U.S. Department of Agriculture (USDA) Rural Development State Director Rhiannon Hampson announced Friday, the USDA is awarding 16 grants and one loan to help increase access to solar energy in Maine. Businesses in nine counties (Cumberland, Hancock, Lincoln, Oxford, Penobscot, Somerset, Waldo, Washington and York) will receive grants to cover up to half the cost of projects to install on-site solar panels. Rural Development will also provide a loan of $5.025 million to Alna Community Solar. The grants and loan come through the agency’s Rural Energy for America Program (REAP).

“USDA’s REAP grants help Maine small businesses and agricultural producers to be a part of the climate solution,” said Director Hampson. “When we reinvest federal dollars right here in Maine, we demonstrate how our government truly partners with each one of us. Helping to make these projects affordable for small businesses ultimately benefits everyone using our shared electric grid, homeowners and businesses alike.”

Nationwide, USDA announced funding for 586 projects today to expand access to clean energy systems and increase the availability of domestic biofuels. When announcing the awards, Agriculture Secretary Tom Vilsack said, “By expanding access to homegrown biofuels and clean energy systems, we are making long-lasting investments that will strengthen our energy independence, address the impacts of climate change and create new market opportunities and revenue streams for American producers while bringing good-paying jobs to rural communities.” 

Each farm and business will cover at least half of the total cost for their projects. REAP grants help make a range of clean energy and energy efficiency projects more affordable.

Over the last four fiscal years, Rural Development has awarded $18 million in competitive REAP grants to 221 farms and rural small businesses in Maine. A significant portion of the funding came through the Inflation Reduction Act (IRA), which enabled Rural Development to fund up to half the cost of eligible clean energy projects. To date, USDA has invested more than $14 million from the IRA in 171 REAP grants in Maine. In that same period, the agency has provided $192 million in loans and loan guarantees for large-scale clean energy projects in the state.

REAP funding for projects in Maine’s First District includes: $5,025,000 for Alna Community Solar LLC to build a 2.7 MW DC ground-mounted solar project in Alna. It is expected to produce 3,600,278 kilowatt hours (kWh) of electricity in the first full year of operation; $21,000 for Monhegan Brewing Company LLC to install a new 8.2-kilowatt (kW) roof-mounted solar photovoltaic (PV) system with battery storage. The system is expected to save the business $6,754 in annual energy costs; $51,000 for Brunswick Town Holdings LLC, a small commercial real estate company in Gray, Maine, to install a new 39 kilowatt (kW) roof-mounted solar photovoltaic (PV) system. The system is expected to generate 51,710 kilowatt hours (kWh) annually; $44,950 for Grovest 101 LLC, a small real estate business in Wiscasset, to install a new 30.6-kilowatt (kW) roof-mounted solar photovoltaic (PV) system. The project is expected to generate 39,260 kilowatt hours (kWh) annually; and $75,000 for PKS Woodworks LLC, a third-generation woodworking company located in South Berwick, Maine, to install a new 52.8-kilowatt (kW) roof-mounted solar photovoltaic (PV) system. The system is expected to save $10,479 in annual energy costs.

“These investments are a testament to the effectiveness of the REAP program in supporting rural communities’ transition to renewable energy,” said U.S. Rep. Chellie Pingree, D — Maine. “By reducing energy costs, these projects enable local businesses to reinvest in their operations and workforce, fostering economic growth and sustainability in Maine. The success of REAP funding across Maine highlights the program’s substantial impact in supporting rural communities with renewable energy initiatives. These projects not only contribute to our state’s climate goals but also provide direct economic benefits to local businesses and consumers.”

In addition to the five projects in Maine’s First District, this latest round of REAP grants will include funding for 12 projects in Maine’s Second District. 

 The IRA represents the single largest investment in climate and clean energy solutions in American history.