Over 20 US states sue EPA over ‘illegal’ US$7 billion Solar For All cancellation

Facebook
Twitter
LinkedIn
Reddit
Email
California attorney general Rob Bonta said the state was owed almost US$250 million by the EPA. Image: Unsplash.

A group of over 20 US states are suing the Trump administration for the cancellation of the US$7 billion Solar For All Scheme.

Attorneys general from 20 states and representatives from three others are suing the Environmental Protection Agency (EPA) and its head, Lee Zeldin, for the “unlawful termination” and reclaiming of the Solar For All funding in August.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The Solar For All scheme was created in 2022 to fund solar deployments in low-income and disadvantaged areas. The Massachusetts state energy department has claimed the scheme would have lowered energy bills by around 20% for up to 29,000 Massachusetts residents, and US Senator Ed Markey claimed it would have enabled “more than US$8 billion in savings” on energy bills across the country.

The office of Oregon state attorney general Dan Rayfield said his state and others had moved forward with planning, development and funding for solar projects with the backing of the Solar For All scheme and the sudden removal of the funding left them without the ability to proceed.

California attorney general Rob Bonta said the state was owed almost US$250 million by the EPA for community solar and energy storage projects planned to take place under the scheme.

The states have filed two lawsuits against the EPA. The first, filed with the Court of Federal Claims, alleges that the EPA breached its contracts with the states and seeks financial compensation.

The second, filed in Washington, claims the EPA “violated the Administrative Procedure Act and the US Constitution’s Separation of Powers Doctrine” in cancelling the scheme. They said Zeldin had “falsely claimed” that the EPA had no statutory authority or dedicated funding for the scheme, although Congress never instructed the EPA to recall Solar For All funds that had already been issued.

“The cancellation of Solar for All funding is not just bad policy, it is illegal,” said Alice Reynolds, president of the California Public Utilities Commission. “These grants were lawfully appropriated by Congress and intended to help lower energy costs and transition to a clean energy supply. Revoking the funding is a destabilising decision”.

“Working families are already feeling the strain of rising energy costs—and blocking Oregon’s clean energy programs only makes that worse,” said Rayfield. “This funding wasn’t just about protecting the environment; it was about lowering bills, creating jobs, helping communities transition to cleaner, more affordable power.”

Back in February, Zeldin sought to recall US$20 billion in EPA clean energy grants under the Greenhouse Gas Reduction Fund. At the time, Zeldin—whose decisions are now being legally challenged by 20 attorneys general and public utilities commissions—criticised the EPA for “shovelling boatloads of cash to far-left, activist groups.”

PV Tech publisher Solar Media will host the 12th edition of the Solar & Storage Finance USA event on 21-22 October 2025 in New York. Panellists will discuss the fate of US solar and storage in a post-subsidy world, the evolving economics of standalone BESS and de-risking solar and storage supply chains.

All are encouraged to respond to an anonymous survey on the US solar and storage sector, that will shape discussions at the summit. Tickets for the event are available on the official website.

Read Next

July 17, 2026
US solar developer Sol Systems has reached financial close on its 123MWac Peoria Solar Portfolio in Illinois.
July 17, 2026
The Zambian government has signed five contractor groups to build 312MW of solar capacity, with a 2MW solar plant in each constituency.
July 17, 2026
Qcells has become the first company to achieve UL Standards & Engagement (UL) and the International Electrotechnical Commission (IEC) certifications for silicon-perovskite tandem solar technology.
Premium
July 17, 2026
PV Talk: Solclaris' Joe Miletic discusses the 'ready-to-repower' stage of PV project O&M and how it differs from the 'ready-to-build' stage.
July 17, 2026
German solar inverter producer SMA Solar has raised its full-year 2026 financial guidance following its preliminary Q2 financial results.
July 17, 2026
US solar PV mounting systems manufacturer Unirac has acquired the solar racking business of Terrasmart from its parent company Gibraltar Industries, expanding its product portfolio into the commercial and industrial (C&I) and distributed generation (DG) segments.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye