USDA – High Energy Cost Grant Program

Program Overview

Implementing Sector Federal
Category Financial Incentive
State Federal
Incentive Type Grant Program
Web Site http://www.rd.usda.gov/programs-services/high-energy-cost-grants
Administrator USDA Rural Utilities Service
Budget $10 million (2021 solicitation)
Start Date 2000
Eligible Renewable/Other Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Wind (Small), Hydroelectric (Small)
Eligible Efficiency Technologies Yes; specific technologies not identified
Applicable Sectors Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Tribal Government, Institutional
Incentive Amount $100,000-$3,000,000
Maximum Incentive $3 million
Installation Requirements Both grid-connected and off-grid renewable energy installations are eligible

Summary

Please note, the most recent application period for this program concluded on July 6, 2021. For updates on future application opportunities, refer to the program’s website.

The U.S. Department of Agriculture (USDA) has been administering a continuous grant program since 2000 to enhance energy generation, transmission, and distribution facilities in rural areas. To qualify, projects must be in communities where average home energy costs exceed the national average by at least 275%. Retail power providers serving rural communities, including non-profits (cooperatives and limited dividend or mutual associations), commercial firms, state and local government entities, and tribal governments, are eligible to apply. In the latest funding round, $7 million was allocated for eligible projects. Grants ranging from $100,000 to $3 million were available for various activities, such as:

  • Electric generation, transmission, and distribution infrastructure;
  • Natural gas or petroleum storage or distribution infrastructure;
  • Renewable energy facilities for on-grid/off-grid electric power generation, water or space heating, or process heating and power;
  • Backup or emergency power generation or energy storage systems;
  • Weatherization of residential and community buildings, or other energy efficiency or conservation initiatives.

 

While this grant program is open to various projects, including those not limited to renewable energy or energy efficiency measures, these types of projects are indeed eligible for funding.

Authorities

Name 7 CFR 1709

Contact

Address:
1400 Independence Avenue, SW Stop 1560, Room 5165-South
Washington, DC 20250-1560
Phone:
(202) 720-9545