High Energy Cost Grants | RD RUS HECG25

Opportunity Information: Apply for RD RUS HECG25

The High Energy Cost Grants program (Funding Opportunity Number: RD RUS HECG25; CFDA/Assistance Listing: 10.859) is a competitive grant opportunity run by the U.S. Department of Agriculture's Rural Utilities Service (RUS). Subject to appropriations, RUS expects to make up to $10 million available in total to help communities facing extremely high household energy burdens. The basic purpose is to fund practical, community-serving energy investments that reduce costs, improve reliability, and expand access to appropriate energy infrastructure in places where residents pay unusually high amounts for home energy.

To qualify as an eligible community, the key threshold is that the community's average annual residential expenditure for home energy must exceed 275 percent of the national average. Within those high-cost communities, grant funds can be used to acquire, construct, or improve energy generation, transmission, or distribution facilities. The program also explicitly supports renewable energy projects, whether they are grid-connected (on-grid) or stand-alone systems (off-grid), as well as energy efficiency and energy conservation efforts designed to reduce overall consumption and lower long-term costs for the community.

The program is structured around community benefit rather than individual benefit. Projects cannot be designed primarily to serve or advantage a single household or a single business. In other words, the funded work needs to provide community energy services or infrastructure improvements with broad public or community-wide value, rather than functioning as a private upgrade for one customer.

There are also clear limits on what the grant money can cover. Funds cannot be used to pay for preparing the grant application itself, and they cannot be used for ongoing operating costs. In addition, the program will not fund purchases of equipment, structures, or real estate that are not directly tied to providing community energy services. The intent is to keep spending focused on tangible, eligible energy infrastructure and conservation outcomes rather than administrative overhead or unrelated capital purchases.

Eligibility is broad across public, private, and nonprofit sectors. Eligible applicants include state, county, and city/township governments; special district governments; independent school districts; public and state-controlled institutions of higher education; private institutions of higher education; federally recognized Tribal governments and other Tribal organizations; public housing authorities/Indian housing authorities; nonprofits (both 501(c)(3) and non-501(c)(3)); for-profit organizations (including small businesses and other for-profits); and other unrestricted categories listed in the notice. Individuals are included as eligible applicants in the sense that they may apply on behalf of an entity that is not yet incorporated, but awards will not be made directly to individuals, reinforcing the program's community-focused purpose.

Geographically, applicants must be located in the United States, a U.S. Territory, or another area authorized by law to participate in RUS programs or under the Rural Electrification Act. The opportunity is categorized as discretionary and uses the grant funding instrument, with activity areas spanning energy, community development, and business/commerce impacts.

In terms of scale and timing, the award ceiling is listed as $3,000,000 per award, with an estimated 10 awards anticipated. The original closing date in the notice is February 28, 2025.

• The Rural Utilities Service in the business and commerce, community development, energy sector is offering a public funding opportunity titled "High Energy Cost Grants" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.859.
• This funding opportunity was created on 2024-12-30.
• Applicants must submit their applications by 2025-02-28. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $3,000,000.00 in funding.
• The number of recipients for this funding is limited to 10 candidate(s).
• Eligible applicants include: State governments, County governments, City or township governments, Special district governments, Independent school districts, Public and State controlled institutions of higher education, Native American tribal governments (Federally recognized), Public housing authorities/Indian housing authorities, Native American tribal organizations (other than Federally recognized tribal governments), Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501 (c) (3) status with the IRS, other than institutions of higher education, Private institutions of higher education, Individuals, For-profit organizations other than small businesses, Small businesses, Others, Unrestricted.

Apply for RD RUS HECG25

[Watch] Creating a grant proposal using the step-by-step wizard inside the applicant portal: