Heads up, Bozeman Business Owners! REAP Grants Expire on Sept. 30th.

Are you curious about REAP? It's a grant and loan guarantee program with financial assistance to agricultural producers and rural small businesses for renewable energy systems or energy efficiency improvements.

Rural Small Businesses and agricultural producers are eligible to apply for installing solar panels and other renewable energy systems. Small businesses must be in an eligible rural area and meet the Small Business Administration size standards. Residential homeowners and property owners who lease/rent their properties for long-term residential purposes do not qualify. 

It's important to note that after September 30, 2023, businesses within the city limits of Bozeman will no longer qualify for the program due to Bozeman's loss of its rural designation after the 2020 census.

Currently, the program covers up to 50% of project costs due to increased funding from the Inflation Reduction Act. The maximum grant award is $1,500,000 for a fiscal year. Entities can apply for REAP funding more than once.

Installing a solar system means savings on operational costs for your business, which means higher profits or money you can invest back into your business. Even if you receive REAP funding, your business will still qualify for the Investment Tax Credit, which is 30% of the total cost. You could pay for up to 90% of the solar system with available incentives and savings.

With current equipment and labor costs and funding availability, we have been seeing solar system paybacks within 3-7 years. Most solar system components have warranties between 15-25 years, and most systems will produce energy for at least 25 years.

Finally, the grant aims to reduce operating costs for small businesses and agricultural producers. If you own a business that runs out of your home, you must be able to prove that more than half of the electricity used is consumed. The USDA typically requires 12 months of energy consumption data to show proof.