US President Joe Biden marked Earth Day on April 22, 2024, by announcing the recipients of the $7 billion Solar for All program of the US Environmental Protection Agency (EPA) that aims to boost residential solar adoption among low-income households in the country.
It is expected to install more than 4 GW of solar energy capacity over the next 5 years.
EPA launched the call for the $7 billion grant program in June 2023 to help expand the reach of solar to low-income households and disadvantaged communities (see EPA Issues Call For Solar For All).
Out of the 60 selections made under the EPA call, a total of $5.5 billion are allocated as 49 state-level awards, 6 awards for the tribes totaling more than $500 million, and 5 multistate awards adding up to around $1 billion. All the winners are listed on the EPA website.
The winners will serve households in all 50 states, the District of Columbia, Puerto Rico, and territories and also increase access to solar for tribes. Grants and low-cost financing to be allocated for the residential segment are aimed at helping overcome financial barriers to deployment as well as the challenges related to siting, permitting and interconnection.
The EPA believes this grant money will enable more than 900,000 households in low-income and disadvantaged communities to deploy and benefit from distributed solar energy. It will enable them to generate over $350 million in annual savings on their electricity bills for overburdened households.
EPA Administrator Michael S. Regan believes the program will help save $8 billion in energy costs for families, create jobs and deliver clean air.
"Solar is the cheapest form of electricity—and one of the best ways to lower energy costs for American families," said Senior Advisor to the President for International Climate Policy, John Podesta. "Today's announcement of EPA's Solar for All awards will mean that low-income communities, and not just well-off communities, will feel the cost-saving benefits of solar thanks to this investment."
The administration says the Solar for All program will also help the country meet the Biden administration's goal of achieving a carbon pollution-free power sector by 2035, and a net-zero emissions economy by no later than 2050.
Awards to the selected applicants are expected to be finalized in the summer of 2024. The winners will begin funding projects through existing programs and launch new programs in the fall and winter this year.
Of late, the residential solar segment in the US is battling a sluggish demand with high interest rates, exacerbated by the policy changes in the country's strongest residential PV market California. Interconnection and permitting delays have also been reported by installers.
According to Wood Mackenzie and the Solar Energy Industries Association (SEIA), while the residential solar segment reported record annual additions of 6.8 GW DC in 2023, it is expected to contract 13% in 2024 (see 2023 US Solar Installations Set Record With 32.4 GW).
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