Background on the Program and Its Cancellation
The program, known as “Solar For All,” was established by the Inflation Reduction Act of 2022, a landmark climate legislation signed by former Democratic President Joe Biden.
Under the administration of President Donald Trump, the government decided to cancel a $7 billion program designed to bring solar energy to rooftops of low-income and disadvantaged communities across the United States.
Program Details
- The program aimed to assist over 900,000 households in reducing their annual electricity bills by hundreds of dollars.
- Sixty beneficiaries, a mix of state agencies and non-profit organizations, had already been selected from both Democratic and Republican majority states.
Reasons for Cancellation and Controversy
According to a video posted on X by Lee Zeldin, the Administrator of the Environmental Protection Agency (EPA), the “Great and Beautiful Act” from last month repealed the Reduction of Greenhouse Gas Emission Fund, which financed “Solar For All”.
Zeldin claimed, without providing specifics, that program funds were being diverted by administrative costs of intermediaries and called the scheme a “scam”.
He also criticized the exemption from requirements to purchase American products, stating it was “great news for China.”
Only $53 million out of the committed $7 billion had been spent, according to an analysis by Atlas Public Policy.
Reactions and Consequences
- Tom Taylor, policy analyst at Atlas, stated that there was a general consensus that once contracts were signed, the committed funds could not be recovered. “However, the Trump administration is now testing this theory,” he said.
- Adam Kent, Green Finance Director at the Council for Natural Resources Defense, commented: “President Trump promised to halve energy bills, but once again his administration is trying to make home maintenance and electricity more expensive.”
- Bernie Sanders, the progressive senator, accused Trump of acting to protect the interests of the fossil fuel sector.
“Donald Trump wants to illegally eliminate this program to protect the exorbitant profits of his friends in the oil and gas industry,” Sanders declared, vowing to “fight to preserve this crucial program.”
Government’s Broader Climate Policy Changes
The Trump administration has collaborated with Congress to repeal tax credits for wind and solar energy, tighten restrictions on federal leases for renewable energy projects, and rescind designated offshore wind energy areas.
They have also proposed eliminating greenhouse gas emission regulations for power plants and vehicles, and released a report suggesting that these greenhouse gases could be beneficial.
