
The U.S. Department of Agriculture (USDA) has announced over $6 billion in funding to support clean energy initiatives in rural communities. The investment will help develop solar, wind, battery storage, and hydropower projects aimed at lowering emissions, reducing electricity costs, and creating jobs.
The bulk of the funding—$5.5 billion—will go to nonprofit, member-owned electric cooperatives through the USDA’s Empowering Rural America (New ERA) program. Another $565 million in partially forgivable loans will be distributed under the Powering Affordable Clean Energy (PACE) program to support rural energy development.
One of the largest awards went to Seven States Power Corporation, which secured $439 million to construct a 250-megawatt solar facility serving the Southeast. Meanwhile, Fox Islands Electric Cooperative in Maine will receive $8.7 million to upgrade its wind farm and install solar panels. In Alaska, the Inside Passage Electric Cooperative secured $7.4 million to build a run-of-river hydropower project.
Industry experts emphasize that while the funding is a major step, challenges remain, including permitting processes and project execution. Keith Dennis, president of the Beneficial Electrification League, noted that building these facilities "takes time and careful planning."
The programs, created under the 2022 Inflation Reduction Act, represent the largest federal investment in rural electricity infrastructure since the New Deal. Advocates say these efforts ensure rural communities benefit directly from clean energy, rather than just hosting large corporate-owned projects.