A recent article at Bloomberg lists a few of the recent Inflation Reduction Act’s major benefits for those thinking about installing solar panels in their homes. EV tax credits have received a lot of attention in relation to the recently passed law, mostly because of disagreements over its organizational structure. However, the new law also provides an unlimited 30% federal tax credit for solar systems on houses. It goes much beyond that, with additional tax credits available to electrify your home as well, providing solar an even greater advantage.
According to the article, there are so many financial advantages for installing solar that the Inflation Reduction Act of 2022 might be better referred to as the Electrify Your Life Act.
SUCH A VARIETY OF TAX CREDITS One of the most important things they emphasize is that other forms of energy are also eligible for tax credits and restoration subsidies. The new regulation also covers battery storage, including those installed in 2022, and gives you a 30% credit for panels. In order to store solar energy for use at night or during a power outage, you can use that money to buy something like a Tesla Powerwall. The credit can be utilized for other renewable energy sources, such as wind turbines, even if you don’t have solar.
Tax rebates for electric vehicles and charging stations are also included in the statute. It reinstates the $7,500 federal tax credit for EVs that the Trump administration had permitted to run out. Additionally, it offers a credit for home chargers of up to $1,200, which can make solar-powered EVs much more practical.
While electric vehicles and battery storage increase the value and utility of your home solar array and shorten the time it takes to reach break-even with the cost of solar energy compared to grid electricity, that’s just the beginning of what the bill achieves.
A solar/storage system can accomplish so much more by funding other electrification initiatives close to your home. Some systems that heat and cool homes can be purchased at a large discount thanks to rebates for home electrification. For many models, the rebate of up to $1,750 for heat pump water heaters would cover the entire cost. Government subsidies for induction stoves total $840, or roughly two-thirds of the cost of many high-efficiency cooktops. Homeowners who seek to upgrade their electrical infrastructure, which is typically necessary before solar or battery storage systems may be installed, are eligible for a $4,000 investment credit.
People will therefore find it much simpler to set themselves up such that they may not only use solar electricity, but also make the most of it. Families are eligible for the refunds if their annual income is up to 150% of the local median income, which might vary greatly. A maximum of $14,000 is made available.
WHY THIS MATTER SO MUCH For my family, this will be a significant event. We have gas heating, a gas stove, and an outdated power source that can bare minimally support one EV charging at a low L2 rate (on top of what the house needs). This has prevented us from replacing items like our air conditioning and has made it tough for us to reduce our household’s carbon footprint.
I am aware that many American families share my situation, living in houses that were constructed in a time when using fossil fuels and paying for a meager amount of energy was completely acceptable. For a number of reasons, electrifying homes is now a superior idea.
Cost is clearly the first. Our power bill increased to an unsettling $410 in the grueling July heat near El Paso (which Id consider drinking after paying today, but all money that could have gone to alcohol went to feed the air conditioning). Putting aside jokes about drunkenness (I don’t drink much), it’s a dreadful situation to be in, particularly as summer heat becomes something we can’t truly joke about because of all the misery and even deaths it causes. For a family, solar can help keep those costs under control and predictable.
The improved emergency readiness that a family receives from powering everything and adopting solar with storage is another benefit. Although they weren’t affected by the most recent Texas freeze, the areas surrounding El Paso were the hardest afflicted in 2011.
Due to the fact that El Paso’s power plants weren’t built for temperatures so low, there were also issues with electricity and natural gas availability. This meant that the majority of people couldn’t heat their homes without a backup source, such a fireplace.
People would have had a chance to have power for a few days if solar with storage, heat pumps, and everything else was electrified. The rolling blackouts would have allowed people to use their batteries for a lot longer despite the overcast weather and prevented the cold from becoming hazardous. Similar to how this one could have been handled, many additional grid emergencies could be handled effectively with solar and storage.
Even without considering the environmental benefits of increasing power, installing solar storage, and electrifying everything, all of these advantages should be more than enough. Utilizing solar energy exclusively, including it for cooking, heating, cooling, and even transportation, significantly reduces a family’s carbon footprint while maintaining high standards of living. People should therefore be prepared to make this compromise.
Cost was the single obstacle preventing this for the majority of homes. With rebates, tax credits, and other assistance for homeowners thinking about switching to solar, this helps remove the last obstacle in their way.
This still doesn’t assist renters in electrifying, though. Although there are tax advantages available, remodeling a home like this still involves significant personal investment and would be more advantageous to the tenant than the owner. Renters won’t be able to benefit from this because rental homes would fall behind. Nevertheless, this is a great step in the right direction.
CleanTechnica’s Vijay Govindan provided the featured image.
Do you value the unique reporting and cleantech news coverage on CleanTechnica? Consider becoming an Patreon patron or a CleanTechnica member, supporter, technician, or ambassador. Don’t miss a cleantech story, will ya? Subscribe to daily news updates from CleanTechnica by email. Or follow us on Google News Want to advertise with CleanTechnica, send us a tip, or propose a speaker for our podcast CleanTech Talk? You can reach us here.