The Department of Energy opens another round of funding for the Energy Improvements in Rural or Remote Areas program (ERA)

The Office of Clean Energy Demonstrations (OCED) at the Department of Energy (DOE) issued a funding opportunity for the Energy Improvements in Rural or Remote Areas (ERA) program. 

The goals of the ERA program are to:  

1. Deliver measurable and sustained benefits to people who live in rural or remote areas by funding replicable clean energy projects that lower energy costs, improve energy access and resilience, increase economic opportunity, and/or reduce environmental harm. 
2. Demonstrate rural or remote energy system approaches using climate-resilient technologies, business structures that promote economic resilience, accessible and appropriate financing mechanisms, and/or best practices in community leadership and engagement, and workforce development.  
3. Build clean energy knowledge, capacity, and self-reliance in rural and remote parts of America. 

Due Dates: 

• Required concept paper by February 27, 2025 at 5:00pm ET; Full applications by August 28, 2025 at 5:00pm ET

Award: 

• $2 million to $50 million; required 5-50% non-federal cost-share

Funding will support materials, equipment, time, labor, and other resources to build clean energy projects in rural or remote communities and run other allowable activities as proposed (e.g., collaboration, outreach, and engagement with Tribes and stakeholders, or workforce development programs). Eligible applicants include Tribal nations, state or local governments, nonprofit organizations, labor unions, for-profit entities, rural electric cooperatives, farming associations, and institutions of higher education, among others. 

DOE anticipates awarding up to $400 million in cooperative agreements with awards ranging from $2 million to $50 million. A 5-50% cost-share match requirement is also anticipated depending on the applicant type and project types. Applicants must propose projects that support at least one of these eligible activities: 

1. Improving overall cost-effectiveness of energy generation, transmission, or distribution systems;  
2. Siting or upgrading transmission and distribution lines; 
3. Reducing greenhouse gas emissions from energy generation in rural or remote areas;  
4. Providing or modernizing electric generation facilities;  
5. Developing microgrids; and  
6. Increasing energy efficiency.

The ERA program has four topic areas as part of the funding opportunity. Project activities must fall into a topic area. The objective summary of each topic area is as follows:

Topic Area 1: Open category 
Objective: Offer a path to funding rural or remote clean energy infrastructure for many different project types, demonstrating approaches to addressing one or more relevant adoption barriers.

Topic Area 2: Dual use and co-location 
Objective: Provide funding for clean energy demonstration projects in rural and remote communities that either:  

• Allow for using land or water for both energy supply and other activities; or 
• Are co-located with other activities and result in other benefits beyond energy supply and reduced pollution.  

Demonstrations could help to: 

1. Address potential conflicts between clean energy and other land and water uses in rural or remote areas;  
2. Maximize tangible, measurable co-benefits of clean energy projects beyond supplying energy and reducing pollution—including but not limited to economic, workforce, and environmental benefits; and  
3. Increase equitable access to clean energy through new business models and financing structures. 

Topic Area 3: Smaller-scale community-centered  
Objective: Fund smaller-scale clean energy projects that are initiated, driven, and/or broadly supported by residents of the host community(ies).  

• Projects should increase long-term local capacity for future clean energy projects in the applying community and/or in nearby or peer communities. This could include increasing the availability of technical expertise to plan and develop projects, or improved community perception.  
• We encourage applicants to collaborate with relevant partners, particularly Tribal governments and community-based organizations that are familiar with the local community, and/or entities (e.g., nonprofits or extension schools) that have experience with developing renewable energy projects in similar areas.

Topic Area 4: Isolated microgrids & unelectrified buildings  
Objective: Build clean energy projects for either:  

• Isolated microgrids (often located in ultra-remote areas and served primarily by diesel generators); or 
• Unelectrified homes or community buildings not currently served by an electrical grid.    
• Projects should demonstrate approaches to addressing one or more relevant adoption barriers.

A summary of each topic area, its award size, anticipated award amounts per area, and cost-share requirement is as follows:

Concept papers are required as the first stage of the application process. Following concept paper review, the ERA program will notify applicants of whether they are “encouraged” or “discouraged” to submit a full application. 

To read the full Notice of Funding Opportunity on the ERA program, please click here.