USDA Energy Grant

Grants Available:
The United States Department of Agriculture is providing up to $22.8 – $75 million in grant funding to agricultural producers and small rural business owners interested in improving their energy efficiency or investing in renewable resource technology. The nationwide program, set up as part of the Farm Security and Rural Investment Act of 2002, is available to businesses in populations of 50,000 or less and to farmers and ranchers. For more information, view the following:


Who & What Projects Are Eligible?
Farmers, ranchers, irrigators and rural businesses (communities of less than 50,000 population). Eligible projects may include:

  • Energy Efficiency Improvements to the business (HVAC systems, insulation, refrigeration, lighting, irrigation systems, pumping systems, air systems, motor systems, etc.)
  • Renewable Energy Systems providing energy derived from wind, solar, biomass, biogas, or geothermal source or hydrogen derived from biomass or water using wind, solar, or geothermal energy sources.


What Grant Amount Could I Receive:
Subject to final rules, grants for up to 25 percent of project costs may be available with a minimum of $2,500 and maximum of $250,000 for energy improvements and maximum of $500,000 for renewable projects.

What Do I Need To Do:
To prepare for the application period, interested farmers, ranchers, irrigators, and businesses should:

    • Visit with your local Rural Development Business Specialist about your proposed project.
    • Work with your local utility, extension educator and vendor to determine the type of energy improvement or project to be considered.
      • For energy efficiency improvements, have your local or regional utility complete an energy assessment or audit for your project. For renewable energy projects, work directly with your specialist for details appropriate for renewable energy technology.
      • Obtain approximate costs from a vendor for your proposed project.


The final application packet will be simplified by completing these two items. Stay in touch with your Rural Development Business Specialist and obtain an application packet as soon as funds are available. For renewable energy projects, work directly with your specialist for details appropriate for renewable energy technology.

These grants are a good opportunity for businesses interested in energy efficiency improvements to their facilities or renewable energy projects. Farmers, ranchers, and irrigators considering renewable or energy efficiency projects, irrigation system energy improvements, methane digesters for livestock waste, grain handling systems, wind turbines, solar systems, biomass systems, etc. should look into the project.

For contact information, please view: