USDA Powering Affordable Clean Energy (PACE) Program
OPPORTUNITY:
The Powering Affordable Clean Energy (PACE) program is part of the Inflation Reduction Act, which represents the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936. With $1 billion in funding, PACE helps make clean, affordable, and reliable energy accessible to the people of rural America.
Under PACE, USDA Rural Development’s Rural Utilities Service (RUS) will forgive up to 60 percent of loans for renewable energy projects that use wind, solar, hydropower, geothermal, or biomass, as well as for renewable energy storage projects.
DESCRIPTION:
The PACE program is available to eligible applicants who generate electricity for resale to residents in both rural and nonrural areas. However, at least 50 percent of the population served by the proposed renewable energy project must live in communities with populations of 20,000 or fewer.
Applicant must demonstrate that the proposed project is:
- Eligible
- Financially and technically feasible
- Securable
- Reliable and resilient (can recover quickly following an unexpected disruption)
- Affordable
- Able to be completed within the allotted timeframe.
COST SHARING:
Applicant is required to cost share 25% of the total capitalized project cost
ELIGIBLE APPLICANTS:
- Corporations, states, and territories, along with their subdivisions and agencies
- Municipalities
- Utility districts
- Cooperatives
- Nonprofits
- Indian Tribes
- Alaska Native, regional, or village corporations
- Limited Liability Companies or other for-profit entities organized under the laws of any U.S. state or territory
FUNDING AVAILABLE AND APPLICATION WINDOW:
FUNDING AVAILABILITY: $1 billion. The maximum available loan is $100 million including the forgivable portion. The minimum loan is $1 million.
APPLICATION DEADLINE: To be considered for funding, you must first submit a letter of interest (LOI). The application window is open until September 29, 2023, with applications processed on a rolling basis. Your LOI must arrive before September 29, 2023.
