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 QuoteAs of July 9, 2026, USDA is not accepting REAP grant applications while it updates the program regulations and prepares a new funding notice. Guaranteed-loan applications remain open for eligible Texas farms and rural small businesses. Use this guide to assess eligibility and prepare documentation, not to assume a grant award.
Paused
Grant Applications
6
Eligible Tech Categories
240k+
TX Farms Potentially Eligible
Open
Guaranteed Loans
Current status: REAP grants are paused and no quarterly grant window is open. Guaranteed loans remain available. Historical grant-stack examples below explain the former program design only; rerun every project after USDA publishes replacement rules and a new notice.
Test your eligibility, run the pre-pause cost-share scenarios against your own Texas project number, and read the guaranteed-loan terms that are still available today. Each figure recalculates from what you enter — treat it as a readiness tool for the day grants reopen, not as a live application you can submit now.
Check eligibility and model the numbers for when grants reopen — not a live-grant calculator.
REAP grants are paused; guaranteed loans remain open.
USDA is rewriting the REAP grant regulation and is not accepting grant applications — there are no live deadlines, and prior applicants will reapply under a forthcoming funding notice (NOFO). The grant figures below are planning scenarios for the reopening under the pre-pause framework, which may change. Guaranteed-loan terms in the loan panel are actionable today. Verified July 2026.
Applicant type
Choose an applicant type to see the binding eligibility question.
This is a self-check, not a determination. Confirm the exact parcel on USDA's property-eligibility map at eligibility.sc.egov.usda.gov before committing application effort.
25% cost share
Standard RES / EEI projects
27% of gross cost
Pre-pause framework — may change under the new NOFO.
50% cost share
Zero-GHG RES (standard solar), energy-community, EEI, or tribal
2% of gross cost
Pre-pause framework — may change under the new NOFO.
RES grants ran from a $2,500 minimum (25% share) / $5,000 minimum (50% share) up to a $1,000,000 project maximum, with a per-applicant cap of $1,500,000 per fiscal year across all REAP awards.
Your project's combined ceiling
$270,000
A REAP grant and guaranteed loan together cannot exceed 75% of eligible cost. With grants paused (grant = $0 today), a guaranteed loan alone can cover up to $270,000.
USDA would guarantee ~85% of that loan ($229,500).
Guaranteed-loan terms
These are planning estimates driven entirely by the values you enter — not a quote, an application, or a promise of funding. Program facts reflect USDA sources as of July 2026, when REAP grants are paused pending revised regulations and a new funding notice; the replacement rules may change cost shares, caps, and eligibility. Grant, ITC, and depreciation interactions depend on your tax posture and entity type. This is not tax advice — confirm the credit, the depreciable basis, and any grant-basis treatment with your CPA.
Turn this into a REAP-ready project file
We build the technical report, energy audit, system design, and state-tariff strategy your REAP application needs — and coordinate the tax stack with your CPA.
The Rural Energy for America Program (REAP) is a USDA Rural Development program that provides grants and loan guarantees to agricultural producers and rural small businesses for on-site renewable energy generation and energy efficiency improvements. Originally established in the 2002 Farm Bill, it was substantially expanded by the 2022 Inflation Reduction Act — most importantly raising the maximum grant cover from 25% to 50% of eligible project cost.
Renewable Energy Systems (RES)
New solar PV, wind, biomass, geothermal, and hydroelectric generation systems — plus paired battery storage.
Energy Efficiency Improvements (EEI)
HVAC upgrades, LED lighting, irrigation pump replacement, grain dryer modernization, insulation, refrigeration efficiency.
Two eligible applicant categories. Most Texas projects fall clearly into one or the other — the 50%-of-gross-income test for agricultural producers is the usual decision point.
Entities that derive at least 50% of gross income from agricultural operations. Texas has roughly 240,000 farms and ranches — the largest REAP-eligible producer base in the nation. Dairies, row crop operations, cattle ranches, cotton gins, grain drying operations, poultry houses, and irrigation districts all fit.
Typical TX Examples
Non-agricultural small businesses located in rural areas — generally defined as areas with population under 50,000. Must meet SBA size standards for their industry. Rural manufacturers, grocers, warehouses, hotels, cold storage, repair shops, and professional services all qualify when sited outside major metros.
Typical TX Examples
USDA maintains a property-eligibility map at eligibility.sc.egov.usda.gov. Enter any Texas address and it will confirm REAP eligibility instantly. Many TX suburbs and exurbs that feel non-rural actually qualify — the definition is more generous than most applicants assume. Check before ruling yourself out.
REAP funds six broad technology categories. Solar PV is the dominant application for Texas farms and rural businesses, but the program’s scope is wider than most applicants realize.
Rooftop, ground-mount, pole-mount, carport. Agrivoltaics configurations (solar + grazing or crops) are specifically allowed.
Eligible when paired with a qualifying renewable generation system. Must be dedicated to storing the renewable output.
Small wind turbines up to utility scale. West and North TX wind corridors are strong candidates.
Ground-source heat pumps for farm dwellings and rural commercial buildings. Direct-use geothermal for agriculture.
Dairy digesters, poultry litter-to-energy, crop residue biomass. Strong fit for TX dairies and poultry operations.
HVAC upgrades, LED lighting, irrigation pump upgrades, grain dryers, insulation, high-efficiency motors, refrigeration. Separate EEI grant category.
REAP’s rural framing means agrivoltaics configurations are not just allowed — they are often scored favorably. Continuing agricultural use under or around a solar array preserves rural character, maintains farm cash flow, and can demonstrate a strong community benefit narrative in the application.
Sheep grazing under elevated PV arrays is the most common agrivoltaic configuration — sheep manage vegetation (replacing mowing) while the land produces both lamb and electricity.
Native wildflowers and pollinator habitat under panels improve biodiversity, support adjacent pollinator-dependent crops, and score well on community-benefit criteria.
Shade-tolerant specialty crops (leafy greens, berries, certain vegetables) can be grown under elevated agrivoltaic arrays — still early-stage in TX but gaining research support.
This table documents how the prior REAP grant structure interacted with other incentives. USDA is not accepting grant applications. Treat every value as a scenario to rerun after the replacement rules and funding notice are published.
| Incentive | Type | Value | Who Administers |
|---|---|---|---|
| USDA REAP | Federal grant — paused | No applications accepted; former terms up to 50% | USDA Rural Development (TX State Office) |
| §48E ITC | Federal tax credit | 30% base; up to 50% with bonuses | IRS (Treasury) |
| MACRS 5-Yr + Bonus | Accelerated depreciation | 5-year MACRS + 100% first-year bonus (OBBBA) | IRS (Treasury) |
| TX Solar Property Tax Exemption | State exemption | 100% exemption of solar value | TX Comptroller / County Appraisal District |
| TCEQ NTIG (storage) | State grant (TERP) | Up to 50% of storage scope | TCEQ |
Historical Scenario Only: Texas Dairy Solar
Dairy profile: 200 kW rooftop/ground-mount solar at $1.80/W gross = $360,000 project. Former REAP 50% assumption = –$180,000 (not currently available). §48E 30% ITC on the remaining $180,000 basis (adjusted for grant per CPA guidance) ≈ –$54,000. MACRS 5-yr depreciation tax savings ≈ –$36,000 (cumulative, present value). TX property tax exemption protects value indefinitely.
Effective net cost: roughly $90,000 on a $360k gross project — about 25% out of pocket. Exact numbers depend on tax posture, grant-basis interaction with §48E, and whether any TX-level TCEQ grant adds to the stack. Consult your CPA.
USDA is not accepting REAP grant applications. A replacement funding notice is expected after revised regulations become effective; guaranteed-loan applications remain open. The steps below are preparation tasks, not an active grant-submission calendar.
Verify you meet either the agricultural-producer 50%-of-gross-income test or the rural-small-business SBA size standard. Confirm the site location on USDA’s rural eligibility map. If both tests pass, proceed.
For RES projects, a Technical Report prepared by a qualified engineer is required. For EEI projects, an Energy Audit is typically required. NuWatt supplies both for TX ag sites — this is the single most scrutinized element of the application.
Tax returns for the applicant entity (showing ag income share or SBA size), evidence of ability to fund the non-grant portion, and — if applying for a loan guarantee — commitment letter from a participating lender.
USDA conducts a categorical exclusion review under NEPA for most REAP projects. Ground-mount solar on farmland requires habitat, wetland, and historic-preservation documentation. NuWatt coordinates this with the engineering submission.
Do not submit or promise grant funding until USDA publishes revised regulations and a new funding notice. Keep the project package current so it can be adapted if grants reopen.
Guaranteed-loan applications remain open through USDA Rural Development. Confirm current terms with the Texas State Office and do not begin construction before required environmental review and lender conditions are cleared.
Non-ag rural businesses are often where the strongest REAP projects get overlooked. If your facility is outside a major metro, you likely qualify — and the economics can be excellent.
Small manufacturers with rooftop space and predictable daytime loads often hit 30–50% utility bill reduction with rooftop solar. REAP turns a 6-year payback into a 3-year payback.
Rural distribution centers and cold storage with high continuous kWh consumption are ideal REAP candidates. Solar + battery combinations address both kWh and peak-demand charges.
Small-town grocers, rural retail, and general stores with refrigeration loads are strong REAP candidates — grant reduces payback on solar + refrigeration efficiency bundles.
Hill Country wineries and rural craft breweries combine process-heat, refrigeration, and lighting loads — the EEI track often pairs with an RES solar project for stacked grants.
NuWatt designs, engineers, and builds REAP-eligible solar, storage, and efficiency projects across rural Texas. We provide the technical report, engineering, and environmental documentation that REAP applications require — and we coordinate with your CPA on the tax-credit + grant-basis interaction.
No REAP grant window is open. Prepare the technical file and monitor USDA; guaranteed-loan applications remain available.
Last verified: July 9, 2026
Sources: USDA Rural Development REAP program page and March 31, 2026 stakeholder announcement, 7 CFR Part 4280, USDA Property Eligibility Map, IRC §48E, §168 (MACRS)