Federal authorities contemplate scrapping the $7B Solar For All initiative
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The Environmental Protection Agency (EPA) has made a controversial decision to terminate the $7 billion Solar For All program, designed to provide renewable energy access and reduce energy costs for low-income and disadvantaged communities. The termination comes as a result of the EPA no longer having the statutory authority or appropriated funds to administer the program, citing the "One Big Beautiful Bill" as the basis for this decision.
This decision impacts 60 grant recipients nationwide who had planned or begun solar projects to benefit approximately 900,000 households. Some organizations, such as the Nevada Clean Energy Fund, argue that funds were legally obligated under valid contracts, and the termination violates EPA's own terms and congressional intent.
Legal challenges are likely due to claims of contractual violations and Congressional intent to fund the program. Affected recipients and advocacy groups are preparing or expected to pursue legal actions to restore access to the terminated grants. For example, the Nevada Clean Energy Fund anticipates legal responses, arguing the termination breaches contractual obligations and harms communities relying on clean energy investments. Advocacy groups like Earthjustice condemn the EPA’s move as an abandonment of vital climate and equity goals and imply forthcoming legal pushback to protect communities and funding under the Inflation Reduction Act.
The termination is widely criticized as harmful to low-income communities, clean energy goals, and climate justice. Sach Constantine, executive director at Vote Solar, stated that the EPA's decision to cancel Solar For All grants is alarming, and the projects funded by the program are "shovel-ready."
The One Big Beautiful Bill, passed by the Trump administration, has eliminated or curtailed much of the clean energy funding in the Inflation Reduction Act. This move by the EPA is likely to invite strong legal challenges.
The Solar For All program had provided funding for various purposes, including residential zero-interest loan initiatives for solar and mobilizing financing for community development financial institutions and rural electric cooperatives. For instance, EnergizeNC received a $156.1 million Solar for All grant, earmarked to transform solar growth in North Carolina.
The best of Utility Dive's coverage of emerging trends in electricity supply and demand and the decisions being made today that will impact the power system for years to come is brought together in the "The state of electricity supply and demand" trendline. The Solar For All program was not the only initiative affected by the One Big Beautiful Bill. Other Solar For All funding recipients include the Massachusetts Department of Energy Resources and the Bonneville Environmental Foundation.
The Georgia BRIGHT no-cost solar program, created by Solar For All funding recipient The Capital Good Fund, saw nearly 500 households sign up within 24 hours of its launch. The Solar For All program had provided funding to 60 grantees across the country, aiming to make a significant impact on energy access and costs for low-income communities.
[1] Reuters, Tuesday [2] Earthjustice blog post, Wednesday [3] Foley Hoag, Wednesday blog post [4] Senator Bernie Sanders statement, Wednesday
- The termination of the Solar For All program has sparked a wave of criticism from environmental science organizations, with Earthjustice deriding the EPA's decision as an abandonment of vital climate and equity goals.
- The Nevada Clean Energy Fund is preparing legal responses, arguing that the termination of the Solar For All grants breaches contractual obligations and harms communities relying on clean energy investments.
- The Solar For All program was not just about providing renewable energy, but also aimed to mobilize financing for business ventures, including community development financial institutions and rural electric cooperatives, such as EnergizeNC in North Carolina.
- The One Big Beautiful Bill, passed by the Trump administration, has not only terminated the Solar For All program but has also eliminated or curtailed much of the clean energy funding in the Inflation Reduction Act, impacting various initiatives, like the Massachusetts Department of Energy Resources and the Bonneville Environmental Foundation.
- The cancelled Solar For All grants will affect not only the environmental-science and renewable-energy industry but also the data-and-cloud-computing sector, as the programs were designed to invest in technologies that optimize energy usage and drive efficiency in the business world.
