USDA - High Energy Cost Grant Program
Administered by USDA Rural Utilities Service
This USDA grant program provides funding for renewable energy and efficiency projects in high-cost rural communities where average home energy costs exceed 275% of the national average. If you live in an eligible area, you typically cannot apply directly—your local utility or a nonprofit serving your community applies on behalf of rural customers for projects that may reduce energy costs through solar, wind, biomass, or weatherization improvements.
The program funds renewable energy installations and efficiency upgrades in eligible rural high-cost communities, with recent grants ranging from $100,000 to $3 million per project. You can support customer projects by working with qualifying retail power suppliers, cooperatives, local governments, or tribal entities that apply for grants covering solar thermal, photovoltaic, wind, biomass, and related infrastructure improvements.
This USDA program (launched 2000) targets rural communities with energy costs 275%+ above the national average, awarding grants of $100,000–$3 million for energy generation, transmission, distribution, and efficiency infrastructure. Eligible applicants include retail power suppliers (nonprofits, commercial, state/local/tribal governments) serving rural areas; the most recent solicitation closed February 28, 2025, with $7 million available, and future funding cycles should be monitored on the program website.
Program details
- Program ID
- 4359
- Last updated
- 5/16/2025
Eligibility
- Sectors
- commercial industrial local government nonprofit residential schools state government tribal government institutional
- Technologies
- solar water heat solar space heat solar thermal electric solar thermal process heat solar photovoltaics wind (all) biomass hydroelectric wind (small) hydroelectric (small) yes; specific technologies not identified
Incentive amount
$10 million (2021 solicitation)
Program summary
NOTE: The most recent solicitation for this program closed February 28, 2025. Please check the program website for information on future solicitations.
The U.S. Department of Agriculture (USDA) offers an ongoing grant program for the improvement of energy generation, transmission, and distribution facilities in rural communities. This program began in 2000. Eligibility is limited to projects in communities that have average home energy costs at least 275% above the national average. Retail power suppliers serving rural areas are eligible to apply for grant funding, including non-profits (cooperatives and limited dividend or mutual associations), commercial entities, state and local governments entities, and tribal governments. Under the most recent solicitation for projects, a total of $7 million was available for qualifying projects. Under this solicitation grants ranging from $100,000 to $3 million were available for a variety of activities, including:
- Electric generation, transmission, and distribution facilities;
- Natural gas or petroleum storage or distribution facilities;
- Renewable energy facilities used for on-grid or off-grid electric power generation, water or space heating, or process heating and power;
- Backup up or emergency power generation or energy storage equipment; and
- Weatherization of residential and community property, or other energy efficiency or conservation programs.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
