Market update · Global
US Court Restores $7 Billion Solar for All Program Amid Policy Shifts
A federal court in Rhode Island ruled that the EPA unlawfully terminated the $7 billion Solar for All program, reinstating the initiative designed to expand solar access and reduce electricity costs for low- and moderate-income households. This ruling is part of broader legal challenges against the Trump administration's efforts to withdraw clean-energy funding, occurring alongside ongoing growth in US solar capacity despite federal policy changes.
SolTraCo market update · · 3 min readCourt Ruling on Solar for All Program
A US District Judge in Rhode Island ruled that the EPA unlawfully terminated the $7 billion Solar for All program, which was established under the Inflation Reduction Act in 2024 to expand solar access and reduce electricity costs for low- and moderate-income households. The court vacated the EPA’s termination and found that Congress intended the agency to continue administering grants that had already been obligated.
The legal challenge was brought by labor unions, solar businesses, nonprofits, and other groups, who argued that the EPA lacked authority to terminate grants already awarded. The EPA is currently reviewing the ruling and considering whether to appeal.
Context of Federal Clean-Energy Policy Changes
The ruling comes amid broader changes to US solar policy under the Trump administration, including executive orders targeting key provisions of the Inflation Reduction Act and the cancellation of Solar for All in August 2025 following the passage of the One Big Beautiful Bill Act. The Solar Energy Industries Association estimated that this bill could put 330,000 clean-energy jobs at risk.
Similar legal challenges have been made against the administration’s efforts to withdraw previously awarded clean-energy funding, including a January 2026 ruling that found the Department of Energy’s cancellation of $7.5 billion in clean-energy grants unlawful.
Solar Market Developments Amid Policy Uncertainty
Despite the shifting federal policy environment, the US solar market continues to grow. In 2025, the US added 43.2 GW of solar PV capacity, and community solar capacity surpassed 10 GW despite a slowdown in early 2026. In Q2 2026, the American Clean Power Association reported 17.1 GW of utility-scale solar, battery storage, and land-based wind capacity additions, bringing the project pipeline to a record 204 GW.
These developments indicate ongoing investment and deployment in clean energy at the state and industry levels, even as federal policy undergoes significant changes.
Sources
This update is an original SolTraCo synthesis of the linked industry sources. Reported facts and commercial interpretation are kept separate. It does not contain confidential deal information and is not investment, legal or technical advice.