Federal court strikes down EPA cancellation of $7 billion Solar for All program

A federal judge has revived Solar for All, a $7 billion program meant to help lower-income households get rooftop solar and battery storage. The EPA had tried to cancel the program in August 2025, but U.S. District Judge Mary S. McElroy ruled the shutdown was unlawful, since Congress meant for the money to keep flowing. The ruling clears the way for the program to start up again.

Solar for All was created under the 2022 Inflation Reduction Act. It sends money to state energy offices, tribal governments, and nonprofits, which then pass funds on to local solar installers and homeowners. Most of the money — 80 to 85 percent — goes toward direct help like upfront subsidies or low-interest loans, with the rest covering things like roof repairs, electrical panel upgrades, and weatherization (sealing and insulating a home to cut energy waste) needed before solar can go in. Every funded project has to guarantee at least a 20 percent cut in electricity bills for participating households, with estimated average savings of about $33 a month.

The EPA had projected the program would eventually reach more than 900,000 households nationwide and install over 4 gigawatts of solar capacity. Before the shutdown, only a small fraction of the $7 billion had actually reached recipients. With the court order now in place, the agency is expected to resume distributing the funds, though how quickly that happens — and what it means for any specific state program — will depend on the EPA's next steps. Homeowners curious about eligibility can check whether their state has a Solar for All allocation once distributions restart.