Businesses and agricultural producers in the region operate on small margins. Meanwhile, those with high energy usage, such as manufacturers and local grocers, face ever-rising utility costs.
That’s why Kentucky Highlands Investment Corporation applied for and received a $125,000 grant from REAP, which stands for Rural Energy for America Program. It offers grants and loans to qualifying businesses to make energy-efficiency upgrades and install renewable energy systems.
“Many of these enterprises are unaware of or do not have the capacity to apply for funding sources that could significantly reduce their operating costs and help them to be more resilient and positioned for growth opportunities,” said Jerry Rickett, president & CEO of Kentucky Highlands.
Kentucky Highlands’ staff and the energy management consultant Midwest Energy Enterprise, LLC, will assist seven to 11 agricultural producers and rural small businesses in preparing applications to access the loan and grant funds.
Midwest Clean Energy Enterprise is an energy consulting firm based in Frankfort that works throughout the Midwest to promote and implement energy-efficiency and renewable technology projects.
“One way KHIC can help businesses reduce uncertainty is to make loans that lead to increased energy efficiency or adopting renewable energy technologies to reduce utility costs and preserve operating cash,” Rickett said. “The REAP program reduces the barriers for rural businesses to cut energy costs and generate power for themselves.”
KHIC and MCEE will help provide technical assistance with everything from evaluating the opportunity for renewable energy, conducting energy audits, assistance in loan and grant applications, and planning construction.
Kentucky Highlands estimates that at least 90 percent of the REAP applications and related project work will benefit rural small businesses and agricultural producers in the census tracts the USDA has designated distressed or disadvantaged, or both. It also will work on smaller projects and those that consider under-utilized renewable technologies.