The U.S. Department of Agriculture (USDA) has announced new restrictions on how its programmes will support renewable energy projects, with a particular focus on farmland use. Secretary of Agriculture Brooke Rollins stated that USDA will no longer fund solar projects on prime farmland or allow USDA-funded projects to use solar panels manufactured in countries identified as foreign adversaries.
Under the new rules:
- Wind and solar projects will no longer be eligible under the USDA Rural Development Business and Industry Guaranteed Loan Program.
- For the Rural Energy for America Program (REAP), wind and solar projects will only be eligible if systems are “right-sized” for on-site energy use. Large ground-mounted solar photovoltaic systems above 50 kW without evidence of historical energy consumption will not qualify. Priority points for solar projects in REAP grants are also removed.
These measures follow recent changes in federal legislation that reduced or eliminated several renewable energy tax credits.
