Does the new infrastructure bill have solar incentives? The quick answer: yes! There are clean energy tax credits and rebates for homeowners in the new bill that include solar energy. So, whether you have an existing photovoltaic (PV) solar system or looking to make the transition, this bill could mean hundreds of dollars in savings for your home. Let’s explore some of the opportunities available when you go solar under this new bill.
Bipartisan Infrastructure Bill Boosts Clean Energy
Clean energy seems to be a hot button topic these days. And for more reasons than one — but we’ll talk about that later. The important thing is, since climate anxiety and general concern about the impact human beings make on the environment is a growing concern, the U.S. government has taken notice. While it isn’t the first time government officials have shown interest in climate change, the new infrastructure bill is being called “the largest effort to combat climate change in America.”
Obviously, this multilayered law is about to make history because of what it does. But does the new infrastructure bill have solar incentives? And what does that mean for the world around you? Let’s talk about the big picture impact of adding solar.
Does the Infrastructure Bill Include Solar?
For such a hot topic, doesn’t it seem fitting that the answer is equally (if not more) scorching hot? Solar energy is definitely in the grand scheme of the infrastructure bill — if you know where to look. So, does the infrastructure bill include solar? Of course it does! Here’s a brief overview of key features of the bill. And how it could do great things for solar energy, the environment, and your finances.
By the way, a free consultation with one of our Solar Energy Specialists could clear up any questions you might have about solar in your area.
Solar Advancement Projects
If you’re a fan of solar energy, then you know solar technology is always improving. With the new infrastructure bill, clean energy technology could finally get the support it needs to advance on a large scale. The legislation will fund larger programs to implement clean energy into the public sector, such as public transportation, buildings, and much more.
For relevant environmental justice communities grants will be provided to expand research and development of renewable technology, which includes solar! The legislation builds a Clean Energy and Sustainability Accelerator. The Accelerator will invest in a plethora of clean energy projects, including optimizing infrastructure and technological advancements. An interesting caveat of this program is that it will give 40% to underserved communities through the Justice40 initiative.
Solar Workforce Expansion
We know all about what solar energy can do for the workforce. However, the legislation aspires to build up not only industries in solar and wind, but also other promising renewable energy spheres. And that’s right here on American soil! The legislation intends to boost competition between already established manufacturing industries (steel, cement, etc.). It will use funding to subsidize investments in lowering carbon emissions and maybe even change the way America builds. This could do wondrous things for the economy.
In the 2020 Annual Solar Jobs Census, it was reported that over 230,000 people work in the solar industry. Currently, 2022 data is still being collected by the Interstate Renewable Energy Council (IREC). However, we anticipate the real number being much higher, especially once the new infrastructure bill is finalized. Hopefully, this bill will create many solar jobs to the tune of “hundreds of thousands,” according to The White House.
Infrastructure Bill Solar Tax Credit
Are you still wondering, “Does the new infrastructure bill have solar incentives?” Many people are wondering about the infrastructure bill solar tax credit. You’ve got the name of the game — clean energy. The new infrastructure bill provides solar rebates, as well as solar tax credits to make using clean energy more affordable. And solar fits the bill, as one of the most abundant resources on the planet! If you’ve heard anything about the federal solar tax credit, then you know that the 26% investment tax credit is set to decrease to 22% before expiring in 2024. The infrastructure bill solar tax credit will expand to 30% for residential solar homeowners, giving an additional 10% to qualifying low-income communities.
These provisions are geared towards saving homeowners hundreds off the cost of going solar. But they also can be used for the growth and amplification of existing home solar systems. The White House anticipates that the bill will cut down the monetary investment needed to install rooftop solar. Subsequently, solar energy could become more accessible to diverse communities.
Clearly, the infrastructure bill has many great things in store. So, what’s the hold up?
The Uncertain Fate of the Infrastructure Bill
The Bipartisan Infrastructure was passed on November 6, 2021, but don’t start throwing any celebrations just yet. There’s a chance this game changer could get held up on the congressional floor because of disputes over funding. Meanwhile, we need a cleaner, cost-effective solution to our growing problem. Let’s take a look at why the new infrastructure bill can bring on some much-needed reform.
The Current State of Energy
Right now, the way we consume energy needs a serious facelift. Here are a few of the major problems plaguing the state of energy in America.
- Outdated energy framework
- Pollution in the environment
- Rising electricity costs
Outdated Energy Framework
While your math teacher might’ve let you slide by with a C-, that’s a grade no one wants on their power grid. In 2021, the electricity infrastructure of America received a C- from the American Society of Civil Engineers (ASCE). They report that about 70% of the transmission and distribution lines (about 600,000 miles) are over 25 years old. Needless to say, ASCE raises doubts that the American electric grid network can fulfill consumer needs.
According to Popular Science, “The U.S. has more power outages than any other developed country.” Our power framework struggles to handle the massive amount of power consumption we demand from it. The U.S. electrical grids are constantly balancing the supply and demand for energy. Since our need for power isn’t going anywhere, it’s time we change the way we generate electricity to keep up.
Pollution in the Environment
If you didn’t know, “Energy consumption is by far the biggest source of human-caused greenhouse gas emissions, responsible for a whopping 76% (37.2 GtCO2e) worldwide.” Given that we produce most of our electricity using dirty fossil fuels, about 35 Gigatons (Gt) of carbon emissions are released into the atmosphere each year. That translates into one billion tons of pollution.
On a larger scale, greenhouse gasses cause devastating harm to our planet. One of the reasons is because pollution triggers global warming. Then, global warming ignites disastrous weather events and even superstorms. These climate disasters have been worsening in intensity and frequency every year, impacting the grid distribution systems’ ability to perform. And it doesn’t have to be this way! Home solar is so abundant. Additionally, the new infrastructure bill could make solar energy even more accessible, so that you can have a hand in reducing the total residential carbon footprint.
Rising Electricity Costs
For most homeowners, the cost of their electric bill is steadily climbing. The US Energy Information Administration (EIA) predicted that residential electricity in 2022 would cost an “average 14.2 cents/kWh.” If you can believe it, that’s almost 4% more expensive than it was in 2021. These predictions don’t even take into consideration the various random natural disasters, or even the ever-changing rates during peak times of energy usage.
Again, the demand for power isn’t declining anytime soon. And neither will the cost to produce it. That’s why it’s even more important for homeowners to take into consideration where their power comes from. If you know the source, you can anticipate electricity cost and usage.
Does the New Infrastructure Bill Have Solar Incentives?
Yes, the new infrastructure bill does include solar incentives and can do wonders for your budget. That’s if the government ever gets around to implementation. In the meantime, for folks looking to achieve a zero-emissions future, but are concerned about the cost of going solar – we have good news! There are already a ton of financial incentives available.
Contact your local Solar Energy Specialist to find out more about how you can save a sun-load with solar panels.Schedule Your Free Solar Consultation