For homeowners looking to lower their bills, switching to solar energy generates massive savings on monthly energy costs. But even before that, you'll be able to access thousands of dollars via federal tax credits from the Inflation Reduction Act.
When you install solar panels at home, the installation is eligible for several rebates and benefits from the IRA. And while the upfront cost can sound steep — an average of $30,000, according to EnergySage — the IRA's tax credit lowers it by 30%. In states like Wyoming, where the average installation costs $45,000, this means up to $13,000 just for making the switch.
Yet despite these available savings, a recent MarketWatch survey of 1,000 homeowners found that only 46% of them took advantage of the federal tax credit when purchasing their home solar systems. These respondents also mentioned using other cost-saving incentives, such as state tax credits, local rebates, and a state sales tax incentive; others simply paid full price in cash or using a solar loan.
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And fortunately, whether or not you take advantage of tax breaks, these systems pay for themselves by generating lower energy bills. According to reporting from Forbes, the average home solar energy system will save homeowners anywhere from $25,500 to $33,000 during the life of the panels.
It's worth noting that the aforementioned tax credits may not be available forever, as President-elect Donald Trump has said he would like to put an end to large portions of the IRA. So taking advantage of the rebates sooner rather than later — while the window is still open — could save you thousands.
For communities that opt into community solar programs, the benefits are even greater. Reducing the demand on the grid lowers the overall production costs for everybody; one study from the University of Texas at Austin found that investing in demand-reducing tools could cut utility costs by up to 40% per neighborhood.
The other key benefit, of course, is that solar energy is far cleaner and more sustainable than dirty energy sources like burning coal. These old systems spew planet-heating pollutants and emissions into the atmosphere, leading to a myriad of consequences — from increased air pollution to more severe weather events. Fortunately, not only does solar power make an impact at home, but it can help the world too.
If you're interested in learning more, a great way to start exploring your options is by using the free estimator tool from EnergySage, where you can access quick solar installation estimates and compare quotes from different providers.
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