Judge reinstates $7 billion Solar for All

A federal judge has overturned the US Environmental Protection Agency's cancellation of the $7 billion Solar for All programme. The ruling means the EPA must restart the programme designed to fund solar projects for low- and moderate-income households.

US District Judge Mary McElroy in Rhode Island granted summary judgment to the plaintiffs, which included labour unions, solar businesses, and nonprofits. The court found the EPA broke the law by terminating grants Congress had already obligated. The judge vacated the agency's termination order.

The court ruled the Trump Administration never should have terminated Solar for All because Congress intended it to continue, and EPA broke the law when it killed the programme and pocketed the money, said Nick Torrey, a senior attorney at the Southern Environmental Law Center.

Programme Impact and Cancellation

The Solar for All fund was established under the 2024 Inflation Reduction Act. The EPA had estimated it would reach more than 900,000 households. The programme was also projected to support roughly 200,000 jobs and workforce training opportunities.

The EPA cancelled the programme in August 2025. This followed the passage of the One Big Beautiful Bill Act. The Solar Energy Industries Association has estimated that bill could put 330,000 clean-energy jobs at risk.

Legal and Policy Context

The legal challenge argued the EPA lacked the authority to terminate already-awarded grants. Plaintiffs included Solar United Neighbors and the Rhode Island AFL-CIO. The ruling is part of a series of legal challenges to Trump administration efforts to withdraw clean-energy funding.

In January 2026, a separate US court ruled the Department of Energy's cancellation of $7.5 billion in clean-energy grants was unlawful. The federal policy shifts have prompted states to take a greater role in supporting renewable energy.

The Path Forward

The EPA said it is reviewing the ruling and considering an appeal. The decision restores the Solar for All programme, though further legal proceedings could affect its implementation.

Advocates emphasize the programme's urgency. "Electricity bills are skyrocketing, so low-cost solar projects, which guarantee big savings, are needed now more than ever," said attorney Nick Torrey. He stated the victory means the EPA must stop sitting on the funding and start getting it to communities.

Despite the volatile policy environment, US solar deployment has continued. The country added 43.2 gigawatts of solar PV capacity in 2025. Community solar capacity also surpassed 10 gigawatts. In the second quarter of 2026, the US clean power sector added 17.1 gigawatts of utility-scale solar, battery storage, and land-based wind capacity, taking the total project pipeline to a record 204.6 gigawatts.