USDA High Energy Cost Grants Program

FUNDING PROGRAM: USDA High Energy Cost Grants Program.

FUNDING OPPORTUNITY NUMBER: RD-RUS-HECG25.

FUNDING AGENCIES: United States Department of Agriculture (USDA) Rural Development (RD) Rural Utilities Service (RUS or the Agency).

OPPORTUNITY:

USDA is seeking applications from energy providers to lower costs for people in rural areas. The grants will help providers offset costs for people whose household energy expenses total 275% of the national average or higher. The program helps eligible applicants acquire, construct, extend, upgrade, or otherwise improve energy generation, transmission, or distribution facilities. Grants may also be used to install on-grid and off-grid renewable energy systems and to make energy efficiency improvements. 

DESCRIPTION:

Funds may be used to finance the acquisition, construction or improvement of facilities serving eligible communities, including:

• Electric generation, transmission and distribution facilities, including:
  • Equipment, materials and activities
  • Land or right-of-way acquisition, professional expenses, engineering and permitting costs
  • Natural gas distribution and storage facilities, including equipment, materials and activities
  • Petroleum product storage and handling facilities, including equipment, materials and activities
• Renewable energy facilities, including solar, wind, hydropower or biomass technologies used for on-grid or off-grid:
  • Electric power generation
  • Water or space heating
  • Process heating and power
  • Backup or emergency power generation or energy storage technology, including generation equipment installed on consumer premises

Funds may also be used for the implementation of initiatives such as:

• Energy efficiency improvements and conservation measures (i.e. weatherization of residences and community facilities)
• Programs encouraging the use of energy-saving appliances and devices
• Programs aimed at improving the quality and cost of energy service

ELIGIBLE APPLICANTS: 

Most retail or power supply providers serving an eligible rural community, including:

• State and local governmental entities
• Federally recognized Tribes and Tribal entities
• Non-profits, including cooperatives and limited dividend or mutual associations
• For-profit businesses

COST SHARING: There are no cost sharing or matching requirements for this program.

FUNDING AVAILABLE:

• FUNDING AVAILABILITY: Funding for FY 2025 will not be known until Congress passes an appropriations act. The Agency estimates that $8 to $10 million will be available based on FY 2023 and FY 2024 amounts.
• INDIVIDUAL AWARD AMOUNTS: Maximum amount of grant assistance is $3,000,000; Minimum amount of grant assistance is $100,000.

APPLICATION DEADLINE: February 28, 2025.