The Inflation Reduction Act is a $750 billion healthcare, tax, and climate bill signed by President Biden on August 16, 2022, investing in domestic energy production and manufacturing that aim to reduce emissions by roughly 40% by 2030. Although there’s been a lot of buzz about the Inflation Reduction Act lately, a lot of home and business owners are unclear on which benefits they can take advantage of. Here’s how the Inflation Reduction Act relates to renewable energy and ways home and business owners can benefit:
- Extended the federal solar tax credit at 30% through 2032
If you pay taxes, this significantly reduces the overall cost of solar. It’s always suggested that home and business owners consult a qualified tax professional to confirm their tax liability and carryback/forward options.
- Energy storage tax credit
Energy storage solutions (batteries) are also eligible for the 30% tax credit when paired with solar energy.
- Direct pay provisions for non-profits, municipalities, and state governments
This allows developers of clean energy projects to monetize tax credits without having to utilize traditional tax equity financing structures.
- Adders for projects located in low-income communities and Native American land—using domestic content
If you’re considering a solar project that may qualify for adders, be sure to work with an experienced local solar company.A solar company with many years of experience in your region will understand the guidelines and will help ensure you get every possible incentive associated with your project.
The benefits of the Inflation Reduction Act are great for anyone considering solar energy, especially when paired with the long list of existing benefits that accompany solar:
When solar panels are paired with energy storage (batteries), you’ll have a stable power source—even when the grid goes down. This is especially popular in hurricane-prone regions, such as ours.
When designed and installed by a reputable local solar company, you will know exactly what you’ll be saving on monthly electricity costs. In most cases, solar customers save money on day one—even with financing!
- Return on investment (ROI)
ROI is an important factor for both home and business owners. Solar is a proven solid investment.
In today’s hot real estate market, increasing one’s home value is an important factor of adding solar panels. While we don’t suggest installing solar solely for this purpose, it does increase the home value and appeal to buyers. Lots of research has been done by reliable sources (such as Zillow
) and not only do solar homes sell for more but they even sell faster.
Whether you are stiving to meet sustainability goals for your company or just want to make a positive impact on the environment, solar energy helps improve the environment in a number of ways.
It may sound funny, but many businesses attract more customers by going green. Since solar positively impacts the environment, it’s certainly something worth promoting. And, for homeowners, you’re showcasing that you care about the environment and your commitment to clean energy will impact future generations.
There are many attractive financing options available today (such as $0 down for qualified buyers).
While utility structures are never guaranteed to remain the same, your expected solar production will help offset any increased electricity cost (saving you even more money). Most electric companies regularly impose rate increases.
Businesses can often recognize 100% of the depreciation in the same tax year that the solar was installed.
Interested in seeing if solar is right for your home or business? Cape Fear Solar Systems offers free no-pressure consultations. If solar does not look viable for your home, business, or your finances—our highly trained team will advise you don’t buy solar at all.
Give us a call today to learn more at 910-459-5533, option 1, or visit us at www.capefearsolarsystems.com