It was announced yesterday, December 16, 2024, by the U.S. Department of Agriculture (USDA) Secretary Tom Vilsack that rural America would receive a loan to support clean energy projects
The $78.3 million funding will come through the Powering Affordable Clean Energy (PACE) programme, designed to lower household electricity costs, expand access to renewable energy, and generate new jobs in rural areas.
This funding is part of the USDA’s mission to modernise the nation’s energy systems, especially in underserved communities.
The Inflation Reduction Act is the largest investment in rural electrification since President Franklin Delano Roosevelt’s Rural Electrification Act of 1936 and backs the PACE programme. This new fund shows the Biden-Harris administration’s dedication to energy security and environmental sustainability.
The funding aims to reduce electricity, enhance renewable energy access, promote job creation, and minimise pollution.
Essential projects in rural communities
An initiative from the funding that stands out is the $6 million investment in Vermont’s Stowe Electric Department.
This will fund the development of small hydroelectric and solar facilities and an energy storage system.
The renewable energy will power around 115 local households; this shows how small-scale projects can greatly impact local communities.
Other projects worth noting include American Samoa, which will receive investments in solar and battery storage systems.
For example, Banana Solar LLC is expected to receive $12 million to build a 6.6-megawatt solar facility providing around 1,300 households on Tutuila Island.
Another similar project, Mana Solar LLC, receives $23.5 million to create a larger 13.4-megawatt solar installation, which will meet nearly 12% of the island’s energy needs, benefiting 2,500 households.
These investments are essential to reduce energy costs and create a stronger infrastructure in areas that often rely on imported fossil fuels.
By focusing on renewable energy such as solar, wind and hydro, these projects and funding will increase the sustainability and reliability of power supplies.
Expanding clean energy access
USDA will also support clean energy projects across various states besides Vermont and American Samoa.
In Maryland, Gridwealth-SCP LLC’s GreenGage and Rosehip projects will create solar facilities and battery storage systems, supplying clean energy to more than 1,500 households in Dorchester and Somerset Counties.
In Ohio, the Village of Pioneer is set to receive $10.5 million for a solar project that will create enough power to serve nearly 1,000 homes annually.
All of these projects show the USDA’s plan to diversify the source of clean energy available to rural communities; these new sources of clean energy range from solar and hydroelectric to new technologies such as battery storage.
These projects aim to ensure that renewable energy isn’t just a luxury for urban areas but also an option for rural populations
A greener future available to everyone
The USDA’s funding initiatives aren’t just about energy but about creating long-term, sustainable change.
The PACE program also aligns with the President’s Justice40 Initiative, which targets ensuring that 40% of the benefits from climate, clean energy, and other federal investments flow to disadvantaged communities.
Many of these projects are in areas that historically need better access to clean energy. By supporting these projects, the USDA addresses economic and environmental inequalities.
The funding is also meant to be flexible; therefore, PACE offers low-interest loans with up to 60% loan forgiveness. This will make it easier for rural energy providers, agriculture producers, and electric cooperatives to adopt and upscale renewable energy technologies.
A future with energy independence
Part of the rollout of these projects is to address energy independence. By moving away from imported fuels, rural areas can create their energy, reducing their vulnerability to global energy price fluctuations.
As renewable energy sources like solar and wind become more efficient and cost-effective, rural communities will benefit more from these technologies.
The PACE program is an important part of the U.S’ transition towards a more sustainable, resilient, and equitable energy future.
In the coming weeks, the USDA is expected to announce further updates to the program, including additional funding opportunities for rural clean energy projects.
