of audit costs up to $2,000! The latest round of awards provides concrete evidence of the impact this program has on our environment and our local economy. Use the link below to sign up for a coaching session and join the list of grant recipients who lowered their energy costs through clean energy technology.