The lawsuit, filed yesterday alongside 22 other states, seeks to restore a total of $7 billion nationwide, with North Carolina's share of over $150 million intended to lower energy costs for thousands of low-income and rural households. The program was projected to create 140 new energy jobs, particularly in rural areas.
Attorney General Jackson stressed the negative impact of the cancellation on the state’s most vulnerable residents. “These funds were going to help low-income and rural North Carolinians save money on their energy bills,” Jackson said. “Thousands of families were going to have the option to install solar power, save money, and have another energy option after a major storm. Now the EPA has illegally cancelled those funds – so I’m going to court to bring $150 million back to our state.”
The funding would have helped more than 12,000 low- and medium-income families in the state install rooftop solar panels, allowing them to save an estimated 20 percent on their monthly utility bills. Department of Environmental Quality Secretary Reid Wilson underscored the program's benefits, stating: “The U.S. EPA’s cancellation of North Carolina’s $150 million Solar for All program would eliminate the installation of rooftop solar panels for more than 12,000 low- and medium-income families.”
The cancellation was met with dismay by local industry leaders who were preparing for the program's launch. In a letter to Attorney General Jackson, solar energy business leaders wrote that the funding cuts would “deny small businesses the benefits of those investments that they have planned for in anticipation of the program.”
The "Solar for All" program was established in 2022 through the Inflation Reduction Act (IRA). After a rigorous application process, North Carolina was awarded $156 million in July 2024. However, the EPA unilaterally canceled the grant agreements in August of this year, stating it no longer had a “statutory basis or dedicated funding” for the program—a claim the attorneys general argue is false.
The states filed the primary complaint in the U.S. District Court for the Western District of Washington, alleging that the EPA violated the Administrative Procedure Act and the U.S. Constitution’s Separation of Powers Doctrine. Attorney General Jackson also joined a second lawsuit in the U.S. Court of Federal Claims, arguing that the EPA breached the clear terms of the grant agreements and violated the duty of good faith.
The lawsuits aim to compel the EPA to restore the funds, allowing North Carolina to proceed with providing affordable, clean energy options, bolstering grid reliability, and creating new economic opportunities across the state.
WNCTimes