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Court Restores $7 Billion Solar for All Program

A federal judge ruled the EPA lacked authority to cancel already awarded grants, leaving the agency to decide whether to appeal and how to restart fund disbursements.

Overview

  • A federal judge vacated the EPA’s August 2025 cancellation of Solar for All, finding the agency unlawfully rescinded grants that Congress had intended to remain in place.
  • The lawsuit was brought by a coalition of environmental groups, labor unions, legal advocates, homeowners, and solar businesses who had been prevented from getting promised funds.
  • Most of the program’s $7 billion remains undisbursed after the agency froze payments, with only about $53 million paid out to date to the 60 prime award recipients the EPA selected in April 2024.
  • Key implementation questions remain unresolved because the court did not direct operational steps, leaving uncertainty over whether existing awardees will receive funds or whether a new competition will be required.
  • If fully deployed as designed, the program was projected to deliver roughly 4 GW of distributed solar, reach about 900,000 households, cut household bills by an estimated $350 million a year, and support tens of thousands of clean-energy jobs, outcomes plaintiffs say are at stake while the EPA reviews the ruling.