The Incentive Tax Credit (ICT) offered by the federal government has been crucial for enabling the widespread adoption of rooftop solar. Over the years, the value of the credit has ebbed and flowed between 10% and 30%.
It is no overstatement to say the ITC is largely responsible for the current state of the solar market. Had this incentive not been on offer, the market would still be languishing. Panels would be prohibitively expensive for all but the wealthiest consumers.
Now, in recognition of the economy boosting, carbon killing success of the ICT it may be getting an upgrade thanks to the Inflation Reduction Act (IRA), recently agreed upon by Senators Manchin and Schumer. The full text is available here. Or, a more readable summary here.
What’s In the Bill?
I’ll leave the non-solar portions of this proposal to be explained by your preferred talking heads. But there is some exciting news in there for prospective solar buyers if this bill passes, which it seem poised to do.
Solar Incentive Tax Credit
Currently at 26% and on its way to 10% by 2024 under current legislation, the IRA is expected to increase the rebate to a full 30%! Almost a full third of your entire system installation will be paid for by Uncle Sam under the proposed legislation.
The ICT will be extended to 30% for 10 full years. After that it will gradually phase down to 26% until sunsetting in 2035.
Battery Backup
This legislation includes batteries! Whether you want standby power for your solar power system, or just to be protected during blackouts, large battery storage systems will also enjoy the benefit of a 30% rebate for the next decade if this bill is passed. This is great news for current solar system owners who don’t have a battery backup installed. How does 30% off sound…
No Brainer-er
Switching to solar was a no brainer before this bill. It’s cheaper, it’s cleaner and you’re investing in your own equity rather than your utility’s. Once your system is paid off you will never see another bill for electricity usage. How does that sound? But if the incentive laden IRA passes, the switch becomes even more of a no brainer.
Next time you watch your asphalt shingles cook under the summer sun, just think to yourself: instead of cooking my attic, I can be using that energy to feed my power meter…
It’s that simple. And we’ve found you the easiest way to make it happen.
The Solar Marketplace
If you’re ready to make the solar switch, Evergreen Off-Grid has partnered with EnergySage and we’re excited to show you how to save thousands on your new solar installation through The Solar Marketplace.
EnergySage is the largest, most trusted solar education resource in the country. They serve as a consumer advocate to help energy customers learn about and comparison-shop for their rooftop solar, battery and community solar options.
Simply sign up (no phone calls required!) and receive multiple quotes to compare in one place.
EnergySage’s competitive marketplace is helps deliver up to 20% savings compared to the broader market. Additionally, their team of unbiased expert Solar Advisors can help you review your proposals and answer any questions you have along the way.
According to the National Renewable Energy Laboratories (NREL), using the Solar Marketplace can save you thousands of dollars on your investment. And the best part is…
Using EnergySage’s Marketplace is FREE!
So head over to the Solar Marketplace now and find the best solar solution for you!
Savings on Savings on Savings
Your brand new power plant may now start off with a 30% rebate from the Federal Government (plus local incentives). You benefit from more efficient and cheaper solar panels than have ever been produced. And now you also have a place to shop for contractors that will shave thousands more from your solar installation. What are you waiting for?!
Local Solar Incentives
For a more comprehensive discussion, including a summary of incentives state by state, visit our article on Solar Rebates in 2022.
Summary
Say what you want about the Inflation Reduction Act, it’s a big win for the residential solar consumer. The 30% rebate is extended to entire home energy systems for over a decade. We can expect this bill to supercharge rooftops and garages across America for many years to come… assuming the bill passes, which you should urge your representatives to do.
Thank You!
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