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Eligible projects fall into two categories. One use is to finance the installation of renewable energy systems, such as small and large wind turbines, solar, geothermal or biomass. Second, funds can be used for energy efficiency projects, including installing new electric motors that are more efficient in equipment, adding insulation and improving electrical or heating and cooling systems.
Restaurants, grocery stores, bakeries, greenhouses, cold storage businesses, ethanol plants, manufacturing facilities, as well as any other business that requires a large amount of energy to operate, may benefit from an energy-efficient upgrade that these funds could help finance.
Grants from Rural Development can cover up to 25 percent of the project costs. Minimum total project costs to qualify for grants are $6,000 for energy efficiency improvements and $10,000 for new renewable energy projects. The maximum energy efficiency grant is $250,000; $500,000 for renewable energy.
Guaranteed loans can be issued for up to 50 percent of the project costs. Minimum project costs to qualify for a guaranteed loan is $10,000 for both energy efficiency and renewable projects. The maximum guaranteed loan is $10 million. A combination grant and guaranteed loan can be requested for up to 50 percent of eligible project costs.
Costs incurred before submitting an application for both grants and loan guarantees are not eligible. In addition, funds are not available for residential use.
Information, applications, forms and other tools regarding the energy program can be found at www.energygrantiowa.com. Contact the USDA Rural Development State Office in Des Moines at (515) 284-4714 with questions.
The Renewable Energy Systems and Energy Efficiency Improvements Program was created as part of the 2002 Farm Bill to assist farmers, ranchers and rural small businesses develop renewable energy systems and make energy efficiency improvements to their operations.
