How Will The Inflation Reduction Act Affect Your NY Solar Credit?
Senators are close to passing the Inflation Reduction Act, a bill that will include up to $370 billion for climate and clean energy funding. The bill could even directly impact your Long Island solar installation. Your NY solar credit is derived, in part, from a federal tax incentive.
Here’s what the bill could mean if you’re considering solar power on Long Island.
How Congress Could Help You Get a NY Solar Credit
In addition to NY, solar credits like personal tax credit and contractor incentives from NYSERDA, residential installations in New York are also eligible for a federal tax incentive. The federal incentive works with the NY solar credits to significantly reduce the cost of solar power on Long Island.
As it stands today, the current federal credit provides a 26% refund on the cost of a solar system. But this will decrease next year and will be gone by 2024 if the government doesn’t extend it.
There’s a provision in the Inflation Reduction Act that will not only extend the federal credit but will also increase the percentage of it.
The bill, which has widespread support in Congress, calls for 10 years of federal solar tax credit funding. The credit will be set at 30% if the bill passes. This will decrease to 26% in 2033 and then 22% in 2034.
This will ensure that homeowners can enjoy more affordable solar, even if NY solar credits decrease in the meantime.
Incentives like this help to convince more families to switch to solar power on Long Island.
Why is The Government so Invested in Solar Panel Installations?
The U.S. government has gradually shifted towards energy policies where more renewables are used. This is intended to help the nation achieve its long-term climate goals. Traditional energy sources like fuel oil and coal produce high amounts of pollution, which has been proven to contribute to global climate change.
But it’s not just the climate that’s affected. Reserves of natural resources continue to decline. With a growing population and increased demand for electricity, the government is seeking alternatives to support and work alongside the national grid. Switching to renewables is environmentally beneficial, but it also means less demand for electricity on the grid.
For you, this means that your home will be more environmentally friendly, and you could even enjoy a more reliable service when compared to the utility company.
A Long Island Solar Installation Can Protect You From Outages
With solar, you’ll save money. Your bills will shrink and you’ll generate a return on investment over time. If you get a Long Island solar installation with a battery backup system, you could even make your family immune to grid outages.
The grid on Long Island is old and often unreliable. It is particularly vulnerable to storms, which are becoming more intense and more common as climate change occurs. A solar battery with a Long Island solar installation can store clean energy and deploy it to your home in an emergency. This means that even if the grid goes down, you’ll be able to keep your lights on and use essential appliances and electronics.
You can also use a solar battery to further reduce your reliance on the grid. The energy that you store during the day could be deployed in the evenings when rates peak. This will maximize the savings that you enjoy with solar power on Long Island.
Get a NY Solar Credit Assessment from Long Island Power Solutions
The Long Island Power Solutions team can provide an energy savings assessment with a cost/benefit analysis to see how much you could save with solar. We can even apply expected tax credits to our no-money down financing with an initial interest-free period.
To start, get your free solar estimate online today. With federal and NY solar credits, you can get more affordable solar panels for a home that is better for the environment and easier on your wallet.