Solar Renewable Energy: What are REAP Grants and Net Metering
And how do they benefit Businesses in Lancaster County
Lancaster County, Pennsylvania, although difficult to believe for outsiders, is more than just rich agricultural heritage and picturesque landscapes; it’s also a hub for all types and sizes of innovative businesses that happen to be intermingled among farms.
Unfortunately, many of these businesses are unaware of programs like the USDA’s Rural Energy for America Program (REAP) and Pennsylvania’s net metering laws. MVE is here to help! With a little education and a modest amount of paperwork, businesses all over Pennsylvania can unlock significant financial and environmental benefits to embrace solar renewable energy solutions.
The REAP Grant: A Golden Opportunity
The USDA’s REAP grant offers financial assistance to agricultural producers and rural small businesses for implementing renewable energy systems or energy efficiency upgrades. This initiative is tailor-made for areas such like Lancaster County for many reasons:
- Agricultural Backbone: Lancaster County boasts one of the highest concentrations of farms in Pennsylvania. With over 5,100 farms, many of which generate over 50% of their income from agriculture, the REAP program directly supports their energy needs. For example, a dairy farm could install solar panels to offset rising energy costs.
- Rural Small Business Presence: Beyond agriculture, the county’s rural small businesses, from food processors to industrial warehouses, thrive in areas with populations under 50,000, making them eligible for a REAP grant. These businesses can access funding to transition to renewable energy, reducing operational costs and increasing resilience.
- Accessible Funding: The REAP grant provides for up to 50% of eligible project costs and loan guarantees for up to 75%, which allows many Lancaster County businesses to undertake projects with minimal upfront investment. When factoring in a REAP grant and tax credits to a project proforma, we can often show a 3 to 5 year payback, with some projects forecasting a payback of less than 2 years.
Net Metering in Pennsylvania: Invest in Solar and Earn Passive Income
If a business chooses to install a solar array, net metering laws in Pennsylvania allow a business or farm to sell any excess electricity generated back to the utility grid. This will result in a yearly check from the utility company for purchasing the power.
Why It Matters to Farms and Businesses in and Around Lancaster County:
- Offset Costs and Generate Revenue: Many Lancaster County farms and businesses have large roofs or open land ideal for solar installations. Excess energy produced during peak sunlight hours can be sold back to the grid, turning their energy investment into a revenue-generating asset.
- Encourages Optimal System Sizing: With net metering, businesses don’t need to fear overproducing energy. They can invest in larger systems that meet their peak energy needs while recouping costs during low usage periods.
- Supports Sustainable Practices: Selling back renewable energy contributes to the local grid’s sustainability, benefiting the broader community and aligning with Lancaster County’s commitment to environmental stewardship.
Why Act Now?
The combination of REAP grants and Pennsylvania’s favorable net metering policies creates a unique opportunity for Lancaster County manufacturing and industrial businesses to adopt renewable energy. Here’s why you should act:
- Energy Savings: By installing renewable energy systems, businesses can significantly reduce or even eliminate utility bills.
- Enhanced Resilience: Renewable energy systems provide a buffer against fluctuating energy costs.
- Environmental Impact: Transitioning to clean energy reduces carbon footprints, supporting Lancaster County’s natural beauty and business sustainability goals.
- Incentives Availability: REAP grants are competitive and awarded year-round, but funding is limited. Applying sooner ensures a better chance of securing these funds.
Increased Funding
The passage of the Inflation Reduction Act in August 2022 allocated over $2 billion to REAP, substantially increasing the resources available for renewable energy systems and energy efficiency improvement grants through 2031.
Get in touch with the MVE Group, Pennsylvania’s “go to” solar energy solutions company, to discuss how we can help you obtain a REAP grant and provide pricing for your ground mount or roof top solar array today!
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