The American Energy Deal is official! On August 16, 2022, the most significant climate and clean energy bill in the US was signed into law. H.R. 5376, better known as The Inflation Reduction Act, includes policies that will promote the solar industry’s goal to account for 30 percent of all US electricity generation by 2030 (SEIA). The IRA will invest $300 billion in energy and climate reform which includes a $60 billion boost to manufacturing (NPR). These investments yield more American jobs, energy cost savings, incentives, and address the climate crisis.
US climate goals reflect that there will be 950 million solar panels operating in the US by 2030 (@POTUS). To meet this demand, the IRA will allow an influx of more union jobs. In fact, by 2030 estimates show that 40,000 direct solar manufacturing jobs will have been created. This will more than double the workforce (SEIA).
Solar Energy Cost Savings and Incentives
The IRA will make costs lower and energy cheaper (@POTUS). One such reason is the increase in the solar Investment Tax Credit (ITC). Before the IRA, business and residential projects would receive a 26 percent tax credit.
Now, the ITC reflects a 30 percent credit for the next 10 years! Credits for manufacturing various solar module and inverter components will also be available (PV Magazine). That means financial savings for the solar consumer and a decrease in the cost of American-made solar
Selling Power Back to the Grid
Another appealing advantage of having a solar battery is the ability to sell excess stored power back to your local power authorities*. This process, known as “net metering,” allows you to feed surplus electricity generated by your solar panels back into the grid. In return, you can receive credits or even cash payments from your utility company.
Achieving Energy Self-Sufficiency
Energy independence is a goal many homeowners aspire to achieve and adding a battery to your solar panel system is a significant step in that direction. By storing excess solar energy, you minimize your reliance on the grid and avoid exposure to rising energy costs. Whether you live in a remote area or a busy city, energy self-sufficiency provides peace of mind and a sense of control over any external power consumption dependencies. Plus, it’s a sustainable choice that reduces your carbon footprint!