The USDA's Rural Energy for America Program (REAP) can help farmers lower the cost of solar installations. REAP offers grants and guaranteed loans to cover up to 75% of the cost of a solar system. In addition, farmers can claim a federal tax credit of up to 30% of the cost of the system.
For example, a farmer who installs a $30,000 solar system could receive a $15,000 grant from REAP, a $7,500 guaranteed loan, and a $9,000 tax credit. This would mean that the farmer would only have to pay $8,500 out of pocket for the system.
REAP grants are competitive, so farmers must submit an application to be considered. Applications are typically due in the spring.
REAP guaranteed loans are available to farmers who meet certain eligibility requirements. The loans have a maximum term of 40 years.
The federal solar tax credit is available to businesses that install solar systems. The credit is equal to 30% of the cost of the system, and it can be claimed over five years.
Farmers who are interested in learning more about REAP or the federal solar tax credit should contact their local USDA Rural Development office
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Categories: Michigan, Energy