News Report: Inflation Reduction Act Provides clean energy Benefits, but Many Americans Unaware
The Inflation Reduction Act (IRA) may not seem directly related to clean energy, but it does provide benefits for homeowners with solar power systems. These homeowners were able to avoid paying extra for electricity during the recent peak inflation period by generating their own electricity. This is just one of the benefits of installing a home solar power system, according to Shawn Fitzgerald, Vice President of Corporate Development and Product Strategy at SunPower.
However, despite the benefits of the IRA, nearly 250 million Americans are missing out because they are unaware of the program. SunPower’s Energy Switch Index report estimates that a quarter of low to middle income Americans and a quarter of Millennials and a third of Gen Z believe they are ineligible for IRA benefits. To address this lack of awareness, clean energy leaders across industry, policy, and nonprofits must take collective action to educate consumers about the benefits they now have access to.
One of the key benefits of the IRA is the solar Investment Tax Credit (ITC), which allows qualified American taxpayers to receive an income tax credit worth 30% of the cost of their solar system until 2032. This makes the cost of solar energy more affordable over the next nine years. The IRA also includes a tax credit for battery storage systems, further making solar-powered battery storage more affordable. Additionally, the benefits of the IRA are accessible to both single-family and multifamily homes, making it available to homeowners and renters alike.
Despite the affordability of home solar power, many Americans mistakenly believe it is not affordable. However, 90% of homeowners who installed solar in 2022 financed their systems with loans or leases, according to a recent residential solar finance report. Financing options allow customers to start seeing savings as soon as their system is activated. SunPower offers qualified customers a $0 down loan and competitive lease options. The average payback period for a home solar system is about nine years, which is less than the average warranty period of 25 years. Home solar can also increase the resale value of a home.
Through the IRA, qualified American taxpayers who purchase solar can receive an income tax credit worth 30% of the cost of their solar and/or storage systems. The IRA also provides incentives for getting home energy storage, with a 30% federal tax credit available for solar battery systems installed between 2023 and 2032. SunPower offers complete solar energy and storage systems that include solar panels, battery storage, and EV charging. The company’s mySunPower app allows customers to choose how they use their stored energy and monitor their system’s daily production.
The IRA has influenced the way SunPower interacts with prospective customers. The company is emphasizing programs that drive adoption and expanding efforts in areas transitioning to clean energy. The IRA provides a higher tax credit value, called a bonus credit, for certain projects sold via a lease to a customer. SunPower has set a goal to increase solar access in historically disadvantaged communities by 25% by 2025 and is working to promote equity in solar by targeting growth in dealers and subcontractors owned by minorities and women.
SunPower believes in energy equity and increasing access to affordable, clean energy for all Americans. The company is committed to making a meaningful impact on communities across the United States and supporting a more sustainable future.
Original Story at cleantechnica.com – 2023-08-24 17:16:26
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