Farm renewable energy and efficiency financing

Build the investment case from measured energy demand

An efficient refrigeration system, irrigation pump or renewable-energy installation should be assessed against the farm’s existing consumption and realistic operating hours. Record equipment costs, installation, grid work, servicing and the electricity price used in the forecast. USDA’s Rural Energy for America Program addresses eligible agricultural energy projects through separate funding routes. NRCS also includes an on-farm energy initiative within EQIP. The project’s technical eligibility and any public assistance need to be checked before they are included in the financing plan.

Distinguish a finance offer from a grant application

Compare projected savings under lower output, higher maintenance costs and a delay in commissioning. At the time of review, USDA’s REAP grant page states that new grant applications are not being accepted, while guaranteed-loan applications may be submitted. An installer’s expectation of future support is therefore not a funding commitment. Ask the lender which savings assumptions it will recognize and how equipment performance warranties interact with loan payments. Retain enough cash to operate the farm if the new system does not immediately achieve its forecast efficiency.