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STOWE, Vt., Dec. 16, 2024 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced $78.3 million in partially forgivable loans for clean energy projects through the Powering Affordable Clean Energy (PACE) program to help lower electricity bills for households, expand reliable access to renewable energy and create jobs for rural families, small businesses and agricultural producers.
The funding for USDA’s PACE program is from the Inflation Reduction Act, which is the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936 as part of the New Deal. Inflation Reduction Act programs partner with rural communities to deliver clean, reliable and affordable energy.
“Partnering with local governments, companies, and others to provide clean, reliable energy to rural Americans lower’s people’s costs, strengthens the nation’s energy security and reduces pollution,” Secretary Vilsack said. “Under the leadership of the Biden-Harris Administration, USDA has made historic investments in rural America to create a more affordable and sustainable future, benefiting rural families, businesses and the health of our planet for generations to come.”
Rural Utilities Service Administrator Andy Berke traveled to rural Vermont to highlight one of the announced projects with the Town of Stowe Electric Department. The Electric Department will use a $6 million investment to develop small hydroelectric and solar facilities with a backup battery energy storage system. This will provide enough renewable energy to power approximately 115 local households.
The Town of Stowe Electric Department is one of seven projects receiving funding in today’s announcement. USDA is awarding $78.3 million in partially forgivable loans to organizations based in Maryland, Ohio, Vermont, Washington and American Samoa. The investments will provide clean energy to power almost 7,000 households each year. For example:
- In American Samoa, Banana Solar LLC plans to use a $12 million investment to develop a 6.6-megawatt solar and battery energy storage system for renewable energy. This will provide power to approximately 1,300 households on Tutuila Island, meeting nearly 6% of their energy needs with renewable energy.
- Also in American Samoa, Mana Solar LLC plans to use a $23.5 million investment to develop a 13.4-megawatt community solar and battery energy storage system. This will provide power to approximately 2,500 households on Tutuila Island, meeting nearly 12% of their energy needs with renewable energy.
- In Maryland, Gridwealth-SCP LLC’s GreenGage plans to use a $9.3 million investment to construct a 4.3-megawatt solar facility and battery energy storage system for renewable energy in Dorchester County. It will provide clean energy to 650 households annually.
- Also in Maryland, Gridwealth-SCP LLC’s Rosehip plans to use a $12.9 million investment to construct a 6.2-megawatt solar facility and battery energy storage system for renewable energy in Somerset County. It will provide clean energy to approximately 910 households annually.
- In Ohio, the Village of Pioneer will use a $10.5 million investment to finance solar facilities totaling 4.9 megawatts of renewable energy in rural areas, enough to power nearly 952 households a year.
- In Washington, Cunningham Solar WA will use a $4 million investment to develop nearly 3 megawatts of solar for renewable energy in rural areas. It will interconnect with Big Bend Electric Cooperative’s distribution system, supplying power to roughly 560 households each year.
In addition to the seven entities receiving funding today, USDA has selected 32 applications across 23 states and Puerto Rico to move forward in the process to help make clean, affordable and reliable energy accessible to the people of rural America. These were the first selectees under the PACE program’s rolling application process.
Additional details on all funding recipients and finalists are available on the PACE website.
In May 2023, USDA made $1 billion available through PACE to fund new clean energy projects and energy storage in rural America. This program provides low interest loans with up to 60% loan forgiveness to renewable energy developers, rural electric cooperatives and other rural energy providers for renewable energy storage and projects that use wind, solar, hydropower, geothermal and biomass.
By using renewable energy from natural sources, these investments make it more affordable for people to heat their households, run their businesses, power cars, schools, hospitals and more.
PACE is also a covered program in the President’s Justice40 Initiative, which aims to ensure 40% of the overall benefits of certain federal climate, clean energy and other investment areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
To date, USDA has selected 34 projects totaling more than $995 million in partially forgivable loans to move forward in the PACE application process.
USDA expects to provide a further update on the PACE program in the coming weeks.
USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and healthcare; and high-speed internet access in rural, Tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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USDA is an equal opportunity provider, employer, and lender.
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