Introduction to the Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) is a new federal law that provides a number of benefits for homeowners in California. These benefits include tax credits, rebates, and grants for energy-efficient upgrades, such as solar panels and battery storage.
The Inflation Reduction Act (IRA) includes a number of tax credits for homeowners who make energy-efficient upgrades to their homes. These tax credits can be used to offset the cost of the upgrades, making them more affordable.
Tax Credits and Benefits for Homeowners
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- Residential Clean Energy Property Credit
- Extended Tax Credit Benefit Till 2032
- Consulting with a Tax Advisor
- Inclusion of Standalone Storage Systems
Residential Clean Energy Property Credit: This tax credit is equal to 30% of the cost of solar panels and battery energy storage systems. There is no limit on the amount of credit that could be claimed under this category.
The IRA has extended the tax credit benefit till 2032 as homeowners will receive 30% investment tax credit for solar systems installed between 2022 and 2032 for all eligible homeowners with tax liability. The tax credit will drop to 26% in 2033 and to 22% in 2034. Homeowners who had installed their system in 2022 and haven’t yet claimed the benefit can claim 30% benefit instead of the 22% that was applicable earlier.
Talk to your tax advisor to learn more about your eligibility levels and how this translates into actual savings for your solar or battery energy storage system.
The IRA has also included standalone storage systems as another technology under the residential clean energy property credit. Standalone storage with capacity over 3KWh can benefit from the 30% tax credit.
Long-Term Savings and Energy Efficiency
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- Rising Energy Costs
- Making Energy-Efficient Upgrades
The cost of energy is only going to continue to rise in the future. By making energy-efficient upgrades to your home now, you can save money on your energy bills in the long run. The Inflation Reduction Act (IRA) provides a number of incentives to make energy-efficient upgrades more affordable. If you are a homeowner in California, we urge you to take advantage of the IRA benefits and make energy-efficient upgrades to your home today. Feel free to reach out to our sales consultants at 510-737-6228 or email us at info@nabuenergy.com to know more about solar battery installation in California and get a customized free quote for your solar and energy storage needs.