“I was hoping it would reduce our electricity bill and keep our house from overheating,” Nguyen told DW. Solar for All was aimed at helping low- and middle-income families install solar panels. Without it, Nguyen, who founded her own tech company to support small businesses, would struggle to cover the $12,000 to $20,000 in setup costs.
But the mother of two’s hopes of cutting her skyrocketing electricity bills with solar panels vanished when US President Donald Trump’s administration ended the $7 billion program in August. The move will affect around 900,000 families across the country.
Now, Nguyen is a plaintiff along with unions, nonprofits and solar companies seeking to have support restored. Meanwhile, a coalition of states has filed a separate lawsuit against the Environmental Protection Agency (EPA) to stop the “unlawful termination.”
As President Trump withdraws federal support for clean energy initiatives, the future of the green transition in America may depend on such state and local action, said Michelle Moore, chief executive of Groundswell, a nonprofit that leads renewable energy programs.
“That means we have to redouble our commitment and our resolve to innovate and work together and make it happen locally,” Moore said. Before Solar for All was scrapped, Groundswell was created to deploy solar power and battery storage with the aim of halving electricity costs for 17,000 homes in the southeastern US.
Federal cutbacks on renewable energy
In 2023, planet-warming fossil fuels, including oil and gas, accounted for about 60% of US electricity generation, while nuclear accounted for about 18% and renewables about 22%. Under the Biden administration, the federal government has set a goal of reaching 100% “carbon pollution-free electricity” by 2035.
But President Trump has made reversing climate-related spending a cornerstone of his second-term agenda. His sweeping tax cut and spending legislation, the One Big Beautiful Bill Act, was signed in July, accelerating the phasing out of tax credits for solar and wind projects and tightening eligibility requirements.
The federal government will no longer fund wind and solar projects on productive agricultural land. – A big blow to farmers dependent on those grants. It also canceled billions of dollars in grants for climate-related projects in Democratic-run states including California and New York. Meanwhile, the administration is blocking and canceling funding for offshore wind projects.
A renewable energy rush
Ironically, some of the administration’s actions have accelerated temporary construction as companies scramble to build before the tax-credit expires, said Matt Traldi, CEO of clean-energy nonprofit Greenlight America.
“What we’re seeing from wind and solar companies is that they’re racing to qualify all their projects for as many tax credits as possible,” Traldi told DW.
This urgency has extended to local residents and climate organizations, who are attending hearings and advocating for project approval in their communities.
But the burst of momentum may be short-lived.
“We may see an increase in deployments next year, but it’s certainly going to be a big loss over the long term,” Levin warned.
According to a report by the Solar Energy Industries Association (SEIA) and consulting firm Wood Mackenzie, federal actions targeting solar energy could reduce future deployment by as much as 55 gigawatts by 2030 – a decline of nearly 20%.
But critics say reliance on price-volatile coal and gas risks driving up fossil fuel use and increasing household electricity costs as energy demand increases.
“(These) force us to rely on dirty, old fossil plants that increase both emissions and costs,” said Amanda Levine, director of policy analysis at the Natural Resources Defense Council (NRDC), an environmental organization. For example, solar for all could save households $350 million annually on energy costs.
Trump administration ‘cannot stop market progress’
One reason for rising electricity prices is the increasing appetite for energy. In the US, a report found that demand could increase 25% by 2030 and 78% by 2050 due to increased manufacturing, expansion of data centers, and electrification of transportation and heating.
To meet demand, the US will need to add about 80 gigawatts of new power capacity every year for the next two decades. Currently, most of this is expected to come from solar, battery storage and onshore wind.
“Renewables are still the best option for businesses, for individual consumers, for utilities, and for data centers and tech companies that are trying to rapidly build new infrastructure to meet their growing AI data needs,” Levin said.
And despite the headwinds, Levin pointed to the huge pipeline of renewable energy projects that have already been announced and are waiting to be built. “The federal government can’t stop the progress of that market,” Levin said.
In 2024, renewable energy – among the cheapest sources of electricity – will account for about 90% of new installed capacity in the US. In the first half of 2025, solar power will account for 82% of all new electricity added to the grid, with most of that capacity installed in Trump-voting states like Texas, Florida and Arkansas.
Local and state action at the forefront
But as the rollbacks will impact new renewable projects, states will play a key role in preparing for the storm, NDRC’s Levin said. Many adopted ambitious clean energy standards and utility transition plans during the first Trump administration, which are still helping to drive growth.
In September, the governors of New York, Massachusetts and three other states hosting offshore wind projects issued a joint statement urging the administration to maintain green energy initiatives.
And while the federal government did not attend the UN climate conference in Brazil, 100 US state and city leaders attended. One group, America Is All In, represents two-thirds of the US population, and aims to halve emissions by 2030 without federal support.
In the Southeast, Groundswell is fighting the EPA’s decision to suspend solar for all — one of the few options left to keep its projects alive. Nevertheless, the organization continues to pursue solar and storage projects through other programs and partnerships with municipal and regional utilities, as well as local churches.
Mother and entrepreneur Anh Nguyen, who poured her energy into promoting the Solar for All program, even sharing it in her children’s school group chat and home maintenance expo, is convinced it can help other families like hers. Now, she is pinning her hopes on the courts.
“If the court is here to uphold the Constitution and the social contract between us, I’m confident they will side with me,” Nguyen said.
Edited by: Jennifer Collins
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