The United States Department of Agriculture (USDA) runs the Rural Energy for America Program (REAP) which enables farms and rural based businesses ‘right size’ their energy systems. It also helps with installation costs for new technologies to be implemented that focus on using renewable energy and energy efficiency projects.

REAP is part of a much wider Rural Development (RD) plan initiated by President Obama in 2009. REAP funds energy projects that install energy efficient lighting, upgrade refrigeration systems, improve insulation, duct work, windows, and other building upgrades, lower heating and cooling costs with heating, ventilation, and air conditioning upgrades, install solar panels or wind turbines, purchase anaerobic digesters and establish other renewable energy systems including geothermal or hydropower and converts biomass to energy.

46 million people, or about 15% of the population lives in rural America so it plays a vital role in producing food and other goods for the national economy.

In 2016 REAP provided investment for nearly 2,000 agricultural producers and rural small businesses to encourage energy independence for America’s small towns using the natural resources that abound in such areas. These projects provide energy to over 130,000 homes.

A recent $14 million REAP loan guarantee to North Carolina-based O₂ Energies is now producing enough solar energy to power 20% of all the homes in Mount Airy. The REAP loan guarantee provided to North Carolina’s Surrey Bank and Trust gave the bank the confidence to try something new that has benefited the entire community, creating jobs and encouraging investment at a time when it was needed the most.

Today, USDA Rural Development’s investment portfolio is almost $216 billion; roughly equal to that of the nation’s 14th largest bank.

In 2016 Agriculture Secretary Tom Vilsack said “Helping thousands of rural small businesses, farmers and ranchers shift away from fossil-based energy by installing renewable energy systems and energy efficiency solutions has been one of the most important components of USDA’s climate mitigation investments.”

Investments in rural renewable energy projects have saved more than 10.4 billion kWh – enough energy to power more than 959,000 American homes every year. More than $38 billion has been invested in electric loans and more than $1 billion for smart grid technologies since 2009, helping build more than 185,000 miles of transmission and distribution lines that serve nearly 5 million rural customers annually and helped 1.1 million rural residents buy homes and has funded nearly 7,000 community facilities such as schools, public safety and health care facilities.

Cornfield & Partners can help you navigate investing in the rural American renewable energy and energy efficiency sector in 2017 as well as provide you with additional investment and market opportunities, contact Cornfield & Partners at info@cornfieldpartners.com today or call us on +44 (0) 20 7692 0873.

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