Based on title alone, the Inflation Reduction Act of 2022 offers little to suggest just how crucial it is in the fight against rising energy costs, but that is exactly what the new law does – and more. Most would agree that, even with new provisions for health care, prescription drugs, and aggressive corporate taxation, the act centers on renewable energy, climate change, and the reduction of carbon emissions. In fact, the Inflation Reduction Act is considered by many to be the most significant and meaningful piece of environmental legislation ever ratified in the United States.
The Inflation Reduction Act is expected to level the playing field between the fossil fuel industry and the renewable energy sector by steering consumers toward cleaner fuel alternatives. The goal is to spark demand by nullifying what is considered the most prominent barrier to renewable uptake – cost. Clean energy tax credits and incentives will give Americans the ability to make practical decisions about their energy consumption without price being the ultimate factor. Lower to middle income families will now have access to environmentally friendly products and services that have long been a privilege of the wealthy.
Summary of Consumer Benefits:
- Energy rebates for choosing and installing electric home appliances and energy-efficient retrofits
- 10-year tax credits for investing in heat pumps, rooftop solar, electric HVAC and water heaters
- Tax credits for qualified purchases of new or used electric vehicles
Not only will consumers be rewarded for their efforts, but energy providers and manufacturers will also benefit from capital investments in alternative energy sources. The Inflation Reduction Act will offer tax credits to help lower the upfront capital cost of clean power and provide generous incentives for renewable energy production. One key element of the new law is an extension of those tax credits from three years to ten which will subsidize solar and wind production projects over time and help curtail inflation in the future.
Hannah Solar has long been committed to making renewable energy affordable for everyone. We can now leverage the incentives found in the Inflation Reduction Act to help us reach that goal and better position ourselves as a leading provider of sustainable solar and storage solutions for years to come.