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Frequently Asked Questions

Grain Drying

Question:

Can we use this grant to help finance the building of a new aerated grain drying bin (with perforated floor and fans). This improvement would reduce the cost of LP drying.

Answer:

Yes, it is an eligible technology, but to be eligible, the new grain drying system would need to be a replacement for an existing grain drying system on the farm. We need an existing baseline of energy costs to compare to proposed energy costs.

The purchase and installation cost of the grain drying system, not the bin, is an eligible cost to finance. Costs need to be clearly defined to separate the bin costs from the grain drying system costs.

Question:

A farmer wants to convert an existing grain storage bin into a grain drying bin by installing grain drying equipment. It is an addition to the farming operation (grain drying equipment) that had not been there previously. Is this OK?

Answer:

No, the purpose of the energy efficiency improvement program is for replacement of inefficient equipment.

Question:

What equipment can be included in a grant beyond just the dryer itself?

Answer:

Any equipment that is permanently attached and is required for the entire system to operate can be included.

Question:

When do farmers get paid?

Answer:

Payment is made upon completion of the grain drying system. Work can begin right after the application package is received by the USDA.

Question:

Can we promise the farmer that he will win the grant?

Answer:

NO!!! The grants are awarded competitively. Since we do not know who will compete and how strong a proposal he will make, we do not know who will be awarded a grant.

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Question:

How much money is available?

Answer:

Over $90,000,000 will be awarded for either a grant, or a loan, or a combination of the two. 50% more than was awarded last year (2009). We anticipate much greater competition this year. Less money will be spent on large projects than in past years.

Question:

When will farmers find out if they won the grant?

Answer:

It depends on the type of grant applied for. In 2008 & 2009, they could have applied for a Grant/Loan combo and found out in two weeks. The grant-only applications found out in September or October if they won.

Windmills

Question:

Can I apply for more than one grant or rebate and still qualify for the REAP program?

Answer:

Yes, you're highly encouraged to apply for not only a REAP grant but also for a state grant and or any utility rebates available in your area.

Question:

Can I put the windmill on set aside land or must it be on the acreage that I plant?

Answer:

You are allowed to put the tower on land that is in the soil conservation bank or on acreage you plant.

Question:

What is the definition of a small wind application?

Answer:

Typically 100 KwH and less than $200,000 in total project size but the grants are available no matter what size turbine you choose to install.

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Solar

Question:

I only have one electric meter for both my home and farm. Will I be eligible?

Answer:

The REAP program is for rural small business and agricultural producers. Grants cannot be awarded for residential use. The Solar panels will need to be connected to a commercial meter.

Question:

I am applying for several grants. What if not all are awarded?

Answer:

You are allowed and encouraged to apply for any and all funding for this project. Awards made prior to the application can be used as part of your funding. Grants applied for but not awarded cannot be used as funding sources.

Question:

I plan on installing a stand-alone solar system. Will this affect my chances of winning?

Answer:

Typically, stand alone systems have a higher cost which does impact the payback of the systems. Payback is used as one of many criteria for the award of a grant.

Question:

I want to sell electricity back to the utility. Will this impact my chances of winning?

Answer:

In order for a grant to be awarded, you will need to calculate the payback of the system. Selling utilities your power under a net metering arrangement is typically the best return on investment. Under net metering an investor owned utility will allow you to generate up to 10kw of power to offset your total electric use over a 12 month period of time. If you are on an REMC line most Coops will only purchase the power from you at a wholesale rate, which will significantly change your payback and return on investment (ROI). Both of these factors are used to determine the final score of your grant proposal.

Question:

I plan to heat my shop with solar power. Should I write up the grant as a renewable energy project or as an energy savings project?

Answer:

Typically, proposals score best when written up as energy conservation. Examination of the self-scoring sheet is the best way to determine if it is renewable or energy conservation for heating of an existing building. Of course, if the building is new, the only choice is to apply for the renewable grant.

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