|
USDA Funds GREENer Pastures |
|
|
|
By Patrick Baldwin, Senior Engineer
Clean Energy Center
John Strickland owns Dry Creek Gardens, a nursery in Washoe Valley. Struggling with rising energy costs, John wanted to significantly reduce or eliminate his monthly electricity usage with renewable energy. Thanks to the US Department of Agriculture’s Rural Energy for America Program (REAP) and Washoe Valley’s strong winds, John is now producing his power with a 2.6 kW wind turbine and will get credit from the power company for his surplus production.
 Even before John had heard of the USDA rural energy program, he was looking into wind power as a way to gain energy independence and possibly save some money for his business in the long run. After investigating the merits and the economics of wind turbines he was having a hard time justifying wind power because of the lengthy payback. Even with the rebate from NV Energy and the 30% federal tax credit, John was looking at a significant up-front investment.
When John learned about the USDA funding opportunity, he approached the Clean Energy Center, a renewable energy dealer and installer in Reno, and there wasn’t much time left. The deadline for REAP grant applications was July 31, 2009, which left about ten days to research the grant and get all the paperwork together. John quickly worked through all the necessary documents, while the Clean Energy Center helped complete the technical report which estimated the annual energy production and demonstrated the overall viability of the energy project.
With only one day to spare, the grant application was delivered to the USDA office, and six weeks later the USDA announced that John’s application had been accepted; one of only four in the entire state of Nevada. John was approved for 25% of his total project cost, bringing the payback schedule for the wind turbine to only 6 years. With NV Energy’s rebate program, the 30% federal tax credit and now the REAP grant, John only had to fund 21% of his wind energy project.
On May 26, 2009 the USDA first began accepting applications for REAP. It’s designed to assist farmers, ranchers and rural small businesses with financial aid for energy efficiency and renewable energy projects. The agriculture community was quick to respond in the summer of 2009, and the first round of funding helped launch 233 rural energy projects in 38 different states. In October, President Obama signed the 2010 agricultural appropriations bill into law increasing REAP’s annual funding from $23 million to nearly $100 million.
“I personally believe that investments in technology and innovation will be a win-win for rural business owners and the struggling economy,” said Sarah Adler, Nevada’s state director for USDA Rural Development. Now that they have the funding, the USDA is seeking out rural energy projects in order to get financial aid to the rural businesses that need it most
NV Energy is also keen to see more REAP funding supplement their wind energy rebate program. John Hargrove, NV Energy’s RenewableGenerations program manager, said he is looking to make 2010 a big year for small wind power. RenewableGenerations offers a generous rebate that correlates ($2.50/W up to 10 kW, and $1.50/W above 10 kW) to the nameplate rating of the wind turbine. For example, a wind turbine rated at 10 kW will return a $25,000 rebate check once the system is installed.
REAP is a competitive application process, and awardees can receive a grant, a guaranteed loan, or a combination of both. REAP grants will cover up to 25% of the eligible system cost, or up to $500,000 for a wind turbine and up to $250,000 for efficiency improvements. In addition, eligible projects can apply to receive a guaranteed loan of up to 80% of the total project cost.
In order to be considered an eligible project the location must be in an area with a population of 50,000 or less. Geographic eligibility can be determined by contacting the Nevada Rural Development office. Only farmers and ranchers who receive at least 50% of their gross annual income from agricultural operations, or rural small businesses who meet the SBA guidelines, can apply.
|
