The US Energy Information Administration (EIA) published on August 9, 2022 that they report electricity costs on a national average have increased 6.1% from 2021. The forecast for 2023 is an additional 2.5% increase from 2022. 2023 forecast is a 13.4% increase from 2020*.
The majority of electric is produced using natural gas and the current price is around all time highs with the potential to go higher due to current geo political events.
So when you do you return on investment for your solar system you might want to factor in the price of electricity continuing to climb higher for the foreseeable future.
*Independent Statistics & Analysis, U.S. Energy Information Administration, eia.gov/outlooks/steo/report/electricity.php
The Inflation Reduction Act (IRA) of 2022 (H.R. 5376) has been signed into law and there are changes to solar incentives. The two big changes is the credit amount and the inclusion of battery storage.
Solar Tax Credit
The item that impacts residential or commercial solar incentives, otherwise know as Solar Tax Credit or Clean Energy Credit, The previous program started at 30% credit and dropped each year. Currently this plan would credit 26% of a solar system.
The change is that the credit goes back to 30% in 2022 and stays at that rate until 2032. Yes more than 10 years you can apply for this 30% tax credit.
The credit is applied to your federal tax filing for the year the system is installed and operational. While planning keep in mind the time required for permitting, ordering, delivering, installing and operationalize your system may take longer than you might think. The IRA will also create demand for solar systems increasing the time to credit.
Also keep in mind that the credit is for the purchase of a solar system, regardless is you finance, and does not cover solar systems that are leased. Read more in my post http://myatlassolar.com/solar-finance/financing-solar-panels
Solar Tax Credit Bonus
It is believed that you can increase your credit by 10%, 30% to 40%, by purchasing domestically produced hardware, 100% of steel and iron must be US manufactured in the United States. Solar panels, inverters, and electrical gear – the goods must initially be 40% US manufactured, though this percentage will increase in the future.
Battery Storage Credit
The battery storage credit is now irregardless of being connected to a solar system. You could just install a battery system.
A battery storage system is required on your solar system if you want to be completely off the grid. It stores power during peak times and provided power during times when your solar system is not generating, nights and bad weather for example. A battery system is not cheap and can be more than half of your total spend so including battery systems in the IRA is a significant benefit. Read more about battery systems in the following post – http://myatlassolar.com/solar-panel-battery-bank/is-solar-systems-battery-bank-a-good-idea