Powering Strong Communities
Distributed Energy Resources

USDA Moves Forward with Funding for KPP Energy Solar Energy Investment

U.S. Department of Agriculture Rural Development Kansas Director Christy Davis on Sept. 25 announced that USDA Rural Development is moving forward in the awards process with KPP Energy and new clean energy projects from seven other applicants through the Powering Affordable Clean Energy program.

“The KPP Energy project, if approved, will receive $35 million to help lower electricity bills for households, expand reliable access to renewable energy and create jobs for rural families and small businesses in Kansas,” a USDA news release noted.

Kansas-based KPP Energy is a joint action agency.

“Rural electric utilities and power generation are the backbone of Kansas power delivery,” Davis said. “When we invest in them, we strengthen Kansas energy security and opportunities in the state.”

The announcement is part of a larger national announcement that includes possible projects in seven other states.

The details of the finalist’s project in Kansas are:

  • A plan by KPP Energy to use a $35 million investment to build seven facilities that will produce 18.5 megawatts of solar energy across central parts of the state. The communities near the proposed new power generation facilities include Clay Center, Ellinwood, Greensburg, Hillsboro, Marion, Wellington, and Winfield.

“KPP Energy looks forward to utilizing the PACE program to deliver renewable, affordable and reliable energy to its member communities,” said Colin Hansen, CEO and General Manager of KPP Energy. “While the solar facilities will be located in seven KPP member cities, all 24 rural members of the agency will directly benefit from the project.”

In May 2023, USDA made $1 billion available through PACE to fund new clean energy projects and energy storage in rural America. This program provides low interest loans with up to 60% loan forgiveness to renewable energy developers, rural electric cooperatives and other rural energy providers for renewable energy storage and projects that use wind, solar, hydropower, geothermal and biomass.

To date, USDA has selected 27 projects totaling more than $916 million to move forward in the PACE application process.

USDA expects to continue making PACE awards in the coming months.