Legal Challenge Targets USDA’s Shift on Solar Energy Funding
The Environmental Law & Policy Center (ELPC) and Earthjustice have taken legal action against the U.S. Department of Agriculture (USDA), aiming to reverse a policy change that effectively excludes solar energy from the Renewable Energy for America Program (REAP). This lawsuit, which involves various stakeholders, claims that the USDA’s revised eligibility criteria unfairly burden farmers and rural businesses with unexpected expenses after altering the program’s rules midstream.
Established in 2002, REAP was designed to aid farmers and rural enterprises in transitioning to renewable energy sources like solar. The program has historically enjoyed bipartisan support and notable success, reportedly financing 6,822 projects and stimulating $2.75 billion in rural economic growth from 2023 to 2025. USDA’s own 2025 report acknowledged that REAP initiatives powered or conserved energy for over 300,000 homes in 2024 alone, with 68% of awards from 2011 to early 2025 supporting solar projects.
The USDA’s new policy, however, excludes solar from a program explicitly intended to promote it. This change threatens to deprive rural communities of affordable and sustainable energy solutions amidst soaring energy prices. Critically, the USDA has applied this policy retroactively, impacting applications submitted under the previous guidelines. Many farmers and small businesses, who had invested heavily based on former rules, now find themselves ineligible for anticipated reimbursements.
An illustrative case involves Book Family Farms in Dixon, Illinois. After being approved for $446,000 in funding for solar projects, the farm was informed more than two years later that their applications were now invalid under the new anti-solar policy.
The Lawsuit’s Demands
The lawsuit seeks to nullify the USDA’s anti-solar policy and demands that REAP applications be processed according to the original rules in effect when they were submitted.
Earthjustice represents multiple plaintiffs, including Book Family Farms, the New York Solar Energy Industries Association, and others. ELPC represents entities such as the Iowa Farmers Union and Solar United Neighbors.
“USDA doesn’t get to encourage farmers to invest in renewable energy under one set of rules, let them spend their own money relying on those rules, and then rewrite those rules once they’ve already invested. Fortunately, the law does not allow agencies to change course this abruptly, without notice or a real explanation,” said Michael Youhana, Attorney for Earthjustice.
“Congress created REAP to help farmers put solar on their own land and cut their own energy costs. USDA now wants to dismantle a successful bipartisan program and slam the door on farmers who already spent significant sums of money relying on USDA’s own rules,” said Jessica O’Donnell, Senior Attorney, Environmental Law & Policy Center. “USDA cannot change the rules of the game mid-stream after farmers have relied on those rules in good faith, and we are going to court to hold them to it.”
“Wolf River Electric has engaged with more than 300 customers affected by REAP funding. Many of those projects plainly satisfy REAP’s eligibility criteria under the rules then in effect. We have also designed eight solar and battery storage projects for our tribal partners that qualify for consideration under the REAP program. Those projects would provide backup power for essential tribal community businesses and services. REAP funding can determine whether a rural or tribal business builds the project it needs, reduces its size, or cannot proceed at all. These projects would lower energy costs, strengthen energy independence and resilience, and support skilled electrical jobs in rural communities. Rural and tribal businesses need a dependable program with consistent rules they can rely on when making major investments,” said Vladimir Marchenko, CEO and co-founder of Wolf River Electric.
“As finances get tighter and margins thinner, we cannot pull the rug out from the people who grow our food. REAP is supposed to help farmers keep their energy costs low. Instead, the USDA has blocked solar, an incredibly affordable source of energy, and made the change retroactive—leaving farmers with bills they were told the government would cover,” said Alex Beld, Communications Director, RENEW Wisconsin.
“Solar helps farms and rural small businesses control costs by taking control of where their energy comes from. We must honor the promises we have made and restore solar energy to this critically important program for rural America,” said Anya Schoolman, Executive Director, SUN.
“Rising utility bills are an acute challenge for farmers and small businesses in Upstate New York and across America. Solar power is a critical tool to lower energy costs, and REAP was established to ensure that rural communities can access these savings. The USDA’s decision to block solar funding through REAP undermines Congress, hurts farmers, and hurts small businesses. We’re calling on the USDA to immediately restore its support for solar power and lower bills,” said Noah Ginsburg, Executive Director of New York Solar Energy Industries Association (NYSEIA).
Environmental Law & Policy Center is the Midwest’s leading environmental legal advocacy organization, working across Illinois, Michigan, Minnesota, Ohio, Indiana, and other states to advance clean energy and protect natural resources. Learn more at ELPC.org
Original Story at earthjustice.org