Inflation Reduction Act Makes Solar Energy More Affordable Than Ever
Updated: Jul 31
On August 7th, 2022, The U.S. Senate passed the Inflation Reduction Act, or IRA. Then, on August 12th, 2022, the IRA was also passed by The U.S. House of Representatives. The IRA was signed into law by the U.S. President, Joe Biden, on August 16th, 2022. The IRA has a big impact on solar energy usage and aims at making renewable, clean energy more accessible to everyone in the U.S. That means a lower carbon footprint to help save our planet, and lower electricity bills to help save your wallet. Lifetime Quality wants to help you and your family make the most of your clean energy options.
What is the Inflation Reduction Act?
What is the Inflation Reduction Act, and how does it impact renewable energy? The IRA is meant to help lower costs in healthcare, fight against inflation, and help make renewable energy more accessible to those living in the U.S. Part of the IRA, nicknamed the climate bill, will introduce incentives for families and large businesses to make a switch to a cleaner energy source.
This landmark climate bill is a huge victory for environmental protection. It sets a target of net-zero emissions by 2050, and establishes a number of mechanisms to help reach that goal. Among other things, the bill will create a carbon market, invest in green infrastructure, and promote clean energy, such as solar. PBS News has a lot of useful information on this bill.
The impacts of climate change are already being felt around the world, and solar energy is one way we can fight against catastrophic consequences. This bill will have a massive impact on both the planet and homeowner’s ability to afford sustainable energy. Solar panels are thought to be too expensive for residential middle and lower class households, and the IRA acknowledges this. How exactly will this affect the everyday homeowner’s ability to go green?
How does the Inflation Reduction Act help homeowners?
For homeowners, this bill is the gateway to cleaner energy. It includes tax credits on the cost of energy efficient setup, as well as a rebate on energy efficient appliances. This means homeowners could save thousands when switching to clean energy. It also means clean energy will be more accessible as lower income households will receive more financial help when installing clean energy in their home. An increase in clean energy means a stronger electrical grid and a lower electric bill average.
How do solar tax credits work, though? According to NPR, when a homeowner fronts the amount to install solar panels, then they can claim up to 30% of that cost on their taxes. This means that the money used to install solar panels will be deducted from their yearly taxes. It is like a tax discount when switching to clean energy. The amount of tax credit you can claim is directly related to annual income, making it more accessible to lower income households.
The Inflation Reduction Act pays you to fight climate change.
Renewable energy is about to become more accessible than it has ever been before. It will become cheaper to install solar panels, there will be more incentives to switch to cleaner energy, and you could get money for any extra energy you do not use. The gatekeeping of clean energy is coming to an end.
One way the IRA bill would pay you is by incentivizing homeowners to switch to renewable energy. It does this through rebates and tax credits. This means you could get up to a 30% discount on your solar installation. This bill will also cover replacing old appliances with cleaner energy appliances. With cost no longer being an issue, more and more U.S. residents will make the switch.
By taking advantage of these clean energy opportunities, you would be doing your part in the fight against climate change. Climate change impacts us all, and solar energy just makes sense as it is one of the easiest ways to use sustainable, and cost efficient, energy. It will help your energy bill decrease and stabilize, and it will help the planet for generations to come.
Benefits of installing solar panels on your home
Now that renewable energy is more readily available, which type is the best for you? Solar panels are becoming more and more common in residential areas. The solar panel cost to install is not small by any means, but the new tax credits, and the overall savings on electricity, are well worth it. Not to mention the benefit of helping to fight climate change.
One of the biggest benefits of solar panels is the offset in electric bills. The sun is an easily renewable source of energy, and after a couple of years, solar panels already pay for themselves. Along with government incentives, such as tax credits and rebates, you could save thousands on electricity.
Solar panels can also increase the value of your home, as seen by Energy Saver. Solar energy is more reliable than electric companies, and it is an opportunity to help the community and the planet. There is also the added benefit of lower electricity costs, so home buyers can easily see the value of solar panels. The aesthetics of solar panels have also changed through the years to have better curb appeal.
Using solar energy instead of the electric grid helps to strengthen the power grid. During extreme weather, like a heatwave, the power grid gets easily overwhelmed which causes power outages. When using solar, that is a little less pressure on the grid to keep up with everyone’s demands. This allows energy to be focused on lower income areas that perhaps are not able to install solar panels. This also creates a stronger community.
Solar panels are one way to help in the fight against catastrophic climate change. The U.S. electricity sector is one of the biggest contributors of carbon emissions. Not only would solar energy create a stronger electric grid, it would cut down on the harm to the environment that fossil fuels create. Renewable energy is both a financial and environmental asset.
When were solar panels invented?
Solar energy has actually been around since the late 1800s. However, solar energy research did not take off until around the 1970s, when the first environmental crisis was front and center. Through the years, different types of solar panels have been created to produce the most cost effective and energy producing panel for consumers, as well as the safest version. This is not new technology, rather it is more affordable and reliable technology.
What could the future of solar look like? One complaint solar panels get is how bulky and unsightly they are. Shingles made out of solar panel, or solar tile, is a new way to incorporate solar into your home. These shingles sit just like a regular shingle and cover the whole roof to absorb the sun’s energy. However, solar shingles are more expensive and might not produce as much power as a panel would, depending on how many there are, so it is still being researched and advanced.
Do solar panels work when the sun is not out?
One of the biggest misconceptions about solar power is that it only works when it is sunny outside. Solar panels can actually continue to collect energy even if it is rainy. The sun may be covered by clouds, but some rays still make it to earth, allowing the panels to continuously collect energy. Not only are they still running on non-sunshine days, but solar batteries are a viable back up option for when the sun is not out. These batteries can be used at night, or during a power outage. Batteries can even be shared within a community.
It is also believed that solar panels are actually bad for the environment, since they will eventually end up in landfills. The truth of the matter is that solar panels are recyclable after their life of creating clean energy. The best way to dispose of old solar panels is to contact the manufacturer as they sometimes will recycle these for free. The materials used to create solar panels have been changed throughout the years to make the least environmental impact.
Solar panels should never damage your roof as they are only mounted, not directly attached. Professional installers know what they are doing, and installation is typically straightforward. Your solar panels also will not require a ton of maintenance. Like any roof, solar panels should be inspected and cleaned regularly to make sure they are operating to the best of their ability.
Lifetime Quality puts Family First
Here at Lifetime Quality, we believe in family first. That means supplying you and your family with the means of creating a healthy and clean environment for your future. If you are looking for assistance with electric bill costs, solar panels are a viable option. The new IRA being signed is a signal that climate change is real and it is here. The good news is that the government is offering financial assistance to replace fossil fuels with a cleaner source of energy. Solar panels especially are becoming more common in residential areas, meaning they are more affordable and increasing property value. With this bill being signed into law, it is one of the biggest environmental bills that have been passed in over a decade. Renewable energy is the future, and solar is a great place to start. If you have any more questions regarding solar, then reach out to Lifetime Quality by visiting our website, or give us a call at 614-407-7663.