What the Inflation Reduction Act Can Do For You
In August of 2022, the Inflation Reduction Act (IRA) was signed into law. The act is designed to assist American lives with the cost of living. The document covers a wide array of subjects, including renewable energy sources like photovoltaic power systems, but it spans 730 pages (that’s a lot of reading). Within those pages are several benefits dealing with solar power. Here is a list of 9 benefits related to the solar power industry included in the IRA.
- 30% tax credit on solar systems. The Solar Investment Tax Credit (ITC) now offers up to 30% return on the cost of your photovoltaic system if it is purchased between 2022 and 2032.
- 30% tax credit on energy storage systems. Much like the ITC, this benefit works with energy storage systems connected to solar power systems.
- Tax credits for home builders. Since all new homes in California must be built with solar panels or access to electricity from solar farms, these credits will make the many builders who choose home panel systems smile.
- Up to $7500 tax credit for electric vehicles. Taxpayers who purchase an electric vehicle qualify for this credit.
- 30% tax credit on EV chargers. This will likely go hand in hand with the $7500 electric vehicle credit.
- $8000 rebate on heat pumps which, despite the name, can heat or cool your home. They operate without gas, requiring only electricity. With solar panels on your house, you can provide part or all of that electricity yourself.
- $1,750 on Heat Pump water heaters. This allows you to not only use your heat pump to heat and cool your home, but your water as well, again with electricity that you can produce at your home or place of business.
- $840 rebate on electric stoves, cooktops, ranges, and ovens. Converting your appliances to electric instead of gas not only makes them more energy efficient but allows your solar panels to supply their energy instead of your gas utility, reducing your bills even further.
- Up to $4,000 rebate on breaker box and $2,500 rebates for wiring upgrades. Many homes need to upgrade these components in preparation for solar panel installation. These rebates will certainly help with the cost.
Of course, you might not be able to or want to take advantage of all 9 benefits, but there are plenty to choose from. And the IRA offers more benefits that what is listed here. The best benefits, of course, are all the incentives, rebates, and assistance programs to help homeowners upgrade their homes to using solar power. Solaron keeps up to speed with all the ways for you to afford and enjoy the benefits of solar power. We’d love to tell you about them and explain more ways your home improves with a photovoltaic power system. Give Solaron a call, or schedule a free solar analysis online.