Vermont's Solar For All Program Now Paused Until Further Notice
On August 7, 2025, the Vermont Public Service Department (PSD) temporarily paused all activities related to the "Solar For All" program after receiving an unexpected termination notice from the EPA.
Vermont's plan to use a $62 million federal grant to expand solar energy access for low-income residents is on hold. On August 7, 2025, the Vermont Public Service Department (PSD) paused all activities related to the "Solar For All" program after receiving an unexpected termination notice from the U.S. Environmental Protection Agency (EPA). This move affects not just Vermont but all grant recipients across the country.
Why Was the Program Halted?
According to an email sent to program stakeholders by Andrew Perchlik of the Vermont Public Service Department, the EPA terminated the awards due to language in a new federal law.
The termination letter cited US House Bill 1 (H.1) of 2025, which was signed into law on July 4, 2025. The EPA notified all states and organizations that were awarded Solar For All grants that their funding was being cut as a result of the new legislation. The funds for the program were originally part of congressionally approved and obligated funds, leading state officials to question the legality of the termination.
How is Vermont Responding?
The State of Vermont is actively fighting the decision. The PSD, under the direction of Governor Phil Scott, views the EPA's move as a "wrongful termination of a signed grant agreement."
In response, Vermont has taken several official steps:
Filed a Notice of Administrative Dispute with the EPA.
Submitted a notice of objection to formally challenge the attempt to terminate the award.
Collaborating with the Vermont Attorney General’s Office to explore all legal options.
The state is also communicating with other Solar For All awardees to coordinate a response and is considering joining litigation to have the EPA's termination overturned. The primary goal is to regain access to the promised $62 million award intended to benefit Vermonters.
What Happens Next?
The Solar For All program is officially paused indefinitely. All work has stopped pending the outcome of the state's dispute with the EPA. The Vermont Public Service Department is committed to recovering the funds and has stated it hopes to provide a positive update soon. For now, the future of the program depends on the success of the legal and administrative challenges being mounted by Vermont and other affected states.