The historical Inflation Reduction Act (IRA) passed in August 2022, marking the largest federal policy to combat the adverse effects of climate change and decarbonize all sectors of the economy. Read more to understand how the U.S. Government’s investment will make your transition to renewable energy and electric vehicles more affordable, but what it will cost you if you wait too long to go solar.
30% Solar Investment Tax Credit (ITC) for solar systems and energy storage technologies
The ITC was increased to 30% and extended 10 years, foreshadowing a boom of alternative energy adoption in the coming years. Taxpayers who go solar will receive almost a third of the cost of their system back through a federal tax season return following their solar installation, making the transition to clean energy as affordable as ever. Plus, those who are interested in energy storage technologies that keep their home running during a power outage, like the Tesla Powerwall, are in luck. Collect another 30% tax credit on your backup battery purchase. These tax credits ease the homeowner’s financial burden when making an investment in solar.
The bad news is that with a higher adoption rate of alternative energy and storage solutions, the clean energy sector will be at the mercy of supply and demand sooner than you expect. Supply will fall short of demand if a surge of Americans are all trying to get their hands on it at the same time.
Luckily, 2024 solar technology prices are lagging behind current inflation trends, making right now the most affordable time to go solar with the added 30% tax credit already in place.
[Related: How Does The Solar Tax Credit Work?]
Tax credits for electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs) and EV chargers
Qualified taxpayers can receive tax credits of up to $7,500 on applicable new and $4,000 on used EVs and PHEVs. These generous tax credits are going to accelerate the adoption of EVs, which is the goal for the U.S. Government, who aim for 50% of new car sales being electric by 2030. Recently, EV manufacturer Aptera announced new technology that will soon allow a 1,000-mile range on a solar electric vehicle, marking another exciting milestone in EV usability.
For homeowners with EVs, you can also receive 30% of the total cost of equipment and installation when adding an EV charger at your house. 80% of the time, EV owners charge their cars at home, but don’t disclose the cost associated with it.
Although widespread EV adoption will cut carbon emissions and save drivers thousands of dollars on fuel prices, it comes with a trade off. Electricity prices are on the rise and charging your car at home can run up your utility bill and cause more strain on the electric grid – decreasing the amount of available energy for all homes. But if EV owners install solar on their homes, they can rest assured their EV will have plenty of clean energy to power it, without driving electricity bills sky high.
$40 billion investment in American manufacturing for clean energy
Clean energy manufacturing is going to shift domestically in the coming years and create thousands of high-skilled jobs from the “Make it in America” initiative established by the IRA. This shift is going to “revitalize American manufacturing” and prioritize opportunities for domestic clean-energy equipment and heal the supply chain.
Unfortunately, it will be several years until domestic products are widely available and affordable. There’s a risk of unreliable solar dealers jumping into the mix with short-term but unreliable solutions. With all this money, the industry will likely become more regulated, solar companies may go out of business or consolidate. Luckily, Freedom Solar has been in business since 2007. The combination of our warranty, high-quality product and expertise in our markets make us a dealer you can trust to deliver you excellent quality solar technology and guaranteed warranty protection.
Rebates from the Energy Efficient Home Improvement Credit
Some home improvements may need to be completed to facilitate your switch to solar. With the Energy Efficient Home Improvement Credit, there will be a rebate of up to $4,000 on breaker boxes and $2,500 for electrical wiring to mitigate the prices associated with these upgrades.
Bonus rebates under this credit: heat pumps, water heaters, ventilation upgrades and some smart appliances at point-of-sale. These credits end in 2032 and like everything with inflation, the prices are on the rise and acting sooner rather than later will benefit your wallet and the planet.
Putting residential solar and battery storage on your roof now is your best protection against an uncertain energy future.
Freedom Solar Power does business the right way, offering full-service solar installations and a 25-year warranty. We offer decades of solar expertise and look forward to serving our communities during this exciting boom in solar growth!
Solar panel company Freedom Solar also has it’s own solar repair and maintenance service department if needed. Our experienced team can maintain, repair and upgrade any system for maximum energy production and efficiency