ROCHESTER, N.Y. (WROC) — The Inflation Reduction Act recently passed into law will pour billions of dollars into creating new spending and tax incentives for those who choose to invest in clean energy technology.
With that in mind Meteorologist, Christine Gregory spoke with one local solar power company to discuss how exactly this will not only affect customers but also drastically change the solar power industry.
For the first time since the infancy of the clean energy industry, there now exists a government policy that supports what they do for more than a couple of years at a time. CEO of GreenSpark Solar Kevin Schulte says that because of the Inflation Reduction Act the solar industry now has enough security that will allow manufacturers a stronger willingness to invest in the technology long term.
“The bill does a very good job of incentivizing the on-shoring of solar panel manufacturing and that represents an opportunity not just for a decrease cost in the equipment itself but for it to be American made,“ Kevin said.
Kevin says that homeowners and businesses will see the cost of renewable energy technology go down over time as the capacity to install the technology goes up, which will help their goal of combating the climate crisis locally.
“This opportunity for us gives us a longer window to sell to our community to bring options like solar, battery storage, electric vehicle charging to the customers here,” Kevin said.
The tax credit for installing solar equipment has increased from 26% to 30% starting anytime this year up to 2032 with the opportunity for a 40% credit if you use domestic, or American-made content.
“Solar is no longer this nascent, start-up industry. We’re installing hundreds of thousands of these solar panels every year at this point. They work, they’re warranted for 25 years by really reputable companies, and they’ve just been working for years and years and years,” Kevin said.
While there is maintenance to solar, these companies have been able to control the maintenance in such a way as to keep costs at a reasonable rate for all current and future customers who have an interest in investing in renewable energy.
Between the 30% federal and the 25% state tax incentives — 55% of your solar installation cost is covered. You also get a grant from NYS Energy, Research and Development Authority to help bring the cost down even more.