The US Department of Agriculture (USDA) stops financing for internal programs that cause solar and wind construction on agricultural land. USDA sec. Brooke Rollins made the announcement on X Yesterday, referring to concern about Solar and Wind’s ‘destruction’ of the American agricultural land.
“We no longer allow companies to use your taxpayer dollars to finance solar projects on Prime American Farmland, and we no longer allow solar panels that are manufactured by foreign opponents to be used in our USDA-Final Projects,” Rollins said in a press release from USDA.
Solar projects will no longer be eligible for the USDA development company and the industrial guaranteed loan program. Perhaps even more important is that the USDA is now eligible for the size of solar projects for subsidies via the National Energy for America (REAP) program.
In the future, the land-mount solar projects of more than 50 kW large cannot be eligible, nor can other soil mounting projects that do not offer ‘historical energy consumption’, according to the press release.
REAP offers financing of solar project for farmers, small companies, cooperatives, electric utilities and tribal companies in agricultural communities. It is currently unclear whether solar projects that have already been approved for a REAP subsidy, but no longer meet these new provisions, receive that financing.
George Horrocks, president of New Hampshire Solar Contractor Harmony Energy Works, said that a large part of the output of his company is funded by Reap Grants.
“Am I worried about it? Yes, but I’m more worried about farmers. If you look at the situation of farmers, it’s about the bottom line to stay alive,” Horrocks said. “That’s what they try to do. I know these guys who love agriculture, and that’s why they do it. Now you are actually trying to break their legs. They just try to lower their energy costs.”
During his arrival, the REAP program provided cash subsidies for 25% of the costs of a solar project, which was increased to 50% when the inflation reduction law in 2024 yielded an extra $ 145 million in financing. The program was planned to offer more than $ 2 billion in financing until 2031 with the help of the IRA. Since it started, Reap had already granted $ 2.08 billion in project financing for projects for renewable energy and energy efficiency.
This is a developing story. Solar Power World Will continue to update this news as more information is released.
