The Healey-Driscoll administration yesterday announced that the U.S. Environmental Protection Agency will be awarding $156 million to Massachusetts under the Solar for All competition, a $7 billion program that is part of the Inflation Reduction Act’s Greenhouse Gas Reduction Fund.

With the funding, the Massachusetts Solar for All program expects to deploy 125 megawatts of solar capacity, provide a 20% reduction in energy costs to more than 31,000 low-income and disadvantaged households, support 2,800 clean energy jobs, and decrease annual carbon emissions by 70,500 tons, according to the administration. The federal funding is expected to mobilize an estimated $286 million in other private capital.

Gov. Maura Healey called the Inflation Reduction Act “a once-in-a-generation opportunity to fund state climate action” and said Massachusetts is “leading the pack once again.”

“We’ve adopted a strategy that combines housing affordability and climate policy,” she said, “supporting our residents in accessing the important cost and health benefits that come with solar energy.”

A coalition led by the Massachusetts Department of Energy Resources and including the Massachusetts Clean Energy Center, MassHousing, and the Boston Housing Authority submitted the state’s application. Massachusetts, qualifying as a Medium Program, received one of the largest state awards and the largest award in New England.

The governor thanked President Joe Biden’s administration and the state’s congressional delegation for their support.

Lt. Gov. Kim Driscoll highlighted the team approach.

“Instead of dozens of small applications coming from our state competing against each other, we worked with over 80 stakeholders and communities to put forward a single strong application,” she said. “That’s the power of partnership in a high-stakes federal competition.”

The Solar for All program will be available to all Low-Income and Disadvantaged Communities across Massachusetts to maximize program participation and impact in historically underserved communities.

“With Solar for All, the people most deeply impacted by extreme weather and pollution will be at the front of the line for clean, affordable, locally produced energy,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “Residents will be able to look around their communities and see tangible benefits of the clean energy transition thanks to the Inflation Reduction Act — solar panels on roofs, local workers with good-paying jobs, and cleaner air for us all to breathe.”

Climate Chief Melissa Hoffer said Solar for All will build on other initiatives like the Massachusetts Community Climate Bank to leverage public and private funds to promote housing affordability and clean energy.

Energy Resources Commissioner Elizabeth Mahony will oversee the program.

Planned components of the Massachusetts Solar for All program include a residential interest-free loan initiative, a residential lease initiative, a public affordable housing procurement initiative, a private affordable housing financing initiative, and a low-income community shared solar initiative. The program will include funding for technical assistance, education, outreach, quality assurance, and workforce training.

Solar for All will combine the state’s solar energy and building decarbonization expertise at DOER and MassCEC with the housing finance and development expertise of MassHousing and Boston Housing Authority. In addition, the collaboration leverages the state’s creation of the Massachusetts Community Climate Bank in June 2023.

“Solar for All will deliver a major boost for the state’s decarbonization goals and timelines, while ensuring that low-income and disadvantaged communities equitably benefit from clean energy initiatives,” said MMA Executive Director Adam Chapdelaine. “The MMA applauds the Healey-Driscoll administration for its strategic and team-based efforts to win this historic funding, and thanks the Massachusetts congressional delegation for their unwavering support.”