US Farm Solar Program Gutted by New Rules, Lawsuit Follows

The US Department of Agriculture has quietly overhauled its main rural solar grant program, narrowing eligibility and cutting funding levels — and prompting a federal lawsuit from farmers and developers who say the changes unlawfully reach back to already-approved awards.

The Rural Energy for America Program once let farmers install solar systems that produced more electricity than their own operations needed, earning income by selling the surplus to the grid. Under revised rules, projects that generate surplus power, are sited on cropland, or rely on equipment from designated “foreign adversary” countries are now excluded from support.

The financial terms tightened as well. Maximum grant coverage dropped from 50 percent to 25 percent of project costs. Applicants must also wait until a system has operated for a full year before submitting a claim — meaning farmers bear the full investment risk upfront with no guarantee of reimbursement.

The new rules apply retroactively. Grants that were approved but not yet disbursed are also affected: recipients may not receive those funds and must reapply under the revised framework.

Michael Yuhana, a senior attorney at Earthjustice, said the policy harms both applicants now subject to the retroactive rules and solar developers whose market has contracted as a result. According to Canary Media, farmers and developers have filed suit seeking a court order to resume payments under the program’s original terms.

Source: Canary Media