Federal government plans to rescind $7 billion in funds designated for solar energy projects
In a move that has sparked controversy and legal opposition, the Environmental Protection Agency (EPA) under the Trump administration is preparing to terminate $7 billion in federal grants for the Solar for All program. This decision comes after the EPA, under Administrator Lee Zeldin, terminated previously obligated funds for the Biden-era Solar for All program, citing that the program's statutory authority was repealed by the "One Big Beautiful Bill Act" (OBBBA).
The Solar for All program, initiated under the Biden administration, was designed to serve 900,000 households over the next five years, helping low- and moderate-income homeowners go solar and expanding community solar initiatives. The termination of the program's funding is seen by many as a significant blow to clean, affordable energy access for thousands of households and a delay to ready-to-go projects.
Multiple states, including Connecticut and Colorado, have denounced the EPA's action as unlawful. Connecticut’s Governor Lamont called the termination unlawful and signalled coordination with other states to counter the decision. Colorado officials have declared their intent to explore legal avenues to fight what they term an illegal termination of congressionally appropriated and obligated funds.
A coalition of over 30 U.S. Senators, led by Senators Chris Van Hollen and Sheldon Whitehouse, have formally demanded that the EPA restore funding, warning that the administration’s action violates the law by improperly rescinding funding that Congress had obligated, not merely appropriated but not yet spent. Legal experts and law firms note that termination efforts could face strong legal challenges, as many of the funds have already been obligated under binding contracts, and the EPA's statutory basis for termination is disputed.
The Solar for All program, despite reaching only a small fraction of its intended households, has already made a significant impact in the communities it has served. The move would escalate the Trump administration's efforts to claw back billions of dollars in grants awarded under the 2022 Inflation Reduction Act, including those for the Solar for All program.
Notably, the Solar for All program, led by Indigenized Energy, completed the country's first two projects in October 2024, benefiting the Chippewa Cree Tribe in Montana and the Oglala Sioux Tribe in South Dakota. The participating households were expected to collectively save over $350 million each year on utility costs.
The termination letters are being drafted by the EPA, and it is expected they will be sent out by the end of this week. If finalized, the move would draw legal challenges from the grant recipients, with households that have already installed solar panels through the Solar for All program unlikely to be affected by any repeal effort, experts said.
Meanwhile, Michelle Moore, CEO of Groundswell, received a roughly $156 million grant and is using it to provide free rooftop solar panels to about 800 Georgia households, with qualifying households being randomly selected in raffles. The Georgia Bright Communities Coalition, a grant recipient in a Republican-led state, opened an initiative on Monday to provide free solar panels to 800 households, potentially reducing their monthly electric bills by up to 70%.
The Trump administration's decision to terminate the Solar for All program funding has been met with strong opposition, with many arguing that the termination is unlawful because it rescinds obligated funds, not just unobligated balances. As the legal challenges unfold, the future of the Solar for All program remains uncertain.
- Environmental science students have shown interest in analyzing the implications of the termination of the Solar for All program on the community, environment, and environmental-science fields, as it could potentially impact the widespread adoption of solar energy.
- Despite the termination of the Solar for All program, communities across the nation continue to promote the use of solar energy in sports facilities, such as the Georgia Bright Communities Coalition's initiative to provide free solar panels for 800 households, hoping to lower their monthly electric bills and contribute to cleaner, more sustainable sports environments.
