October 15, 2024
One of our driving forces at JumpLights is the pursuit of success for our customers. It’s what motivated us to help District Farms, a local greenhouse lettuce grower, win a grant that covered 50% of their lighting upgrade. As a result, their operational costs have seen an improvement and their yield has increased significantly. In a perfect world, we’ll make sure every eligible customer can take advantage of this REAP grant. Read on to discover how.
Grants can provide a substantial financial boost for companies seeking to upgrade their equipment while prioritizing things like energy efficiency and eco-consciousness. One such grant is the USDA REAP grant (Rural Energy for America Program), which benefits many businesses in the agriculture sector. This includes organizations that use greenhouse and cannabis LED lighting equipment. Here’s what you need to know in order to secure your own REAP grant, as well as how we can help you reach that goal.
What is a USDA REAP Grant?
This grant aims to promote renewable energy as well as efficiency in rural areas. It’s meant to assist agricultural producers and other small businesses reduce energy costs by lending support to a variety of projects and solutions like solar panels, wind turbines, heating and cooling, and of course, lighting systems. Projects that have a heavy focus on greenhouse and cannabis LED lights are perfect candidates for this grant, because they align well with the program’s goals of reduced energy consumption and efficiency.
Do I Qualify? Should I Apply?
Wondering if your business qualifies? Let’s break down the requirements. Here are two big qualifiers:
- Are you an agricultural producer? This means you must obtain at least 50% of your gross income from agricultural operations.
- Are you a rural small business? This means you’re located in eligible rural areas and meet SBA size standards.
Projects seeking eligibility should be focused on renewable energy systems or energy efficiency improvements. For businesses using LED lights for growing, this would mean projects that involve the installation of high-efficiency LED lighting systems, upgrades to existing lighting infrastructure, or other energy-saving measures.
Consult USDA guidelines to determine your eligibility. If you qualify, we encourage you to apply (and we can help you in the process). For additional assistance, you can seek advice from USDA representatives themselves. They can provide crucial insights that can be of value when securing a grant.
Types of REAP Grants
Funds from the grant can be used for several purposes, including geothermal, wind generation, solar general, hydrogen, and more. Additionally, they can be used for the purchase of HVAC systems, insulation, refrigeration units, and lighting.
Energy Efficiency Grant Tiers
In the case of JumpLights and our partners, the most important type of REAP grant focuses on energy efficiency. In this area, there are three tiers available, based on project costs:
- Less than $80,000
- $80,00 to $200,000
- Over $200,000
It’s important to note that the highest tier (over $200,000) requires an external audit performed by specialists. Additionally, the grant cannot be more than 50% of the total cost of the eligible project.
How to Prepare
Research and Planning
Identify all the potential LED lighting projects that could benefit from this opportunity and align with its requirements and objectives. Gather all possible data from your current energy usage, and calculate the savings you would enjoy as a result of the grant.
Financial preparation
It’s time to prepare a budget for your project. Consider equipment and installation costs, as well as any additional expenses. It’s important to have a thorough understanding of the grant process and collect all the relevant documentation—financial statements, energy audits, and technical reports.
Building a Strong Application
It’s time to craft a compelling proposal. Be sure to clearly outline the objectives and benefits of your project and provide as much detail on financial projections and environmental impact assessments. Letters of support from experts, partners, and other stakeholders can significantly improve your chances for approval.
Partnering with Experts
LED lighting specialists, grant writers, and financial advisors who have experience with REAP grants are an invaluable resource in this process. Consult with them throughout the process to make sure you’re taking the proper steps to secure the grant.
Managing Timelines and Deadlines
It’s important to understand the timeline of the whole process. Stay on top of important deadlines and make sure all the required materials—documentation, data, and projections—are submitted on time.
How Can We Help?
We’ve already helped one of our valued partners secure their REAP grant, and we would love to work with you so you can receive the same funding. The experts here are committed to not only providing great LED grow light solutions, but helping other companies succeed while supporting a sustainable future. Contact us for more information and assistance.
