Feb 25, 2025
Lima Hossain
Low-income American households spend 8.6% of their income on energy bills—nearly triple the 3% spent by higher-income families. This disparity reflects a persistent gap in clean energy access across the country.1 With Solar for All (SFA), the promise is simple but transformative: bring solar power to nearly one million American households that have been historically left out of the clean energy transition.2 This $7 billion federal program represents the nation’s largest-ever investment in making clean energy accessible to low-income and disadvantaged communities across the U.S. (Figure 1).
Figure 1: Solar for All funds awarded
The program emerged from President Biden’s landmark climate legislation, the Inflation Reduction Act (IRA), to support clean energy projects. The Environmental Protection Agency (EPA) oversees this ambitious effort, but now, less than a year into implementation, this transformative program faces an uncertain future due to a recent Executive Order.
The stakes couldn’t be higher. EPA’s SFA program was designed to reduce this energy inequality by requiring a minimum 20% reduction in energy costs for participants.3 Beyond individual savings, the program is aimed to reshape how clean energy benefits are distributed in our society.
A Program Built for Impact
The funds distributed through SFA reflect its ambitious goals. The EPA distributed $7 billion across 60 recipients, including 31 state organizations, 22 nonprofit organizations, 6 tribal organizations, and 1 municipal government.4 This diverse mix of grantees ensures the program can reach communities through trusted local partners who understand their specific needs (Figure 2).
Figure 2: Percent of Funding Awarded by Recipient Type
The largest single awards of $249.8 million each went to the California Infrastructure Economic Development Bank, New York State Energy Research and Development Authority, and GRID Alternatives for their multistate affordable housing program. Several states received standard allocations of $156.12 million, while tribal grants averaged around $62.45 million, with a total tribal allocation of approximately $375 million.5
The funding is used to implement a comprehensive approach. Beyond just installing solar panels, SFA requires grantees to develop strong consumer protection frameworks, workforce development strategies, and community engagement plans. The program explicitly prioritizes disadvantaged and low-income communities, including environmental justice communities and affordable housing residents.
The expected impact numbers also tell a powerful story:6
- Expected reduction of over 30 million metric tons of CO2 emissions (equivalent to taking 7 million cars off the road)
- Average household savings of ~$400 annually on electricity bills
- Total household savings projected at over $350 million annually
- More than $8 billion in cumulative savings over a standard 25-year solar project life
- Deployment of over 4 GW of distributed solar energy for low-income communities
Navigating Uncertainty and Early Success Stories
However, the recent funding freeze has created uncertainty , both for current projects and the entire implementation pipeline. Many grantees were preparing to deploy their funds this year and the freeze has forced many to pause these efforts, potentially delaying critical benefits for communities that need them most.
The funding freeze has also sparked broader policy action at multiple levels of government. Several members of Congress who serve on the appropriations committees have demanded answers about the funding freezes, highlighting how the situation could “devastate programs that protect public health and the environment while increasing costs for families.”7 Additionally, in Pennsylvania, state representative Elizabeth Fiedler has introduced legislation to protect the state’s $156 million allocation8, highlighting how SFA is mobilizing support at the state level.
On the ground, the program is already changing lives, and some communities are already seeing results. In January 2025, the nonprofit Indigenized Energy announced that the Chippewa Cree Tribe and the Oglala Sioux Tribe have completed their first solar installations, delivering approximately 8 kW of clean, low-cost power to participating homes. These initial projects demonstrate how SFA can work when communities have the resources and support they need.
Looking Forward – Why Energy Justice Matters
Solar for All is more than just a funding program – it’s a vital tool for advancing energy justice. Our energy system has historically placed the greatest burdens on disadvantaged communities while offering them the fewest opportunities to benefit from clean energy innovations. SFA aims to redirect these benefits where they are needed most.
The program’s design ensures benefits flow to communities through multiple channels:
- Direct energy cost savings for households
- Job creation and workforce development opportunities
- Improved community resilience and energy independence
- Reduced pollution in historically overburdened areas
- Enhanced energy infrastructure in underserved regions, including rural and tribal communities
Even amid uncertainty, SFA’s framework shows us what an inclusive clean energy future could look like. The program integrates frameworks for community engagement, establishes partnerships between diverse stakeholders, and demonstrates what’s possible when resources match community needs. Some communities, from tribal nations to state governments, are actively working to preserve their SFA initiatives. While the path forward may be complicated, the drive toward energy justice continues.
The coming months will be critical for SFA’s future. But regardless of what happens with federal funding, the program has already changed the conversation about who benefits from clean energy investments and how those benefits should be distributed.
For communities interested in supporting clean energy access, there are several ways to stay engaged:
- Support state and local clean energy initiatives
- Share success stories from existing projects
- Connect with community-based organizations or local organizations working on energy justice
- Advocate for continued investment in equitable clean energy access
The fight for energy justice and clean energy access continues. SFA illustrates what’s possible when we invest in making clean energy work for everyone – now it’s up to us to protect and build on that progress.
Endnotes
1. U.S. Department of Energy, Low-Income Energy Burden Analysis, 2024. https://www.ncsl.org/energy/low-income-renter-energy-efficiency-toolkit#:~:text=According%20to%20DOE’s%20Low%2DIncome,be%20as%20high%20as%2030%25 The original Low-Income Energy Affordability Data (LEAD) Tool is no longer available on the DOE website. (last visited Feb. 25, 2025)
2. EPA Solar for All Factsheet: “Solar for Household Savings Highlights,” January 22, 2025 https://www.epa.gov/greenhouse-gas-reduction-fund/solar-all-solar-household-savings-highlights (last visited Feb. 25, 2025)
3. EPA Solar for All Program Requirements and FAQs, 2024. https://www.epa.gov/greenhouse-gas-reduction-fund/frequent-questions-about-solar-all#national (last visited Feb. 25, 2025)
4.EPA Solar for All, August 16, 2024. https://www.epa.gov/greenhouse-gas-reduction-fund/solar-all (last visited Feb. 25, 2025)
5. Ibid
6. EPA Solar for All Fast Facts, January 22, 2025 https://www.epa.gov/greenhouse-gas-reduction-fund/solar-all-fast-facts (last visited Feb. 25, 2025)
7. “EPA funding freeze endangers $7B Solar For All program,” Utility Dive, February 6, 2025 https://www.utilitydive.com/news/epa-funding-freeze-solar-for-all-inflation-reduction-act-trump/739459/ (last visited Feb. 25, 2025)
8. Ibid