If signed into law as written, the climate bill before the U.S. Congress would change the calculus for American households thinking about going solar. The legislation stands to make that transition more affordable while also subsidizing purchases of electric cars, heat pumps, high-tech water heaters and battery-storage systems — clean-energy upgrades that will spur more household demand for electricity. There are so many incentives to install solar that the Inflation Reduction Act of 2022 might be more aptly titled the “Electrify Your Life Act.”
“As your costs for electricity go up, the reason to go solar will become even stronger,” said Vikram Aggarwal, founder and chief executive of EnergySage, a Boston-based company that operates an online solar marketplace for consumers.
The climate bill, a surprise agreement between Sens. Joe Manchin and Chuck Schumer, would restore a 30% tax credit for residential solar systems — making it applicable to panels installed in 2022 – and extend the program to Jan. 1, 2034. Leased or purchased battery storage systems would likewise qualify for a 30% credit, which can also be taken in 2023 for homeowners who buy batteries.
