USDA Funding Powers 400 MW Solar, 200 MW Battery Storage Project in Rural Texas
At the end of December 2024, the U.S. Department of Agriculture (USDA) Rural Utilities Service awarded $1.4 billion in grant and loan financing to San Miguel Electric Cooperative, a utility provider that operates in rural Texas. The financing will go toward a total of 600 MW of renewable energy, including 400 MW for solar panels and 200 MW for a battery storage system.
Exciting Opportunities for the Rural Community
Craig Courter, the general manager of San Miguel Electric Cooperative, expressed his excitement about the funding, stating, “We are very excited to be named a selectee for the New ERA program, providing our community with unprecedented opportunities. This includes a wide range of educational, agricultural, and infrastructure improvements that will benefit our employees, cooperative members, and the region as we continue to deliver affordable, reliable energy to rural Texans at a time of record demand.”
The funding, made possible through the Empowering Rural America (New ERA) program, is part of a $9.7 billion initiative under the Inflation Reduction Act. This program aims to help rural communities transition to cleaner energy sources while reducing environmental pollution.
Environmental Impact and Job Creation
The projects funded by the USDA are expected to create about 600 jobs and save customers more than $1.09 billion over 30 years. Additionally, the renewable energy initiatives will reduce emissions by 1.8 million tons per year, equivalent to removing about 446,000 cars from the roads annually.
The move towards cleaner energy sources is a significant shift for San Miguel Electric Cooperative, which currently sources electricity from a lignite-burning thermal generating station. This transition is crucial as lignite combustion can contribute more carbon emissions than burning hard coal and emit harmful pollutants, as reported by Greenpeace and the U.S. Environmental Protection Agency.
Commitment to Clean Energy
San Miguel Electric Cooperative aims to eliminate greenhouse gas emissions with the new solar and battery storage facility expected to be operational by 2027. By securing funding through the New ERA program, the cooperative is taking a step towards providing affordable and reliable power to rural South Texans while reducing environmental impact.
In conclusion, this funding from the USDA represents a significant milestone for San Miguel Electric Cooperative and underscores the commitment to enhancing energy security and lowering electricity bills for rural communities. Agriculture Secretary Tom Vilsack highlighted the importance of these historic investments in improving air and water quality while strengthening America’s energy landscape.