The practical and popular story of rural energy improvements

Hi Neighbor, 

Rural business owners know how to make a dollar work harder than most. That’s why when rural business owners get the chance to save on energy costs, they take it. Ask anyone who’s used a Rural Energy for America Program (REAP) grant, and you’ll hear the same thing: it helped them cut costs, stay open, and invest cost savings in their business growth.

A new Brookings report confirms what those same rural business owners already know: REAP grants are reaching small businesses in every corner of the country, with right-sized support that reflects local needs and has been broadly popular for 17 years.  

The REAP program is a strong example of a federal program that’s working as intended, reaching rural communities across the country with practical, flexible support.

Since 2008, REAP has supported over 25,000 energy projects in every state — from solar panels on barn roofs to upgrades in warehouse refrigeration. More than half of those grants have been between $10,000 and $50,000, helping small rural businesses and farms that often struggle to secure traditional financing. And more than two-thirds of those grants have gone to districts currently represented by Republicans. This program has broad bipartisan appeal— it’s practical, popular, and built to meet the real needs of rural communities.

Right now, $911 million in REAP funds — covering more than 4,800 rural projects — is temporarily stalled but expected to resume under the current administration. These community-driven energy efforts are too important to pause. This funding must keep flowing to support the kinds of local economic benefits we’ve already seen, such as:  

Cameron and Garrett Duncan, who farm hay and raise sheep in Oregon’s high desert, where every decision revolves around water. With support from REAP, they upgraded their irrigation system to use less power and waste less water — saving 50 million gallons a season and thousands of dollars each summer. For the Duncans, this wasn’t just about cutting costs. It was about protecting their livelihood and making sure they’re ready for a drier future.

Or Dennis Terning, who runs a seed operation in Cokato, Minnesota, and installed solar panels with a REAP grant to cut the high energy costs of drying corn. That investment now powers up to 80% of the farm’s electricity needs and saves about $20,000 annually. “It’s a relief when you get a high bill, and you look at what the solar panels saved you,” he said. “You’re like, oh yeah, OK. I can dig that.” 

Or in rural Rochester, Indiana, Kevin Smith and his family are using a REAP grant and federal clean energy tax credits to bring solar to their popcorn farm – a third-generation operation that now produces over 3 million pounds of popcorn annually. With a $250,000 REAP grant and a 40% tax credit, the Smiths installed a solar array big enough to cover their grain elevator’s entire energy use — about $30,000 per year. 

Rural innovators across the country are putting REAP to work. In Pennsylvania, business-owner Vivian Abel transformed an old chicken house into a solar-powered hub for her Lancaster County bed-and-breakfast — cutting energy bills, supporting local tourism, and helping preserve her family’s farmstead. In West Virginia, Pastor Hurt led Lifeline Church of God’s solar installation, using the savings to grow community programs. And in Wisconsin, farmer Tony Schultz installed solar panels at Stoney Acres Farm, lowering costs while powering pizza nights, a brewery, and a thriving CSA.

When we say that rural communities are leading the way on clean energy and innovation, this is what we mean. The stories above are just a few of thousands — and we’re going to keep telling them. These dollars help power local businesses, cut costs, and strengthen rural economies. We’re committed to making sure that support continues to reach the people and places driving this transformation. 

Thank you for your time, support, and readiness. 

Resource Rural