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Sparks

Biden Hands Out $7 Billion to Expand Solar Access

The Solar For All program is the final piece of the $27 billion Greenhouse Gas Reduction Fund.

Solar panel installation.
Heatmap Illustration/Getty Images

The great promise of solar panels — in addition to their being carbon-free — is the democratization of energy. Anyone can produce their own power, typically for less than the going utility rate. The problem is that those who stand to benefit the most from this opportunity haven’t been able to access it.

That pattern could change, however, with Solar for All, a $7 billion program under the Environmental Protection Agency to support solar in low- to moderate-income communities. On Monday, the Biden administration announced it was awarding the funds to 60 state and local governments, tribes, and national and regional nonprofits, at an average grant size of more than $80 million.

The funding will be used to design new programs and bolster existing ones that subsidize the cost of rooftop solar installations, community solar projects and battery storage. During a press call on Friday, the administration said the awardees have committed to deliver at least 20% utility bill savings to the households they serve.

To get a sense of how transformative Solar for All could be, it’s helpful to look at the numbers. According to Department of Energy data, low- to moderate-income households spend an average of 6% of their income on energy, with some paying as much as 30%, whereas households at higher income levels spend an average of just 2%. As much as a quarter of the country reports having struggled to pay electric bills, sacrificing basic needs like food and medicine or keeping their homes at unsafe temperatures because of energy concerns.

The number of these households installing rooftop solar has been increasing steadily year over year, but in 2022, they still made up only about 22% of installations, though they represent about 43% of the population.

The disparity is largely due to the high up-front cost of a solar installation, plus the fact that lower-income Americans are less likely to own their homes. While there’s a federal tax incentive to bring down the cost, low-income households may not have the tax liability to take advantage of it. They also are more likely to live in older homes that require roof repairs, the cost of which are often not covered by incentive programs.

Solar for All represents a potential step change. In at least 25 of the states and territories awarded through the program, there are no pre-existing low-income solar programs. The EPA estimates that the funds will help more than 900,000 households see the benefits of solar. It will also increase resilience in low-income communities during power outages by giving more households access to backup batteries.

Biden and his cabinet are taking a victory lap this week in honor of Earth Day, with a national tour of events and announcements related to the president’s climate and environmental record. In addition to Solar For All, the administration also launched a new web portal for the American Climate Corps on Monday, which lists nearly 2,000 training and job opportunities in fields like solar installation and mangrove restoration.

With this $7 billion heading out the door this summer, Biden will soon have distributed the full $27 billion that Congress allocated to a program called the Greenhouse Gas Reduction Fund two years ago when it passed the Inflation Reduction Act. The initial $20 billion was awarded in early April to launch a national network of green banks that will provide low-cost loans and other affordable finance options for climate adaptation and mitigation initiatives.

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Sparks

Solar for All May Be on the Chopping Block After All

The $7 billion program had been the only part of the Greenhouse Gas Reduction Fund not targeted for elimination by the Trump administration.

The EPA blocking solar power.
Heatmap Illustration/Getty Images

The Environmental Protection Agency plans to cancel grants awarded from the $7 billion Solar for All program, the final surviving grants from the Greenhouse Gas Reduction Fund, by the end of this week, The New York Times is reporting. Two sources also told the same to Heatmap.

Solar for All awarded funds to 60 nonprofits, tribes, state energy offices, and municipalities to deliver the benefits of solar energy — namely, utility bill savings — to low-income communities. Some of the programs are focused on rooftop solar, while others are building community solar, which enable residents that don’t own their homes to access cheaper power.

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Grassley Holds Up Trump Treasury Nominees to Protect Renewables Development

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John Curtis and Charles Grassley.
Heatmap Illustration/Getty Images

Iowa Senator Chuck Grassley wants “begin construction” to mean what it means.

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Interior Order Chokes Off Permits for Solar and Wind on Federal Lands

The department creates a seemingly impossible new permitting criteria for renewable energy.

Doug Burgum.
John McDonnell/Getty Images

The Interior Department released a new secretarial order Friday saying it may no longer issue any permits to a solar or wind project on federal lands unless the agency believes it will generate as much energy per acre as a coal, gas, or nuclear power plant.

Hypothetically, this could kill off any solar or wind project going through permitting that is sited on federal lands, because these facilities would technically be less energy dense than coal, gas, and nuclear plants. This is irrespective of the potential benefits solar and wind may have for the environment or reducing carbon emissions – none of which are mentioned in the order.

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