Agricultural Businesses Energy Incentive Program

The Agricultural Businesses Energy Incentive Program, administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) Energy Unit, offers matching grants to accelerate the implementation of energy waste reduction and renewable energy projects on farms and agribusinesses in Michigan. Aligned with the MI Healthy Climate Plan, the program seeks to lower energy consumption and operational costs, expand onsite renewable energy generation, and strengthen the resilience and economic stability of Michigan's agricultural industry.

Eligible applicants are agricultural or related entities (farms, crop processors, food processors, and related service providers) physically located in Michigan with fewer than 500 employees worldwide. Funding priorities favor applicants with significantly fewer than 500 employees, projects demonstrating innovative renewable energy integration (such as agrivoltaics, pumped water storage, or thermal batteries), projects utilizing audit or assessment results from recognized providers, leveraging other energy assistance programs, and projects generating high-value success stories transferable to other agricultural entities. Applicants must possess an active SAM.gov Unique Entity Identifier (UEI), register in the State of Michigan's SIGMA Vendor Self Service (VSS), and comply with federal requirements such as NEPA, SHPO Section 106, and Build America, Buy America Act (BABA) provisions.

Eligible projects include the purchase, installation, and construction of energy efficiency upgrades and renewable energy systems such as high-efficiency HVAC and heat pumps, building envelope insulation and efficient doors/windows, LED lighting, efficient cooling and refrigeration, electric or solar irrigation pivot pumps, diesel-to-electric motor conversions, solar photovoltaic systems with or without battery storage, solar water heaters, and wind turbines. Ineligible projects include non-commercial demonstration technologies, projects located outside Michigan, routine building repairs, vehicles, computers, real property acquisition, and projects requiring NEPA environmental assessment studies without prior U.S. Department of Energy approval.

Applications are accepted on an ongoing, rolling basis until all funds are allocated or until August 30, 2027. Applicants must submit proposals through EGLE's Online Application system, attaching the Approved Budget Form with budget narrative, a detailed project timeline, applicant and partner organizational charts, recent financial statements or audits, and any required environmental or historical review forms (such as SHPO Section 106 or NEPA). Proposals are evaluated on a 100-point scale across Project Scope & Objectives (20 points), Project Feasibility (20 points), Project Impact (20 points), Experience of Organization/Project Team (20 points), and Program Priorities (20 points). Selected recipients must enter into a formal Grant Agreement within 45 calendar days of notification.