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State officials challenge EPA to restore millions in incentives for low-income homeowners to go solar: 'It's an appeal of the agency's decision'

It's one of the best ways to save money on energy bills.

It's one of the best ways to save money on energy bills.

Photo Credit: iStock

Oregon is refusing to let its solar dreams get eclipsed, pushing back after the Environmental Protection Agency pulled the plug on a key grant.

As reported by Oregon Public Broadcasting, Oregon's Department of Energy is formally challenging the federal government's decision to cancel its Solar For All grant, a program designed to make rooftop solar affordable for low-income families and rural residents.

Earlier this month, state officials sent a letter to the EPA, requesting that the agency reverse its decision to terminate the $86.6 million grant. The EPA halted the program in August, citing restrictions created by the recently passed budget bill. Oregon leaders argue the funding had already been obligated, meaning the federal government is legally committed to making the payments.

The Solar For All program promised major benefits: rebates for solar installations on multi-family housing, expanded community solar projects, and clean energy access for nearly 7,800 households. According to Oregon officials, canceling the grant could mean more than $83 million in lost energy savings for residents, along with fewer renewable energy jobs and higher pollution.


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"We are requesting that EPA rescind the termination and make all obligated funds that were available before August 6 available to ODOE again," Oregon Department of Energy Director Janine Benner told OPB. "So this is an administrative action, and it's an appeal of the agency's decision."

Going solar remains one of the best ways to save money on monthly energy bills while reducing climate pollution. Tools like EnergySage's free comparison service make it simple for homeowners to get quick estimates, compare quotes, and understand available incentives. 

Even with political uncertainty, switching to solar power can help households avoid rising electricity costs while supporting the transition to cleaner energy.

Energy Trust of Oregon, one of the original partners on Solar For All, has said it will continue offering its own incentives despite the setback.

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"We'll continue offering incentives that lower costs for developers of community solar projects, which can serve hundreds of families," said Betsy Kauffman, the group's renewable energy sector lead, according to Oregon Public Broadcasting

For homeowners nationwide, EnergySage offers free tools to make solar more accessible. The platform estimates the average person can save up to $10,000 on solar installations, and its mapping tool shows state-specific costs and incentives. These resources help families identify the best deals and take advantage of tax credits before they expire at the end of 2025.

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Still, not every household can afford the upfront cost of solar panels. Leasing remains a strong alternative. Palmetto's LightReach program allows families to install solar for no money down and lock in predictable, lower energy rates. Pairing panels with efficient appliances like heat pumps can cut bills even further. Companies like Mitsubishi connect homeowners with trusted installers to ensure efficient, budget-friendly heating and cooling.

Oregon officials remain hopeful that the EPA will reconsider before its February 2026 deadline to respond. 

"Anytime you remove a tool like incentives for residential solar, it just makes it that much harder," Benner said. For families hoping to cut costs and reduce pollution, the outcome of this challenge could be crucial.

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