For years, solar panels have been a great way to lower energy bills, reduce greenhouse gas emissions, avoid power outages, and make your home or business better for the environment. But for those who are still on the fence about residential or commercial solar installation, the recently passed Inflation Reduction Act legislation has made 2023 a particularly great year to go solar in Lexington, Indianapolis, Louisville, and the surrounding areas.
Inflation Reduction Act Tax Credits Make Solar More Affordable Than Ever
One of the best parts of the Inflation Reduction Act is the updated federal solar tax credit, or the solar ITC (investment tax credit). The IRA increased the federal solar tax credit to 30% last year, which means that in 2023, home and business owners can reduce their federal tax liability by 30% of their solar installation costs and roll over any remaining balance to their 2024 taxes, too.
The Inflation Reduction Act solar tax credit saves the average customer thousands of dollars and for 2023, the credit will be as high as it’s ever been – back to 30%. The ITC applies to solar batteries as well, making it more affordable to maximize your solar energy upgrades for backup or standalone storage.
With Solar, You’ll Save More on Electrification Upgrades
Once you have solar panels installed, you’ll start benefiting immediately from 100% clean and renewable energy. That means that it’s in your best interest to electrify as many systems and appliances as you can, so that as much of your house or business runs on free solar power as possible.
Even better, there are additional incentives from the Inflation Reduction Act in 2023 that you can use to save money on electrification and energy efficiency upgrades, including rebates and tax credits for heat pump installation, heat pump hot water heaters, insulation, air sealing, and more.
The Sooner You Install Solar, the Sooner You Start to Save
With the rapid pace of technological development, many people delay solar panel installation in the hopes that the price of PV panels might be more affordable in future years or incentives will be greater. But what they’re forgetting is that the entire time they wait for costs to drop, they’re still paying full price for grid electricity, and rates are going up! The smartest time to go solar in Cincinnati, Louisville, Lexington, or Champaign is always today, so you can start benefiting from free solar energy immediately and take full advantage of all the federal and state solar incentives available where you live.