What effect will federal solar cuts have on West Virginia?

CLARKSBURG, W.Va. (WBOY) — Last week, the Environmental Protection Agency cut Solar for All, a Biden-era program meant to help low-income households install residential solar panels. But in a state with a heavy focus on fossil fuels, how will this change affect West Virginians?

In a video announcing the decision, EPA Administrator Lee Zeldin said the cuts were in accordance with the Big Beautiful Bill’s repeal of the Greenhouse Gas Reduction Fund.

Solar for All’s $7 billion in grants included $106 million set aside for West Virginia, with the program set to begin in the state in 2026.

12 News spoke with West Virginia solar company, Solar Holler, and asked about what changes in the federal government might mean for the solar industry in West Virginia. However, Solar Holler Founder and CEO Dan Conant said he wasn’t concerned, adding that people have been looking to solar as utility rates get higher, and he doesn’t think that’s going to change.

“Demand for electricity is skyrocketing because of data centers and artificial intelligence. And that’s all being built in the mid-Atlantic on the same grid that West Virginia is in. So we’re seeing that helping drive up the price of power a ton,” Conant said. “At the same time, the cost for solar equipment has continued to go down.”

Solar Holler has said that it’s building 500 solar projects in Appalachia this year, and Conant is even more optimistic about the future. He said that the “levelized cost” of solar, the amount of energy solar produces compared to the total cost of production over the unit’s lifetime, compares well to other sources, including fossil fuels. Conant credited this to the fact that once a solar unit is installed, there is no cost for fuel, and that solar units, as well as battery storage, have gotten cheaper.

A study by the US Energy Information Administration says that solar’s levelized cost is lower than natural gas in most regions, “even without the tax credit.” Investment bank Lazard similarly said that “utility-scale solar and onshore wind remain the most cost-effective forms of new-build energy generation on an unsubsidized basis.”