The U.S. Environmental Protection Agency (EPA) has terminated the $7 billion Solar for All program, ending $117 million in funding for clean energy in Indiana.
The decision will end a nationwide initiative designed to expand solar access for low- and moderate-income households. Indiana will lose more than $117 million in funding that was expected to bring renewable energy, storage solutions and community resilience projects to thousands of residents across the state.
The repeal, announced Aug. 7 by EPA Administrator Lee Zeldin, stems from the passage of President Donald Trump’s “One Big Beautiful Bill,” which repealed the Greenhouse Gas Reduction Fund. The EPA said that the provision stripped the agency of authority to continue administering Solar for All. The program, created under the Inflation Reduction Act in 2022, was one of the Biden administration’s largest investments in clean energy for disadvantaged communities.
Indiana was among 60 recipients nationwide selected to receive funds earlier this year. The state’s Solar Opportunities Indiana coalition, led by the Indiana Community Action Association, had planned projects ranging from residential rooftop solar to resilience hubs equipped with backup power for emergencies. Local partners, including Black Sun Light Sustainability, were set to carry out much of the work on the ground.
Black Sun Light Sustainability, which was awarded a sub-grant to install home solar systems, establish solar energy cooperatives and build resilience hubs, expressed frustration with the cancellation.
CEO and founder Denise Abdul-Rahman said the loss of funds not only violates the grant agreement but also disrupts plans to deliver immediate benefits to Indiana households.
“The claw back of these SOI funds will significantly impact the implementation of these programs as BSLS will now have to spend valuable time sourcing new capital, which will make it much more difficult to take advantage of the expiring Solar Investment Tax Credit (ITC), which requires systems to be installed by the end of 2027,” Abdul-Rahman said.
The Solar for All initiative was projected to lower household energy bills by an average of 20%, according to the coalition. Those savings would have been particularly significant as Hoosiers continue to see rising utility costs. A recent report found Indiana households are paying nearly 17.5% more for electricity this year compared to last, with bills climbing by an average of $28 per month.
Beyond lowering bills, the Indiana program was designed to train residents in solar installation and clean energy technologies, creating new job opportunities while supporting small businesses in the state’s growing renewable energy sector. Advocates also emphasized the resilience benefits of the program, particularly for rural and historically marginalized communities vulnerable to grid failures or extreme weather.
Nationally, the cancellation affects more than $7 billion in projects, of which only about $53 million had been disbursed. Environmental groups and several states have signaled potential legal challenges, arguing that many of the grants were contractually obligated and cannot be rescinded retroactively. The Southern Environmental Law Center has already vowed to challenge the decision in court if necessary.
Lawmakers and clean energy advocates have also criticized the repeal. They argue it undermines efforts to address climate change, reduces energy affordability for working families and stalls the country’s progress toward renewable energy adoption.
Despite the setback, Abdul-Rahman said her organization will continue advocating for equitable climate solutions.
“Indiana’s communities deserve access to affordable, reliable and resilient clean energy. The urgent need for clean energy, community resilience and climate action cannot wait,” she said in the statement.
Contact Health & Environmental Reporter Hanna Rauworth at 317-762-7854 or follow her on Instagram at @hanna.rauworth.
Hanna Rauworth is the Health & Environmental Reporter for the Indianapolis Recorder Newspaper, where she covers topics at the intersection of public health, environmental issues, and community impact. With a commitment to storytelling that informs and empowers, she strives to highlight the challenges and solutions shaping the well-being of Indianapolis residents.
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