Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
Get a Free QuoteUSDA REAP grants cover 25-50% of farm solar installation costs for Pennsylvania agricultural producers. Loan guarantees provide up to 75% financing. Stack with RISE PA and cover the majority of your system cost.
REAP Grant
25-50%
Of eligible project cost
Max Grant
$1M
Per renewable energy project
Loan Guarantee
Up to 75%
USDA backs commercial loans
Stack with RISE PA
~80%
Combined coverage possible
The Rural Energy for America Program (REAP), Section 9007 of the 2018 and 2023 Farm Bills, provides financial assistance to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. The program is administered by the USDA Rural Development agency through its Pennsylvania state office in Harrisburg.
REAP is unique because it was specifically designed to address energy costs as one of the largest operating expenses for American farms. According to USDA data, energy is the second-largest input cost for many PA farm operations after labor. A typical 200-cow dairy farm in Lancaster County may spend $40,000-$80,000 per year on electricity alone. REAP-funded solar systems can eliminate 60-100% of that cost.
REAP pays you after the project is complete and invoices are submitted. You must fund the project upfront — either with farm equity, a commercial loan, or a REAP-guaranteed loan. Many farms use the REAP loan guarantee to secure construction financing, then receive the grant reimbursement 6-12 months after project completion to pay down the loan principal.
Pennsylvania has one of the most agriculturally significant rural landscapes in the Northeast. The state's farms are large energy consumers with substantial unshaded roof space — the ideal profile for REAP-funded solar installations.
#1
Non-irrigated ag county in US
Lancaster County, PA leads the nation in non-irrigated crop production value
65%
US mushroom production
Pennsylvania produces nearly two-thirds of all US mushrooms — primarily Chester County
33,000+
PA farms
Pennsylvania has over 33,000 farms covering 7.3 million acres of farmland
$7.8B
PA farm market value
Pennsylvania agriculture generates $7.8 billion in sales annually
| Farm Type | Typical System | Annual Generation | REAP Grant Range |
|---|---|---|---|
| Dairy Farm (200 cow) | 75-150 kW | 90,000-180,000 kWh | $60,000-$150,000 |
| Poultry Farm (6 houses) | 100-200 kW | 120,000-240,000 kWh | $80,000-$200,000 |
| Mushroom Farm | 200-500 kW | 240,000-600,000 kWh | $150,000-$500,000 |
| Vegetable Greenhouse | 50-200 kW | 60,000-240,000 kWh | $40,000-$200,000 |
| Hog Operation (1,000 head) | 50-100 kW | 60,000-120,000 kWh | $40,000-$100,000 |
Grant ranges are estimates based on 25-50% coverage. Actual amounts depend on USDA scoring of energy audit results and competitive scoring within each funding round.
REAP eligibility is more straightforward than most federal grant programs. The two key categories are agricultural producers and rural small businesses.
Must derive at least 50% of gross income from ag operations in the current or one of the three prior tax years.
Located in a rural area (outside cities with 50,000+ population), ≤50 FTE employees, and gross annual revenue under $1 million.
USDA REAP applications are accepted on a rolling basis by the PA USDA Rural Development office, with periodic funding cutoff dates. Unlike RISE PA, there is no single hard deadline — but funding is awarded competitively within each scoring period. Here is the full application process:
Call the Pennsylvania USDA RD office in Harrisburg (717-237-2299) or your area office. An RD representative will confirm your eligibility, explain the current funding cycle, and guide you through documentation requirements.
Pro tip: Ask about the current scoring threshold — what $/kWh payback is needed to score competitively this cycle.
Projects over $20,000 require a technical report from a licensed professional engineer or certified energy auditor. The report must show baseline energy consumption, proposed system specifications, projected generation, and simple payback calculation.
Pro tip: Higher payback scores better. Farms with high electric bills (dairies, mushroom farms) tend to score very well.
Get at least two independent contractor bids. Bids must be itemized and dated within 90 days of application. USDA evaluates project costs for reasonableness.
Pro tip: Choose contractors with REAP experience — they know how to structure bids and what documentation USDA requires.
Complete the REAP application form with tax returns (3 years), proof of business entity, site control documentation, technical report, contractor bids, and signed contractor agreement. Submit through your USDA area office.
Pro tip: Submit early in the scoring period. Applications reviewed earlier often benefit from more discretion in the scoring process.
USDA scores applications on technical merit, financial viability of the project, and completeness of documentation. Expect 3-6 months from submission to award notice. Awards include a Conditional Commitment letter with specific requirements before funds are obligated.
Pro tip: Respond promptly to any USDA requests for additional information — delays can push you to the next funding cycle.
Complete the solar installation, receive utility interconnection approval, and submit all invoices, inspection records, and completion documentation to USDA. Reimbursement is processed within 30-60 days of complete submission.
Pro tip: Keep meticulous records throughout construction. USDA requires documentation for 100% of eligible costs.
Pennsylvania agricultural operations are uniquely positioned to stack three major programs: USDA REAP, RISE PA, and the Section 48E commercial ITC. When structured correctly, these programs can cover the large majority of a farm solar project cost.
Assumptions: REAP at 40%, RISE PA at 50% of post-REAP cost, 48E through PPA (not direct ownership). Actual results depend on grant scoring and structure. Does not include MACRS depreciation if farm owns system.
REAP and RISE PA are independent programs with different application processes, timelines, and reimbursement procedures. You will submit separate applications to USDA Rural Development (REAP) and PA DEP (RISE PA). Each program has its own eligibility review and scoring. Grants may arrive on different timelines. Work with an energy consultant experienced in both programs to coordinate your applications and financing structure.
USDA REAP (Rural Energy for America Program) is a federal grant and loan guarantee program administered by the USDA Rural Development agency. It provides grants covering 25-50% of the cost of renewable energy systems (solar, wind, biogas) and energy efficiency improvements for agricultural producers and rural small businesses. For PA farms, REAP is one of the best-funded rural energy programs available — particularly for operations in Lancaster, Chester, York, and Lebanon Counties.
REAP grants range from 25-50% of eligible project costs. The maximum grant is $1,000,000 for renewable energy projects and $500,000 for energy efficiency improvements. Loan guarantees can cover up to 75% of project cost with a maximum guarantee of $25,000,000. Most PA farm solar projects receive REAP grants in the $50,000-$250,000 range, covering 25-50% of a 50-250 kW system installation.
REAP eligibility requires: (1) Agricultural producers — any farmer or rancher who derives at least 50% of gross income from agricultural operations, or has derived at least 50% of gross income from ag operations in one of the three prior tax years. (2) Rural small businesses — businesses located in a rural area (generally outside cities of 50,000+ population) with 50 or fewer full-time employees and gross annual revenues under $1 million. Both must be for-profit and current on all federal obligations.
PA's strongest REAP candidates are dairy farms (high, consistent electric loads from milking equipment and refrigeration), poultry operations (significant lighting and heating loads), mushroom farms (controlled environment requires substantial electricity — PA produces 65% of all US mushrooms), greenhouse operations (year-round lighting and HVAC), and vegetable and livestock farms with refrigerated storage. Lancaster County is the #1 non-irrigated agricultural county in the US, making Central PA farms extremely competitive in REAP scoring.
Yes, but you must navigate three separate programs with different requirements. RISE PA (PA DEP) covers up to 50% of project cost for manufacturers and agricultural operations. REAP covers 25-50% for agricultural producers. These two grants can be stacked — you apply separately for each, and the combined grant may cover the majority of project cost. Section 48E (commercial ITC) is for the SYSTEM OWNER — if a third party owns the system under a PPA, they claim 48E and pass savings through lower rates. Stacking correctly requires careful coordination of application timelines.
REAP has multiple funding rounds throughout the year, administered by each state's USDA Rural Development office. Pennsylvania's USDA RD office in Harrisburg accepts applications on a rolling basis, with periodic funding cutoff dates announced in USDA Notice documents. Grants under $20,000 have simplified applications. Grants over $20,000 require a full technical report and energy audit. Plan for 3-6 months from application submission to award notification, then 1-2 years to project completion.
Core REAP documentation includes: IRS Schedule F (farm income) or business tax returns for 3 years, proof of legal entity and authorized representative, site control (deed or lease), a detailed energy audit or technical report from a licensed engineer, contractor bids (minimum two competitive bids), project map and site plan, utility bills for the past 12 months, and a completed Form RD 4280-1 (REAP application). The USDA RD office may request additional documentation during review.
In addition to direct grants, USDA REAP offers loan guarantees for up to 75% of project cost. This means USDA guarantees repayment of 75 cents of every dollar borrowed — dramatically reducing risk for commercial lenders and making it easier for farms to secure solar financing at favorable rates. A $500,000 farm solar project might use: $200,000 REAP grant (40%) + $225,000 REAP-guaranteed loan (45%) + $75,000 farm equity (15%). The loan guarantee does not come from USDA funds — it is a credit enhancement for private lenders.
PA DEP's $396M program covers 50% for manufacturers and ag operations. Round 3 deadline: April 15, 2026.
Full commercial solar guide including ITC adders, SRECs, MACRS depreciation, and financing options.
5-year accelerated depreciation + 20% bonus + Section 48 stacking. Last year for bonus depreciation.
Complete PA incentive landscape: SRECs, net metering, Act 129 rebates, RISE PA, and REAP stacking.
NuWatt has experience helping Pennsylvania farms navigate REAP and RISE PA simultaneously. We can connect you with USDA-approved energy auditors and help coordinate your grant applications.
Section 48E commercial ITC requires beginning construction before July 4, 2026. RISE PA Round 3 deadline is April 15, 2026.