EPA Tries to Claw Back Solar for All Funding

EPA Trying to Cancel Solar for All Funding

What’s new

The Environmental Protection Agency is drafting letters that would void $7 billion in Solar for All grants the agency awarded last year to 60 states, tribes, and nonprofits.

Why it matters

That money was earmarked by the Inflation Reduction Act and intended to bring rooftop and community solar projects to more than 900,000 low-income households. Funding was briefly frozen in February by Trump’s Administration, released after a federal court order in March, and now faces full cancellation under the Trump administration’s One Big Beautiful Bill Act.

The rollback would halt shovel-ready projects in 49 states and claw back money that grantees have already begun to spend on program design and community outreach.

Advocates say lawsuits are inevitable; the Southern Environmental Law Center warned the administration that “we will see them in court” if termination proceeds. Critics call the move self-defeating.

“Solar energy is cheaper, cleaner, and more reliable than dirty fossil fuels. By rescinding these grants, Donald Trump is denying our most vulnerable communities a resource that would have helped alleviate their financial burdens,” said Patrick Drupp of the Sierra Club.

The EPA declined to confirm the decision but said it is “working to ensure Congressional intent is fully implemented” under the new budget law.

Wood Mackenzie Predicts Temporary Solar Slowdown

What’s new

Wood Mackenzie’s new report on the One Big Beautiful Bill Act (HR-1) says that ending the Section 25D investment tax credit will reduce U.S. residential-solar additions by up to 46% through 2030 compared with the firm’s previous projections from last year.

The firm now expects installations to decline until 2028, then resume growth as the market adjusts.

Why it matters

Removing the homeowner tax credit will make rooftop solar less affordable in the short term. This will force some inexperienced installers out of business and reduce the number of homeowners interested in going solar.

Thankfully, with falling solar component prices and ever-increasing energy prices, the long-term outlook of solar energy remains optimistic.

Wood Mackenzie projects the long-term opportunity remains large: nearly 1,500 GW of technical potential by 2050, with at least 150 GW added even in a conservative scenario. Rising retail electricity rates and future component cost declines are expected to restore growth after the near-term disruption.

Sources

EPA attempts to terminate $7 billion of Solar for All grants

EPA considers terminating $7B Solar For All program | Utility Dive

WoodMac: US residential solar will take big hit but rebound by 2028

The US residential solar total addressable market will exceed the current US generation fleet | Wood Mackenzie

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