What Does the Inflation Reduction Act Mean for Solar & You?
Sep. 02, 2022
The Inflation Reduction Act of 2022 is a massive tax, healthcare, and climate bill just signed into law. Excitement is swirling around this historic piece of legislation, and you’ve probably been hearing about it for the past couple of weeks. But what does it mean for you?
Keep reading for a breakdown of the Inflation Reduction Act (IRA) and how it will affect you, your solar panel installation, and the environment more broadly.
What Is the Inflation Reduction Act?
The Inflation Reduction Act is a new statute that aims to address inflation by reducing healthcare and energy costs, bringing down the federal deficit, and working to combat climate change. The legislation tackles some of the biggest issues our country is currently facing—including high prescription drug costs and increasing greenhouse gas emissions—by introducing new policies, tax credits, and incentives. The act will also create more than 9 million jobs and help strengthen the American economy.
How Will the Inflation Reduction Act Help with Climate Change?
The Inflation Reduction Act will invest more than $300 billion dollars in clean energy and climate reform. It is the largest clean energy investment in United States history and a massive step toward meeting our carbon reduction goals. The provisions set forth in the IRA:
- Create and extend clean energy tax credits
- Create fuel tax credits
- Create electric vehicle tax credits
- Implement greater carbon management and carbon capture
- Create and extend residential energy efficiency and electrification incentives
- Allow for greater innovation around clean energy technologies and manufacturing
The United States is currently on track to reduce greenhouse gas emissions by 24-35% by 2030, when compared to 2005 levels. The provisions outlined in the IRA put us on track for a 31-44% reduction in the same timeframe.
What Does the Inflation Reduction Act Do for Solar Installation(s)?
Solar energy production and solar storage are key to the United State’s climate and carbon reduction goals. To make solar panel installation more affordable, the Inflation Reduction Act allocates a significant amount of spending to tax credits and incentives for onsite clean energy production and battery storage.
Here’s how the Inflation Reduction Act will impact solar panel installation(s):
- Increases the solar Investment Tax Credit (ITC) to 30%
- Extends the ITC for residential, commercial, and utility-scale solar projects for 10 years
- Creates a new federal tax credit for standalone solar battery storage
- Includes a retroactive credit, so anyone who installed solar this year can claim the 30% credit for 2022
Take Advantage of Solar Tax Credits and Incentives!
The Inflation Reduction Act and the solar tax credits it creates make now one of the best times to go solar, ever. Boston Solar can help you take advantage of the new 30% federal solar tax credit for your home or business. We’ve been empowering Massachusetts for more than 10 years and have installed more than 5,000 solar energy systems. If you’re looking for an experienced solar provider near you that can help you claim tax credits and incentives, give us a call today. We can get you on the path to clean, affordable energy production for your Massachusetts home or business!
Get a 30% tax credit when you go solar now. Call 617-858-1645 or contact us to learn more.