The clean energy tax credits that have helped millions of Americans are still available, but some changes could be coming. Here's what that means for your wallet.
The scoop
Thanks to the Inflation Reduction Act, you can get major tax breaks when you choose money-saving home improvements such as solar panels, a heat pump, or an electric vehicle.
These incentives have already helped hundreds of thousands of families cut their energy costs while supporting over 620,000 new American jobs, according to EnergySage.
The most valuable incentive is the 30% federal tax credit for solar panels, which typically saves homeowners $5,000 to $7,000 on installation. Plus, energy-efficient upgrades such as a heat pump can save you $1,000 each year on energy bills.
But with changes coming to Washington, some of these savings could look different in 2025. President-elect Donald Trump has said he intends to eliminate IRA-backed incentives once he takes office in January.
While the incentives aren't disappearing overnight and eliminating them would require an act of Congress, starting your clean energy journey sooner rather than later is the smartest move for your bank account.
How it's helping
The timing couldn't be better to start saving. Solar panel prices just hit near-record lows at $2.69 per watt, per EnergySage.
These improvements pay for themselves through lower utility bills, often in just a few years. A typical solar installation saves homeowners $20,000-$30,000 over its lifetime. Adding battery storage helps you save even more by storing free solar power for nighttime use.
The first step is seeing how much solar could cut your electric bills. You can get free custom solar estimates and compare quotes from local installers through EnergySage's online tools.
🗣️ What is stopping you from upgrading to a heat pump system?
🔘 The cost of installation 💵
🔘 I live in a cold area 🥶
🔘 I don't know enough about it 🤷
🔘 I already have one 😎
🗳️ Click your choice to see results and speak your mind
What everyone's saying
Aside from getting ahead of the questionable future of the IRA, there are a multitude of reasons to take advantage of solar panel pricing sooner rather than later.
"We're at a pivotal moment for solar pricing, where ongoing cost reductions are enabling more homeowners to make the switch to clean energy," Spencer Fields, EnergySage director of insights, said.
EnergySage energy adviser Nicole Turley added: "I've helped people with many different priorities and viewpoints go solar. Whether you want to support domestic energy production, save on electric bills, contribute to a cleaner environment, or gain energy independence, solar just makes sense."
Remember that your voice matters. Reaching out to your elected officials about keeping these cost-saving programs helps ensure more families can take advantage of them.
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