USDA Assistance for Rural Electric Cooperatives - American Cities Climate Challenge
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USDA Assistance for Rural Electric Cooperatives

Federal Agency




To provide loans and other financial assistance for electric cooperatives to achieve emissions reductions through the purchase or deployment of renewable energy, or to make energy efficiency improvements to existing electric generation or transmission systems.

Applicant and/or Project Eligibility Requirements

Eligible recipients include electric cooperatives, particularly those serving predominantly rural areas, and its subsidiaries.

Decarbonization Considerations

This program can reduce the financial barriers to buying or building new renewable energy systems in rural communities. This should be considered in the context of expanded tax credits for renewable energy systems and related incentives for where such projects are sited.

Equity Considerations

When building new renewable energy systems, consider designed local workforce development initiatives (i.e. solar training), developing programs that lower income residents and small businesses could subscribe to in order to reduce their energy burden (i.e. community solar), and adequately compensating those communities where new projects are being sited.

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Other Notes

Grant shall not exceed 25% of total project costs. Funding is available until 2031.

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