Federal Axe Slashes $117 Million From Indiana’s Low-Income Solar Dreams

A major setback has hit thousands of Indiana families hoping to save on energy bills through solar power. The federal government has canceled $117 million that was meant for solar initiatives for low-income households across the state. This funding cut affects an estimated 70,000 homes that were set to receive energy bill relief and access to clean energy.

The money was part of the National Solar For All program, which cost $7 billion nationwide before recent legislation eliminated it. The Environmental Protection Agency (EPA) has sent termination letters to organizations, giving them 120 days to respond or appeal the decision. The announcement was made by EPA Administrator Lee Zeldin on the social media platform X.

The canceled program aimed to reduce electricity bills by 20% for participants. It also planned to create clean energy jobs and help residents in older, inefficient homes who face high energy costs. The program would have made solar power accessible to families who couldn’t otherwise afford it.

Currently, an average solar installation in Indiana costs $14,280 for a 5 kW system after incentives. These systems can save homeowners about $1,087 per year on electricity bills, with an eight-year payback period. Each system also cuts annual carbon dioxide emissions by 6.09 tons.

Indiana ranks 15th in the nation for solar capacity, with over 497,000 homes using solar power. This setback comes despite the fact that renewable sources now power nearly 30% of global electricity generation. The state’s solar industry has attracted $5.2 billion in investment over the last decade and supports more than 4,200 jobs.

Organizations like Solar Opportunities Indiana are considering legal action to restore the funding. Alison Becker from the organization confirmed they received an official termination letter from the EPA. The EPA has given groups three options: challenge the decision legally, close their programs, or find private funding to continue their work.

For low-income residents, the funding cut is especially harmful. These households often live in energy-inefficient homes with higher utility costs. Without the federal program, many families will continue to face high energy bills and miss out on the benefits of clean solar power that more affluent Hoosiers can afford.