IRA-Expanded USDA REAP Now Covers Standa…

The Rural Energy for America Program added standalone battery storage as an eligible technology in 2023, without requiring a solar pairing. Agricultural producers and rural small businesses can now claim 25–40% grants on LFP battery systems — a program that reaches an eligibility population the residential Section 25D credit never did.

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The IRA removal of the energy audit requirement for renewable energy and storage applications is the procedural change that made REAP actually usable for smaller projects. The prior energy audit requirement was a meaningful barrier for a farm adding a 10–15 kWh LFP system — added cost and a long lead time before you could even submit the main application. That barrier is gone now.

The eligibility distinction — agricultural producers and rural small businesses yes, residential rural homeowners no — is the one that catches people off guard. A working farm with 50%+ gross income from agricultural operations qualifies. A homeowner on a rural lot without agricultural income does not, even if they're well outside city limits. Worth verifying before putting time into an application.

The simplified application for systems under $200,000 without a required technical report is worth knowing about. For a farm adding a $4,000–8,000 LFP system, the full technical report pathway would be disproportionate to the project size. The simplified form with two competitive bids, a project narrative, and basic financials is manageable for someone who hasn't done federal grant applications before.

IRA-Expanded USDA REAP Now Covers Standalone Battery Storage — and Rural Builders Are Taking Notice