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Inflation Reduction Act climate provisions could save you money with clean-energy tax breaks

“It could be as much as 14,000 dollars available in rebates and what’s unique about this is that it rolls over every year,” said Delph.
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Posted at 12:29 PM, Feb 06, 2023
and last updated 2023-02-06 18:51:47-05

A climate bill is making it possible for everyday Americans to afford clean technology like heat pumps and solar panels. Something that the owner of Hometown Heating and Cooling, Tim Delph says will be a game changer.

“It could be as much as $14,000 available in rebates, and what’s unique about this is that it rolls over every year,” said Delph.

The Inflation Reduction Act of 2022 included a slew of incentives like tax credits and rebate programs meant to encourage homeowner investment in energy efficiency and clean-energy technologies.

"We’re expecting that top-tier technology to qualify for it, so they want to see the most efficient technology being installed with these rebates," Delph said.

The rebate program would reward eligible households for energy savings. Those amounts could increase for low or moderate income households.

“Depending on if you qualify for it, it could be like $8,000 in rebate and then there’s other additional rebates for updating your electrical panels and other components in your home,” said Delph.

The only problem? Figuring out what those qualifications are.

“None of those details are ironed out yet,” said Delph.

The Inflation Reduction Act is a federally funded program passed onto the states to be implemented.

Delph says right now, they don’t know what the efficiency requirements are for people to meet the qualifications and there is no way for people to find out that information either.

“We’re supposed to provide the rebates to customers and then get reimbursed by the government and since there’s no way to streamline that process… everyone is sitting around like, ‘well let us know when you figure it out,’” said Delph.

So, when will everything be figured out?

“They’re saying the program won’t be ready or roll out until probably mid-year in the third quarter,” said Delph.

But in the meantime, there are other ways people can take advantage of the Inflation Reduction Act. Other elements of the bill would help make it easier for folks to invest in solar technology.

“Now, solar is affordable”,” said Jackson Rodgers, the area manager for Purelight Power.

He says in the past, that wasn’t the case, but now: “Just about any homeowner with a power bill, if you own your home, and have a credit score above 600, with the tax incentives you can replace your existing power bill with an investment in solar,” said Rodgers.

Rodgers predicts about $6.5 to $7 million staying in the local economy if they install the amount of solar he anticipates.

“Never have we seen a better time to go solar, never ever,” said Rodgers. “If yesterday was the best day to go solar, today is the second best.”

An earlier version of this article included incorrect numbers. It has since been updated.