Each month, Anh Nguyen shells out nearly $500 (€431) for electricity in Atlanta, Georgia. She's tried everything to cut down on her bills, from spending sweltering summer days at the pool to running the AC only at night. When a federal green energy program promised help, it felt like a lifeline. 

"I was counting that it would bring our electricity bills down and could insulate our house from heat," Nguyen told DW. Solar for All was meant to help low- and middle-income families install solar panels. Without it, Nguyen, who founded her own tech company to support small businesses, would struggle to cover the $12,000 to $20,000 in installation costs. 

But the mother of two's hopes of cutting her skyrocketing electricity bills with solar panels vanished when US President Donald Trump's administration ended the $7-billion program in August. The move will affect some 900,000 households across the country. 

Now, Nguyen is a plaintiff alongside unions, nonprofits, and solar companies in a suit seeking to restore the supports. Meanwhile, a coalition of states has filed a separate lawsuit against the Environmental Protection Agency (EPA) to block the "unlawful termination."

As President Trump rolls back federal support for clean energy initiatives, the future of the green transition in the US may hinge on such state and local action, said Michelle Moore, chief executive officer of Groundswell, a nonprofit that leads renewable energy programs. 

"It means we have to double down on our commitment and our resolve to innovate and work together and get it done at the local level," said Moore. Groundswell was set to deploy solar energy and battery storage with the aim of halving electricity costs for 17,000 households in the southeastern US before Solar for All was scrapped.

Federal cutbacks on renewables

In 2023, planet-warming fossil fuels, including oil and gas, accounted for about 60% of US electricity generation, while nuclear made up around 18% and renewables about 22%. Under the Biden administration, the federal government set a target to reach 100% "carbon pollution-free electricity" by 2035.

But President Trump has made reversing climate-related spending a cornerstone of his second-term agenda. His sweeping tax cut and spending law, the One Big Beautiful Bill Act signed in July, accelerated the phase-out of tax credits for solar and wind projects and tightened eligibility requirements.

The federal government will no longer fund wind and solar projects on productive farmland — a major blow to farmers relying on those grants. It also canceled billions of dollars in grants for climate-related projects in Democratic-run states, including California and New York. Meanwhile, the administration is halting and canceling funds for offshore winds projects. 

A renewable energy rush 

Ironically, some of the administration's actions have created a temporary construction boom as companies scramble to build before deadlines for tax-credits run out, said Matt Traldi, CEO of Greenlight America, a clean-energy nonprofit. 

"What we're seeing from wind and solar companies is that they are racing to qualify all of their projects for tax credits, as many as possible," Traldi told DW. 

That urgency has rippled down to local residents and climate organizations, who are showing up at hearings and advocating for project approvals in their communities.

But the burst of momentum may be short-lived.

"We might see increased deployment in the next year," Levin cautioned, "but it's definitely going to be a major loss for the long term."

Federal actions targeting solar could cut future deployment up to 55 gigawatts by 2030 — a decline of about 20% — according to a report by Solar Energy Industries Association (SEIA) and consulting firm Wood Mackenzie.

But relying on price-volatile coal and gas risks locking in fossil fuel use and driving up electricity costs for households even further as energy demand rises, say critics.

"[These] force us to rely on dirtier, older fossil plants that both increase emissions and cost," said Amanda Levin, director of policy analysis at environmental organization, Natural Resources Defense Council (NRDC). Solar for All, for instance, could've saved families $350 million annually on energy costs. 

Trump administration 'can't stop market progress'

One reason for increasing electricity prices is a growing hunger for energy. In the US, one report found demand could rise 25% by 2030 and 78% by 2050, fueled by growth in manufacturing, expansion of data centers, and electrification of transportation and heating. 

To meet the demand, the US will need to add about 80 gigawatts of new power capacity each year for the next two decades. Most of that is projected to come from solar, battery storage and onshore wind for now. 

"Renewables are still going to be the best option for businesses, for individual consumers, for utilities, and also for data centers and tech companies that are trying to rapidly build out new infrastructure to meet their growing AI data needs," Levin added.

And despite headwinds, Levin pointed to the huge pipeline of renewable energy projects already announced and waiting to be built. "The federal government can't stop that market progress," Levin said.

In 2024, renewables — among the cheapest sources of electricity — made up about 90% of new installed capacity in the US. In the first half of 2025, solar accounted for 82% of all new power added to the grid, with most of that capacity installed in Trump-voting states, such as Texas, Florida, and Arkansas.

Local and state action at the forefront

But as rollbacks squeeze new renewable projects, states will play a significant role in weathering the storm, NDRC's Levin said. Many adopted ambitious clean energy standards and utility transition plans during the first Trump administration, which are still helping drive growth. 

In September, the governors of New York, Massachusetts, and three other states hosting offshore wind projects issued a joint statement urging the administration to uphold green energy initiatives. 

And while the federal government skipped the UN climate conference in Brazil, 100 US state and city leaders attended. One group, America Is All In, represents two-thirds of the US population, and aims to halve emissions by 2030 without federal backing.

Back in the southeast, Groundswell is fighting the EPA's decision to suspend Solar for All — one of the few options left to keep its projects alive. Still, the organization continues to pursue solar and storage projects through other programs and partnerships with municipal and regional utilities as well as local churches.

Anh Nguyen, the mother and entrepreneur who had poured her energy into promoting the Solar for All program, even shared it in her children's school group chat and at a home maintenance expo, convinced it could help other families like hers. Now, she's pinning her hopes on the courts. 

"If the court is there to uphold the Constitution and the social contract between us, then I would believe that they would side with me," said Nguyen. 

Edited by: Jennifer Collins