The Inflation Reduction Act has been a hot topic recently due to its impact on the economy, but it also has significant benefits for the renewable energy sector. Specifically, the act has the potential to boost the adoption of solar roofing and battery storage systems, which have long been touted as key solutions for a sustainable future.
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The Inflation Reduction Act contains provisions that can incentivize homeowners to install solar roofing and battery storage systems. One such provision is the extension of the solar investment tax credit (ITC), which allows homeowners to deduct 30% of the cost of their solar system from their federal taxes. This tax credit was due to expire in 2024, but the Inflation Reduction Act has extended it through 2028. This extension provides homeowners with a longer time frame to take advantage of the ITC, which can significantly reduce the upfront cost of installing solar.
Another benefit of the Inflation Reduction Act is its support for battery storage systems. The act includes a provision that allows businesses to claim a tax credit of up to 30% of the cost of a battery storage system. This tax credit is available for both residential and commercial installations and can help offset the cost of adding battery storage to a solar system. By providing a financial incentive for battery storage, the Inflation Reduction Act can encourage more homeowners and businesses to invest in this technology, which can help reduce their reliance on the grid and improve the resilience of the energy system.
Overall, the Inflation Reduction Act is a positive development for the renewable energy sector, and specifically for solar roofing and battery storage. By providing financial incentives for these technologies, the act can encourage more homeowners and businesses to invest in clean energy solutions, which can help reduce greenhouse gas emissions and build a more sustainable future.
If you’re interested in learning more about how solar roofing and battery storage solutions can benefit your home or business, contact American Home Contractors today to schedule a consultation with our team of experts.