Name: Facing $32 million in federal cuts, Austin looks to self-fund rooftop solar
Uploaded: 2026-02-28T11:28:31.000Z
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In 2024 cities around the country prepared to invest in renewable energy using federal grant money.

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But as the Trump administration shifted U.S. energy policy, many of those federal grants went up in smoke.

Austin, Texas was one of the cities that lost federal funds.

The city was part of part of a 250 million dollar award for several Texas regions through the Environmental Protection Agency's seven billion dollar Solar for All program.

$32 million of that Texas money was headed straight for Austin with Solo for all we were slated to see receive over $30 million.

That would help ensure that 3,000 low income families in Austin we're able to participate and benefit from solar energy and that is huge for us.

Shortly after taking office, President Donald Trump placed federal grant funding for energy and environmental projects under review.

The EPA rescinded over 20 billion in funding for greenhouse gas reductions and announced that all $7 billion in solar for all funding would be canceled last August.

In October, another $7.6 billion was closed, clawed back from other renewable energy projects in 16 states that voted for Kamala Harris in the 2024 election.

Trump administration officials framed these decisions around responsible use of taxpayer funds.

Cutting these grants also aligns with the administration's broader energy strategy, moving away from renewable energy and investing instead in oil and gas, coal and nuclear power.

That shift away from the Biden administration's push for more wind, solar and alternative energies has sparked fierce debate around the future of U.S.

The size and scope of the Biden administration's initiatives around clean energy had no precedent.

John Quigley of the University of Pennsylvania served as a cabinet official for two Democratic governors in his state.

He says rolling back that grant funding was a mistake and places the US Firmly behind China, the world's leader at installing renewable energy.

The Trump administration has taken us out of the running for the international leadership in clean energy.

Supporters of Trump undoing Biden era policies say the government should never have spent so much on energy projects in the first place.

I don't think the government's very good at choosing the right things to invest in.

Travis Fisher of the libertarian minded think tank the Cato Institute wasn't surprised that many federal grants were rolled back because of how politicized energy funding has become.

If it's a partisan budget measure, that's the source of the funding, I wouldn't count on it.

You know, if you prefer to keep those programs and you want them to be stable, either they should come from a, you know, a bipartisan act of congress or keep it at the state and county level.

Despite losing federal grant funding, cities like Austin are not giving up on their clean energy goals.

The city's current goal is to generate 100% of its electricity from emissions free sources by 2035.

Environmental stewardship and really just a commitment to addressing climate change is a quintessential Austin value and and it's deeply embedded in how policymakers get elected and how we govern our city through solar.

Qualifying low income homeowners would have been able to apply for low cost rooftop solar installations.

It would also build community solar projects, Larger scale installations that fit in a neighborhood and benefit multiple households.

Without federal assistance, city leaders can install solar panels on city owned buildings.

Last year, the Austin city council voted to do just that.

We have a lot of buildings as a city, buildings that once again have a lot of rooftop space and not a lot of trees around them.

How can we use those buildings to put solar on there and generate more electricity for the city?

City staff are eyeing 140 properties with rooftops that could be suitable for solar, including this public library, this recreation center, and

That list of properties also includes fire and police stations, city utility buildings, and

canopies over parking lots at city parks.

The exact sites and plans are still a work in progress.

The City has received 16 bids from private solar companies to take the project on.

Planning documents show the city will decide on 75 sites to build 25 megawatts of rooftop solar, enough to power about 3,600 homes.

The city owned public utility Austin energy also rolled out a new program to increase rooftop solar on commercial buildings.

This program makes it easier for the owners of strip malls and other commercial spaces to partner with solar developers.

We will allow for that building owner to basically lease its rooftop space for someone else to come in, put solar on there, and

that way the building owner gets a little money, the solar provider gets a little money, and

the city gets more cheap electricity right here in our load zone.

Renewable energy supporters see this local first approach as crucial over the next few years.

And for critics of large federal government spending efforts, it's also an easier pill to swallow.

So I'm sure there are parts of the country where solar PV is going to do really, really well and solar plus battery storage is going to beat out other resources.

I think states, counties, towns can really get more involved as long as they're paying their own way.

For Austin, the cost of adding solar to city buildings will be a major consideration.

City officials have taken heat in recent months as voters rejected a property tax increase and the council was forced to make significant budget cuts.

Local supporters of solar highlight the potential long term return on investments.

You got these panels that last 25 plus years that with the tax credit pays themselves back in seven, eight years.

So you're getting three to four times of your return just from a time perspective.

Austin City Council is expected to choose a contractor for the project in the coming months and take a final vote this spring.

Nationwide, there are numerous lawsuits over the cancellation of federal energy grants in including one led by Harris county, home of Houston, Texas, over the Solar for All program.

For Straight Arrow News, I'm Keaton Peters.

For more on this story, download the Straight Arrow News app today or go to san.com.