Solar panels are a great way to make a green change to your home, benefiting the environment and your wallet, and now the government is practically paying people to install them.
The scoop
The Inflation Reduction Act was passed two years ago, and consumers are now reaping the benefits. Through the IRA, homeowners can take advantage of a wide variety of rebates and tax incentives for making green changes to their homes, including weatherizing, upgrading to heat pumps and electrical appliances, and installing solar panels.
For solar panels specifically, the IRA covers 30% of home installation costs, which can be expensive up front but are worth it in the long run. Dubbed "the Expedia of solar," EnergySage is a free tool that can help calculate those costs and rebates. For example, it estimates the average installation in Wyoming costs $44,000, which means you'd get $13,000 in rebates and tax incentives.
🗣️ If you were to install home solar panels, which of these factors would be your primary motivation?
🔘 Energy independence ⚡
🔘 Lower power bills 💰
🔘 Helping the planet 🌎
🔘 No chance I ever go solar 🚫
🗳️ Click your choice to see results and speak your mind
Those interested in claiming the incentives may need to act sooner rather than later, though. President-elect Donald Trump said he wants to "rescind all unspent funds" allocated for the IRA, so while that would need approval from Congress and it's too early to predict any possible end date, the window for these benefits could close as soon as next year.
How it's working
Solar panels have been proven to be a serious money saver, with the exact amount varying depending on your usage, location, and other factors. Forbes reports that on average, homeowners can save $1,600 a year, adding up to $25,500 to $33,000 over the typical lifetime of the solar panel between 25 and 30 years.
A study from the Berkeley Lab also revealed that adding solar panels to your home is viewed as an upgrade, akin to a renovated kitchen or bathroom, and can add up to $15,000 in resale value.
Apart from the financial benefits, the environmental benefits of solar panels are stunning as well. Solar power helps reduce reliance on the power grid, which relies on energy sources that contribute to pollution. According to The United Nations, dirty energy sources like gas, oil, and coal are the biggest contributors to planet-warming pollution. EnergySage also reports its tools and projects have prevented adding 44,000 tons of carbon pollution each year, one of the most notorious heat-trapping gases on the planet.
What people are saying
In a recent report from The New York Times, deputy secretary of the Treasury Wally Adeyemo said the tax incentives and rebates have proven "more popular than initially projected." The outlet reported that 3.4 million households have claimed at least one of the subsidies, adding up to $8 billion in savings, according to the department's analysis. That's a good sign that people are interested in switching to save money, with the added bonus of helping the environment.
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