The United States Department of Agriculture (USDA) has been promoting a series of initiatives to support the growth and prosperity of rural and vulnerable areas.
The USDA Rural Development agency supports infrastructure improvements; productive and business development; internet access, public safety, medical care, among others.
Many of their programs are still in effect in Puerto Rico.
Among them, Maximiliano J.
Trujillo-Ortega, State Director of USDA Rural Development for Puerto Rico, highlighted those loans and grants to help expand economic opportunities, create jobs and improve the quality of life.
"Right now in Puerto Rico, funds have been granted for more than 40 projects this year, where there has been an investment of more than $7 million in donations, but a total investment from the private sector in rural areas that exceeds $21 million," he specified.
Specifically for the energy sector, Trujillo-Ortega mentioned to Energía Estratégica the Rural Energy for America Program (REAP), which will remain open for fiscal years 2023 and 2024, with an initial application period from December 31, 2023 to March 31, 2024, and subsequently from June 30, 2024 to September 30, 2024.
"The REAP is refundable up to 50% of the renewable energy system up to a maximum of one million dollars, meaning that the remaining 50% of the loan is a donation," he said.
He clarified that, while most tend to prioritize covering the costs of solar energy installations with storage, he called for consideration of other technologies such as small-scale wind power, hydroelectric power below 30 MW, biomass (biodiesel and ethanol, anaerobic digesters and solid fuels), geothermal energy for electricity generation or direct use, and even hydrogen, among others ( see ).
"Our REAP energy program can also be used to create small micro grid systems in Puerto Rico.
"We identified that funds are not being used in that way yet, and there are other refinancing programs that can help lower costs for entities that want to build microgrids or create renewable energy systems in rural areas," he added.
When asked by Energía Estratégica about the implementation of a mechanism for accessing the funds, the state director of USDA Rural Development for Puerto Rico clarified: "The funds for the beneficiary will come directly from the federal agency, so if a farmer -for example- wants to have a solar panel system and qualifies for my program, the loan goes directly from the agency to the farmer, it doesn't have to go through anyone else."
In a recent statement, Trujillo-Ortega also explained that this is not the only initiative and that several other opportunities are open.
Such is the case of another program that is not currently used in Puerto Rico, the Rural Energy Saving Program (RESP), which has great potential.
The RESP is a loan program for eligible borrowers that provides loans to qualified consumers for energy efficiency (EE) measures, helping families and small businesses achieve cost savings.
In this regard, the federal office clarifies that an eligible RESP borrower can be a corporation, a non-profit organization, a public agency, a municipality, a cooperative, or even a mutual association that provides a compatible purpose.
In this regard, it is important to note that EE measures include renewable energy systems on or off the grid, permanent energy storage devices, energy audits, lighting improvements, HVAC efficiency improvements and appliance upgrades, with the installation of electric vehicle chargers being another eligible activity.