The Inflation Reduction Act of 2022 has been the story of the quarter in the cleantech world. It will do much to shape the USA’s clean energy and electric vehicle growth and development in the coming decade. We have been especially focused on the EV tax credit portion of the bill since it’s a bit controversial and complicated, and since the EV market is a more diverse and discussed consumer market. However, much of the bill is focused on increasing adoption of solar energy, stationary energy storage, and energy efficient appliances. Solar power giant SunPower came up with a list of 10 things in the Inflation Reduction Act (IRA) that can “change your home and fill your wallet.” Let’s have a look at SunPower’s list:
- 30% tax credit on solar systems.
- 30% tax credit on energy storage technologies.
- Tax credits for home builders.
- Up to $7,500 tax credit on electric vehicles (EVs).
- 30% tax credit on EV chargers.
- $8,000 rebate on heat pumps. (“If you mean certain income requirements, you could be eligible for a rebate when installing a heat pump, which, contrary to its name, can be used to both heat and cool your home.”)
- $1,750 rebate on heat pump water heaters. (“Changing the way you heat water in your home could get you this rebate, provided you meet certain income requirements.”
- $840 rebate on electric stoves, cooktops, ranges, and ovens.
- Up to $4,000 rebate on breaker box upgrades and $2,500 rebate on electrical wiring. (“Need to make some home repairs before switching to renewable energy? You could be eligible for rebates on these upgrades that might be required before adding a solar system.”)
- Cleaner air. Ah, yes, that benefits us all!
So, whether for going solar, improving the energy efficiency of your home, or electrifying your transport (through an electric car and/or an EV charging station), there are a lot of ways to get a boost from the US government in order to cut emissions. Many people will learn about these opportunities (often simply through their accountants, who are always looking for ways to cut their clients’ taxes) and will green their houses or vehicles in ways they wouldn’t have done before.
That’s all a nice overview of the cleantech benefits available via the IRA, but it’s just that. How does one go through the process of considering the options, making a decision, and implementing some of these technologies or upgrades? SunPower knows all about it and is going to spend more time in coming weeks or months giving some real-world examples. “It’s probably not surprising that there are extra benefits and some limitations depending on your income level, location or other personal factors. To help illustrate how you can get the most out of the bill, we’ll be showcasing real-world scenarios of people planning their own tax breaks, rebates and incentives over the next few weeks. Stay tuned!” I’ll keep an eye on what SunPower shares and be sure to highlight anything I find particularly interesting. You can keep an eye on the SunPower blog if you wish as well. In the meantime, here’s one more look at SunPower’s top 10 list in infographic form:
Featured photo courtesy of SunPower.
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