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The cancellation of the Solar for All grant program by the Trump administration has impacted Massachusetts, which was a significant intended recipient of the $7 billion federal initiative. The state was due to receive more than $156 million from the program, which could have helped about 29,000 households lower their electricity bills by 20% and added 125 megawatts of solar energy across the state. The funds, which were authorized by the Inflation Reduction Act passed by the Biden administration in 2022, were designed to speed up the clean energy transition while creating jobs.
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Termination of Solar for All Program Poses Challenge to Massachusetts’ Clean Energy Transition
“The termination of the Solar for All program has turned a simple hike into more of a mountain climb,” remarked the President of the Boston Community Solar Cooperative, King.
Massachusetts was meant to be one of the largest beneficiaries of the $7 billion federal Solar for All grant program, with over $156 million dedicated to the state. This funding was expected to facilitate 29,000 Massachusetts households in reducing their energy bills by 20 percent, generate approximately 3,000 high-wage jobs, and add 125 megawatts of solar energy across the state, as per state officials.
According to Nick d’Arbeloff, president of the Solar Energy Business Association of New England, “Solar has been the driving force behind significant growth in electricity generation in the U.S. Hindering one of the main sources of electricity is not just irresponsible and irrational, it’s downright dumb.”
The cancellation of Solar for All was announced on X (previously known as Twitter), by EPA administrator Lee Zeldin, who dubbed the program a “boondoggle.” He asserted that the legal basis for withdrawing the funds was provided by the recently enacted tax bill of the Trump administration.
The Solar for All program was a part of the $27 billion Greenhouse Gas Reduction Fund which was established by the Inflation Reduction Act, a groundbreaking legislation for climate and clean energy enacted by the Biden administration in 2022. The fund was eliminated with the introduction of the One Big Beautiful Bill Act by Trump, taking the Solar for All program down with it.
Targeting the funds authorized by the IRA, which amount to hundreds of billions of dollars aimed at accelerating the clean energy transition and job creation, has been a key focus of President Trump’s second term.
Following an initial freeze early this year, US District Judge Loren AliKhan in Washington, D.C., issued a preliminary injunction, ordering the funds to be made accessible.
However, as the Solar for All funds are disbursed as reimbursements — only provided once a project is operational — they are yet to be accessed, since the program was not anticipated to be completed in Massachusetts until the early fall.
Condemning the Trump administration’s decision, Governor Maura Healey implored the administration to “desist any plans to terminate the Solar for All grants.”
In the meantime, Attorney General Andrea Campbell’s office is appraising legal alternatives. “The termination of the Solar for All program will inflate energy costs for tens of thousands of low-income and disadvantaged Massachusetts households who will lose access to solar benefits, annihilate the creation of green jobs across our state, and set us back from achieving our climate goals,” Campbell expressed.
In Dorchester, King is optimistic that the plans should be able to proceed — the funds have already been procured and they are simply awaiting a few final steps before initiating construction. However, it remains uncertain whether he will be able to develop more solar projects.
King’s approach is a modification of traditional community solar, where people subscribe to a solar development for a discount on their electricity rates. In Dorchester, members buy in for $100 and work about 4 hours a week for minimum wage to locate other potential sites. Once the solar array is installed on the Food Co-op, members will receive a share of the profits, and a second option will become available for those who wish to invest $1000 without the work requirement.
Some profits would also be allocated towards establishing more sites in environmental justice neighborhoods.
“The reason for the income wealth gap in Boston is that Black and brown people typically don’t own much,” King pointed out. “We’re trying to change that by essentially having people own this cash-generating asset.”
However, in order to make this model feasible, King was relying on tax credits, Solar for All, and the costs of solar panels prior to tariff.
Despite the setback, not everything is lost. The state recently overhauled its solar incentive program, making its incentives more market-responsive while expanding the benefits of solar to more low-income residents. King anticipates that this measure should offer some relief. He also remains hopeful of finding investors or other means to access low-interest financing.
“What this implies is that the projects are going to be less profitable,” King shared.
However, this doesn’t mean he’s throwing in the towel. “We’ve invested a lot of effort into this. And, regardless of the new administration, we’re going to strive to deliver on our goals.”
Sabrina Shankman can be reached at sabrina.shankman@globe.com.
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