How the Inflation Reduction Act Can Help You Decarbonize Your HomeSeptember 23, 2022
In our previous blog, we discussed what the inflation reduction act was and what it means for you and your investment in solar energy. In this post, we will further expand on this topic and discuss how you, as a homeowner, can go about the process of decarbonizing your home with incentives from the residential clean energy credit.
What Does Decarbonize Mean?
Decarbonizing a home or building describes the process of decreasing its carbon dioxide emissions. Many homes run on fossil fuels and non-renewable energy sources, whether it be the gas you burn in your stove, the oil you use to heat your home, or even an indirect emission such as the fuel that is used to generate the electricity for that lamp you leave on all night. Every modern luxury unfortunately comes with a price to pay.
Now more than ever, we are beginning to see the effects of climate change. At this point, it is common knowledge that we must change the ways that we fuel our daily lives and society, or else we may face repercussions that may not be irreversible. The Inflation Reduction Act, recently passed by the Biden Administration, rewards people for shifting the common practices they use to efficiently run their homes to be more environmentally friendly.
How Can I Decarbonize My Home?
Decarbonization can take many forms, as it is simply an attempt to reduce your home’s carbon footprint. This can be as simple as swapping out or improving the insulation in your home or the efficiency of your doors and windows so that you don’t need to use as much heat or air conditioning. This could also be installing skylights for a natural light source.
Although there are several credits and rebates available for people to claim on their taxes in regard to decarbonization, which are explained in detail in this article by Fast Company, one the largest incentives is the Residential Clean Energy Credit.
Decarbonizing with Solar Energy
One of the most common and easiest ways to drastically decrease your home’s carbon production and save you money is to switch to solar energy. By installing solar panels, you can greatly decrease or eliminate what you buy from a utility company.
One of the biggest barriers to installing solar energy in most homes is ultimately the cost. Although it has been proven that most people earn their cost of installation back in savings in the first decade, for many people who can only afford the necessities of daily life, an investment in solar energy does not seem like an option. In Massachusetts it is common to return the investment in just four or five years, thanks to nation-leading SMART incentives.
Fortunately, with the Federal Incentive Tax Credit, owners of residential homes can get significant tax breaks when they install solar systems, saving even more money. This is great news for renewable energy, as this incentive will hopefully inspire more homeowners to consider investing in solar energy, saving both their money and the environment.
To learn more about the Residential Clean Energy Credit and what it means for you, check out our previous blog post. If you are interested in exploring a potential solar system installation, contact BlueSel and get a free custom estimate today!