What is the Inflation Reduction Act (IRA)?

inflation reduction act, how it benefits solar and weatherization project in massachusetts and rhode island

According to the EPA website, The Inflation Reduction Act of 2022 (IRA) is the most significant climate legislation in U.S. history. IRA’s provisions will finance green power, lower costs through tax credits, reduce emissions, and advance environmental justice. 

What Does the Inflation Reduction Act Do for the Environment?

  • Makes huge investment in climate change: the goal is to reduce carbon emissions by roughly 40% by 2030.

How Does the Inflation Reduction Act Accomplish This?

In Three Ways:

1. Clean Energy

  • It provides up to $14,000 in rebates to have energy-efficient heat pumps and other energy-efficient appliances installed in homes and businesses.
  • It makes available or extends the 30% federal tax credit to install solar panels on roofs for homes and businesses.
  • It provides up to $7,500 in federal tax credits for the purchase of new electric vehicles and $4,000 in federal tax credits for the purchase of used electric vehicles.

2. Building a Clean Energy Economy

The goal to be reached by 2030 is as follows:

  • 950 million solar panels installed
  • 120,000 wind turbines to be built
  • The construction of 2,300 grid-scale battery plants
  • Create manufacturing jobs: with more than 60 billion invested, it aims to create millions of clean energy jobs here in the United States.
  • Create countless jobs for individuals in the weatherization field
  • Invest in disadvantaged communities cleaning up pollution and reducing environmental injustice.
  • Protect millions of acres of national forests in order to promote climate resilience.

3. Reduce Pollution

  • Greenhouse gas emissions will be reduced by 1 gigaton or 1 billion metric tons by 2030. This is expected to have 10 times more impact on climate than any other piece of legislation ever enacted by congress.

What Does the Inflation Act Mean for Homeowners in MA and RI?

It includes over $350 billion to fight climate change and fund green energy projects, including home upgrades through weatherization and Solar.

Why is Weatherization Important?

  • Space heating and cooling account for over 40% of all energy used in buildings. Many buildings in the U.S. are old, inefficient, and in need of air sealing and insulation upgrades. Weatherization providers check existing insulation levels and major energy systems including heating, cooling, and hot water, in search of potential energy-saving measures to be installed. 
  • Weatherization is the prerequisite to going solar. In many cases, weatherization reduces the energy demands of a building significantly. Reduced energy demand means fewer solar panels are required to meet those demands. Fewer solar panels are required means you save money.

What Does the Inflation Reduction Act Mean for Solar?

  • Solar energy production and solar storage are key to the United States’ climate and carbon reduction goals. The Inflation Reduction Act allocates a significant amount of spending to tax credits and incentives for onsite clean energy production and battery storage. These credits and incentives help to make solar more affordable for the average person.

Contact Energy Geeks for More Information

If you’d like more information on how you can minimize energy consumption and maximize savings while making your home more comfortable all year round, then contact Energy Geeks. Our mission is to provide the most comprehensive and efficient solutions to reduce energy use in your home. 

Call401-766-1540  |  508-444-9800  |  Get No Cost Estimate

the staff at anergy geeks
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