RENON POWER
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RENON SCENT | INDUSTRY NEWS
TOPIC
IRA Credits Impact
COUNTRY / REGION
United States
Introduction
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✦ What is IRA?
The Inflation Reduction Act (IRA), signed into law in August, represents the single-largest investment by the federal government to combat climate change in U.S. history.
One of the most significant provisions of the infrastructure law is the long-term extension of theinvestment tax credit (ITC), which was instrumental in launching the U.S. solar industry.
The bill calls for a 10-year extension of 30% of the cost of installed equipment to be tax exempt, falling to 26% in 2033, and 22% in 2034.
That 30% credit also applies to energy storage, meaning retrofits of batteries to solar arrays can benefit. This is all good news for homeowners interested in high-efficiency appliances, sustainable building improvements, electric vehicles, battery storage devices, and solar panels.
However, navigating the maze of incentives can be a challenge.
Image: Palmetto Solar
Palmetto Solar, a solar installer that's been in business for 11 years, conducted a survey to determine which of the incentives people are most interested in. These include heat pumps, electric vehicles, additional solar panels, solar battery storage, and more.
A survey was sent to Palmetto customers across the U.S. who purchased a solar energy system in or prior to September 2022, when the survey was conducted. More than 350 Palmetto solar customers from 20+ states responded to the survey.
DEMOGRAPHICS
POPULATION
More than 350 Palmetto solar customers who purchased a solar energy system in or prior to September 2022, from 20+ states, responded to the survey. 55% of respondents are located in the eastern United States.
Survey
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*About 20% of respondents were not yet producing power at the time the survey was conducted. While the respondents' average system size was 24 panels, more than 50% of respondents purchased a 16 to 30 panel solar energy system.
More than 70% of respondents named price as a primary factor in the decision to invest in energy-efficient technology, while 55% named incentives and credits.
Now that the Inflation Reduction Act incentivizes energy-efficiency upgrades, including home energy audits, high-efficiency (HE) appliances, and building envelope improvements, Palmetto is seeing a significant difference between adoption rates and interest—especially for solar battery storage and electric vehicles.
Important factors in decision to install solar.
Image: Palmetto
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Solar battery storage showed the greatest opportunity for market growth, having an adoption rate of only 5% and the highest interest rate at 61%.
Among the home energy-efficiency upgrades presented in the survey, solar battery storage captured the highest level of interest in four out of five U.S. markets.
In the Northeast, however, battery storage came in second to HE appliances at 57% vs. 59% respectively. Overall interest was highest in the Western and Midwestern states, where 70% of homeowners indicated interest in smart home battery storage knowing that incentives may now be available.
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When asked which upgrades might have the greatest impact on their financial savings, respondents favored solar battery storage and additional solar panels.
Just over a quarter of solar owners believe battery storage will have the greatest long-term impact on their financial savings.
*Reprint from PV magazine.
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