HILO, Hawaii (U.S. Department of Agriculture) — USDA Rural Development State Director Chris Kanazawa has announced $35.5 million in total investments to Banana Solar LLC, and Mana Solar, LLC, both located in American Samoa. The projects will help develop renewable energy systems to provide power for people on Tutuila Island and support community efforts to rely on clean energy.
“It’s an unfortunate reality that our island communities endure some of the highest electricity prices in the world,” Kanazawa said. “These investments, through the Inflation Reduction Act, will support clean, renewable energy generation in American Samoa, which will ultimately improve access to affordable, and more stable energy for the people of Tutuila Island.”
Banana Solar LLC plans to use a $12 million investment, provided through the Powering Affordable Clean Energy or PACE program, to develop a 6.6-megawatt solar and battery energy storage system for renewable energy. This will provide power to approximately 1,300 households on Tutuila Island, meeting nearly 6% of their energy needs with renewable energy.
“The 20-megawatt Banana and Mana Solar projects represent a proud achievement for American Samoa that will place the territory on the cutting edge of solar energy production in the Pacific Islands,” said Banana Solar LLC and Mana Solar LLC President Daniel Myung. “Instead of buying fossil fuels, American Samoa Power Authority will now be buying renewable energy, at about 50% less than the cost of diesel.”
Also in American Samoa, Mana Solar LLC plans to use a $23.5 million investment to develop a 13.4-megawatt community solar and battery energy storage system. This will provide power to approximately 2,500 households on Tutuila Island, meeting nearly 12% of their energy needs with renewable energy. These projects will help the American Samoa Renewable Energy Committee achieve its goal of using 100% clean energy by 2024.
U.S. Department of Agriculture Secretary Tom Vilsack has announced $78.3 million in partially forgivable loans for clean energy projects through the PACE program to help lower electricity bills for households, expand reliable access to renewable energy and create jobs for rural families, small businesses and agricultural producers. The investments are going to organizations based in Maryland, Ohio, Vermont, Washington and American Samoa.
The funding for USDA’s PACE program is from the Inflation Reduction Act, which is the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936 as part of the New Deal. Inflation Reduction Act programs partner with rural communities to deliver clean, reliable and affordable energy.
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.
By using renewable energy from natural sources, these investments make it more affordable for people to heat their households, run their businesses, power cars, schools, hospitals and more.
“USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America.”
To learn more, visit www.usda.gov/.
