Opportunities for Renewable Energy
in Rural Communities
Energizing the U.S. Economy: Rural America at the
Epicenter of America’s Future
October 29, 2015
Dr. Venus Welch-White
Outreach Coordinator
venus.welchwhite@wdc.usda.gov
David Thigpen
North Carolina Energy Coordinator
david.thigpen@nc.usda.gov
Rural Business-Cooperative Service
Rural Development Mission Area
Funding Streams
Program Areas
Program
Areas
Guaranteed
Loans
Direct
Loans
Rural Development
Programs
Grants
Direct
Payments
3
The Electric Program
Renewable Energy
 Loans for eligible Renewable technologies include: Wind, Biomass,
Solar and Geothermal
a)
Commercially available technology
b)
The funds for improving electric service to rural area
residents
 Loans are not limited to Rural Electric Cooperatives
Assistance to High Energy Cost
Rural Communities
Section 19 of the Rural Electrification Act of 1936, as amended (7 U.S.C.
918a) authorizes three programs to help rural areas challenged by high cost
energy costs and lack of adequate energy infrastructure:



USDA Rural Development High Energy Cost Grants and Loans;
Denali Commission High Energy Cost Grants and Loans; and
State Bulk Fuel Revolving Fund Grants
 No waiting in line behind traditional Fossil Fuel Projects
4
Energy Programs

Loan guarantees and grants

Finance renewable energy systems (solar, wind,
digesters) and energy efficient systems

Biorefinery Assistance Program

Payment programs
–
–
assist companies that replace use of fossil fuels with renewable
biomass
encourage use of biomass other than cornstarch
5
Energy Audit & Renewable Energy Development
Assistance Grant
Funding provided to perform technical assistance to conduct and
promote:
1. Energy Audits (EA)
2. Renewable Energy Development Assistance (REDA)
Beneficiaries of assistance are rural small businesses, farmers and
ranchers
Eligible Applicants
 Unit of State, Tribal, or Local Government
 Instrumentality of State, Tribal or Local Government
 Land Grant College, University, or other Institution of Higher Education
 Rural Electric Cooperative
 Public Power Entity
 A Resource Conservation and Development (RC&D) Council
Definitions
Energy Audit
A comprehensive report prepared by an Energy
Auditor (or an individual supervised by an Energy Auditor) that
documents current energy usage, recommended
improvements, energy savings and payback
Renewable Energy Site Assessment
A report to an Agricultural Producer or Rural Small
Business providing information regarding and
recommendations for the use of Commercially
Available Renewable Energy Technologies in its
operation.
Renewable Energy Development
Assistance
Assistance provided to Agricultural
Producers and Rural Small Businesses to become
more energy efficient and to use Renewable
Energy technologies and resources.
• Renewable Energy Site Assessment and/or
• Renewable Energy Technical Assistance.
Renewable Energy Technical
Assistance
Assistance provided an Agricultural Producer or
Rural Small Business on how to use renewable
energy technologies and resources in their specific
operation.
REAP EA/REDA Grant Assistance
Maximum Grant Request is $100,000
 Matching Funds are not required, however
commitment of funds is a scoring criteria.
 If Application is for Energy Audits, the grantee
is required to have the Agricultural Producer
or Rural Small Business pay for at least 25%
of the Energy Audit cost.
Beneficiaries of EA/REDA Assistance
Agricultural Producer
Rural Small Business
• Individual or entity that receives 51
percent or more of their gross income
from production of agricultural products
•
– crops, livestock, aquaculture, forestry operations, nurseries,
dairies
For-profit small business
(as defined by the Small Business Administration (SBA))
•
Rural area or non-metro community of
< 50,000
Example # 1
A State Department of Energy receives an EA/REDA grant to
conduct energy audits Statewide for rural small businesses
and ag producers, covering 75% of the energy audit cost
11
Example # 2
A University receives an EA/REDA grant to work with a
group of agricultural producers to assess utilizing a
crop residue for renewable energy.
12
Example # 3
A public power utility district receives an EA/REDA grant to
set up an energy audit program providing 75% of the cost of
energy audits to rural small businesses and ag producers.
13
Rural Energy for America Program
Grants and Loans
Eligible Applicants and Beneficiaries rural small businesses, farmers and ranchers
REAP Grant Assistance: Up to 25% of Eligible Project Costs
Renewable
Energy Systems
Minimum Grant Request
Maximum Grant Request
Energy Efficiency Improvements
$2,500 (total costs > $10,000)
Minimum Grant Request
$1,500 (total costs > $6,000)
$500,000 (total costs > $2 million)
Maximum Grant Request
$250,000 (total costs > $1 million)
REAP Guaranteed Loan Assistance: Up to 75% of Eligible Project Costs
Minimum Loan Amount
$5,000 (total costs > $6,667)
Maximum Loan Amount
$25 million (total costs > $33.4 million)
Details
•
•
•
Terms are negotiated between the lender and borrower.
Fees, appraisals, equity & collateral requirements apply.
USDA guarantees a commercial loan; applicant must have a willing lender
Improve Profits for Your Rural Small Business,
Farm or Ranch with REAP
Energy Efficiency
Renewable Energy
Lighting
Solar
Heating
Wind
Cooling
Small Hydroelectric
Ventilation
Anaerobic Digesters
Fans
Biomass
Automated Controls
Geothermal
Insulation
Wave/Ocean Power
The technology must be commercially available. Research and development projects do not qualify.
Total Project Awards Per Technology Since Beginning of REAP
TECHNOLOGY
WIND
SOLAR
HYDROELECTRIC/HYDROPOWER
HYBRID
GEOTHERMAL
FLEXIBLE FUEL PUMP
FEASIBILITY STUDY
ENERGY EFFICIENCY
EA/REDA
BIOMASS
TOTAL
PROJECTS
598
1,910
29
37
283
98
198
6,480
85
471
10,187
REAP Obligations by Technology 2003-2014
REAP Obligations by Technology 2003-2014
REAP Obligations by Technology 2003-2014
REAP Obligations by Technology 2003-2014
Technical diversity for REAP RES/EEI (FY15):
‐For Grants:
• Energy Efficiency Improvements – 39%
• Solar – 54.5%
• Biomass – 4.5% (Includes Digesters)
• Wind – 1.5%
‐For Guaranteed Loans:
• 39 Solar
• 5 Biomass (includes 1 Digester)
Veterinary Hospital (Littlestown Veterinary Hospital in PA)
Rooftop solar panels
• $148,050 Total Cost
• $ 20,000 REAP Grant
• $128,050 Applicant Funds
30-40% reduction in operating expenses
Renewable Energy
Renewable Energy
Grocery Store (Mahomet IGA, IL)
Geothermal heat, energy efficient coolers & lighting
• $198,600 Total Cost
• $49,650 REAP Grant
• $148,950 Commercial Loan
40% reduction in energy costs
Renewable Energy
Small Energy Company & Dairy
Farmers (Farm Power Tillamook, OR)
1 MW Anaerobic digester
• $4.15 Million Total Cost
• $100,000 REAP Grant
• $2.65 Million REAP Guarantee
Powers an equivalent of 700 homes/year
Rural Business-Cooperative Service
Energy Programs
Renewable Energy
Rural Auto Repair Shop
11 kW micro-hydropower turbine
51% reduction in energy costs
USDA Rural Development - the leading advocate for rural America at the federal level.
Progress Solar, LLC (Bunn
Solar)
4.5 MW Photovoltaic Solar System
in Franklin County, NC
$15 Million Total Project Costs
$3.4 Million REAP Guaranteed Loan
$11.6 Equity Investment
http://o2energies.com/project/bunn_solar
Benefits of Renewable Energy in NC
• Most of the solar projects in NC have been completed in rural areas and within
these counties the facilities help add a tremendous amount of tax base to the
county, while asking for no services.
–
For a 30 acre parcel in most counties the annual real estate tax would have been ~$500 or
less. While there is an 80% tax abatement on the solar equipment in NC, the resulting tax
bill for a 5 MW facility will be ~$22,000 to $25,000….plus the real estate tax that will
continue to be paid.
• Long term power infrastructure.
– The addition of solar arrays scattered across the state have created long term power
resources that will help stabilize the long term power rates in the state. The operational
costs of the system are relatively small, so once the capital is expended to build the facilities
you can often lock in (fix) the long term prices per kwh to the buyer. In NC you can only sale
power to a regulated utility buyer so this has a limiting impact. However, long term it should
allow the utility companies to maintain a supply of cheap, renewable power.
• Land within solar arrays can still be used to graze live stock …..some NC farmers
are taking advantage of this opportunity (Sunray Farms). They have a contract with
Whole Foods to sale sheep that were raised within the fenced area of solar arrays.