US targets Solar For Low Income Households With $7 Billion Grants Competition

By Saur News Bureau/ Updated On Tue, Jul 4th, 2023

Highlights :

The US move is an innovative way to provide solar access to communities that have been left out till now.
The design and success of this programme could provide vital pointers to other countries with a federal structure, include the developing world.

US targets Solar For Low Income Households With $7 Billion Grants Competition

US SOlar grant competition

After giving a fillip to utility scale solar and solar manufacturing through the Inflation Reduction Act, the US is now focusing on the one aspect of solar power that has been a challenge. Providing low income families the option to go for solar. Till now, this has been an issue not just in the US but worldwide, thanks to lack of financing, availability of spaces and low awareness. To that extent, the massive US push will be keenly watched by policy makers around the world. The latest grants are under the Greenhouse Gas Reduction Fund (GGRF), itself a creation under the Inflation Reduction Act (IRA).

The $7 billion grant competition has been launched by the US Environmental Protection Agency (EPA). Applicants can apply for a grant size of a small-sized programme (US$25-100 million), a medium-sized programme (US$100-250 million), or a large-sized programme (US$250-400 million).

This latest grant competition will provide funds to expand existing low-income solar programmes, as well as develop and implement new Solar for All programmes nationwide. The focus is on community solar or community groups, with three award options to community groups around the country, representing specific states or territories, American Indian and Alaska Natives, and multi-state programmes.

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The other programme , Solar For All seeks to solve the issue of access to financing, and assuring adopters of a minimum of 20% savings on their power bills if they go for solar.

The last date for communities to apply for the grants is 26 September 2023. Grants under the Solar for All programmes will cover states, territories, tribal governments, municipalities, and eligible nonprofit recipients.

While it does not specify any domestic purchase requirement at this stage, the US push will cover energy storage as well, ensuring a far higher degree of energy autonomy than usual for solar buyers.