Applications for the next round of USDA Rural Development grants are due March 31, 2021, according to the Minnesota Rural Development office.

Investments can used for renewable energy systems such as biomass, geothermal, hydropower and solar. Funds can also be used for energy audits and to make energy efficiency improvements to heating, ventilation and cooling systems, insulation, lighting and refrigeration.

Rural Development state director Brad Finstad says that $14.3 million has been invested to reduce energy costs for farmers and rural-based businesses and institutions in rural Minnesota.

“By reducing energy costs, renewable energy helps to create opportunities for improvement elsewhere, like creating jobs,” Finstad says.

USDA is investing in 25 rural small businesses and ag producers through the Rural Energy for America Program (REAP) Renewable Energy Systems & Energy Efficiency Improvement Grants and Guaranteed Loans.

For example:

In Brooten, USS Viceroy Solar LLC will use a $2.1 million loan to purchase and install a 1.4 megawatt solar array system that is estimated to produce 2.2 million kilowatt hours (kWh) per year, which is enough electricity to power 206 homes.

Newalta Dairy in Pipestone will use a $28,072 grant to purchase and install LED lighting throughout each of the farm’s dairy barns. The energy efficient lighting will save the farm $27,204 per year and will replace nearly 326,000 kWh per year, which is enough electricity to power 33 homes.

In Elbow Lake, family farm owner Jody Coleman will use a $125,000 grant to purchase and install a new grain dryer that will save the farm $227,267 per year in energy costs and will replace 5.1 million kWh per year, which is enough electricity to power 473 homes.

Southern Minnesota Beet Sugar Cooperative will use a $114,071 grant to purchase and install a juice purification system for more efficient sugar beet processing in Renville. This energy efficient improvement will save the coop $3.6 million per year and will replace 224.8 million kWh per year, which is enough electricity to power nearly 21,000 homes.

The deadline for the next round of applications is March 31, 2021. Interested parties should contact their local Minnesota area office for information about additional funding, application procedures and eligibility details.

Visit rd.usda.gov/onerdguarantee to learn more about how the REAP Guaranteed Loan Program will be streamlined under the OneRD Guarantee Loan Initiative.

Source: USDA Rural Development, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all of its subsidiaries are not responsible for any of the content contained in this information asset.