For many agricultural producers and rural small businesses in Iowa, the USDA Rural Energy for America Program (REAP) is one of the most powerful tools to make solar affordable. This grant can cover up to 25% of eligible project costs, significantly lowering the barrier to entry for commercial solar. But how do you know if your business qualifies? Use this step-by-step checklist to find out.
Step 1: Confirm You’re an Eligible Applicant
USDA REAP is designed for:
- Agricultural producers: Farmers and ranchers, including those with at least 50% of gross income coming from agricultural operations.
- Rural small businesses: Any business located in an eligible rural area as defined by the USDA. This includes many towns and communities across Iowa outside major metropolitan centers.
You can quickly check eligibility for your address using the USDA’s online Rural Eligibility Map.
Step 2: Verify Project Type
The program supports renewable energy systems (like solar PV) and energy efficiency improvements. To qualify, your project must be designed for commercial or agricultural use — residential installations do not apply.
Step 3: Review Project Size & Cost
There are minimum and maximum funding levels:
- Grants: Cover up to 25% of total project costs.
- Loans: Can be combined with grants and cover up to 75% of costs.
- Total eligible project size: From $10,000 to $25 million.
This means everything from a 20 kW farm system to a 1 MW industrial project can potentially qualify.
Step 4: Prepare Documentation
Applicants must submit detailed project information, including:
- Technical report or proposal from a qualified solar installer
- Financial statements and tax returns (to demonstrate business size and stability)
- Description of energy savings or renewable output expected
- Proof of location and business type
A knowledgeable installer can typically supply much of this information as part of the proposal process.
Step 5: Apply by the Deadline
USDA REAP grant applications are accepted in multiple cycles each year. Deadlines vary, and funding is competitive. Starting early with a qualified partner increases your chances of success.
Step 6: Work With an Experienced Partner
Because REAP applications involve both technical and financial documentation, most Iowa businesses choose to apply with the help of a solar installer familiar with the process. Experienced partners can streamline paperwork and ensure compliance with USDA requirements.
Bottom Line
If your farm or rural business in Iowa is considering solar, the USDA REAP grant is a game-changer — covering up to a quarter of your project cost and stacking with federal tax credits and depreciation benefits. Eligibility depends on your location, business type, and documentation, but with the right guidance the process is straightforward.
👉 Next Step: Contact a commercial solar installer experienced in USDA REAP applications to see if your project qualifies.
