EPA Launches $7 Billion Competition to Bring Low-Cost Solar Energy to More Hard-Working American Families

Today, the U.S. Environmental Protection Agency (EPA) launched a $7 billion grant competition through President Biden’s Investing in America agenda to increase access to affordable, resilient, and clean solar energy for millions of low-income households. The Solar for All competition, which was created by the Inflation Reduction Act’s Greenhouse Gas Reduction Fund, will award up to 60 grants to states, territories, Tribal governments, municipalities, and nonprofits to create and expand programs that provide financing and technical assistance, such as workforce development, to bring residential solar to low-income and disadvantaged communities. EPA Administrator Michael S. Regan announced the grant competition today with U.S. Senator Bernie Sanders (VT) in Waterbury, Vermont while touring a residential solar project.  

EPA’s Solar for All competition is just the latest way that the Inflation Reduction Act is expanding access to solar for hard-working American families. Solar is the cheapest form of power available, so it helps lower energy costs while creating good-quality jobs, advancing environmental justice, and tackling the climate crisis.

The Inflation Reduction Act is increasing access to solar by:

• Incentivizing solar deployment in underserved communities: The Inflation Reduction Act enacts ten years of Production Tax Credits (PTC) and Investment Tax Credits (ITC) for clean energy technologies, including solar. A project or facility can earn bonus credits if it meets Davis-Bacon prevailing wage registered apprenticeship requirements, meets certain domestic content requirements, and/or is located in an energy community. On top of the 30 percent ITC, developers can earn a 20 percent bonus credit for wind and solar projects in low-income communities—a powerful incentive to funnel new investment and create good-quality jobs in underserved communities.

• Providing first-time access to clean energy tax credits: Thanks to a provision in the Inflation Reduction Act called elective pay (also referred to as “direct pay”), tax-exempt and governmental entities—such as states, local governments, Tribes, territories, and nonprofits—can, for the first time, receive a payment equal to the full value of tax credits for building qualifying clean energy projects. Solar projects in low-income and energy communities are eligible for direct pay. You can learn more about how to claim direct pay at cleanenergy.gov/directpay.

• Lowering rooftop solar installation costs for families: The Inflation Reduction Act’s Residential Clean Energy Credit takes 30 percent off the installation of rooftop solar and other home clean energy technologies, including wind, geothermal, and battery storage. In addition, families will be able to claim rebates for home energy efficiency improvements, including rooftop solar. By making the upfront cost of solar more affordable, more American families can lower their utility bills by hundreds of dollars per year, keep their lights on during extreme weather, and help improve air quality and public health.

• Bringing solar to affordable housing: The Inflation Reduction Act invests$1 billion in the Green and Resilient Retrofit Program at the Department of Housing and Urban Development (HUD), which provides funding to the owners of HUD-assisted multifamily properties for clean energy and sustainability projects, including solar.