Build Back Better has officially been passed by The House of Representatives, marking a major win for the Biden Administration as their big spending plan takes a major step forward. The White House is calling Build Back Better “the largest effort to combat climate change in American History.” And that may prove to be very true.
With solar rebates and incentives more generous than ever before, the time for homeowners to play their part in combating climate change by going solar is now. The Fed’s tax credit remains at 26% through 2022, making this next year ideal for homeowners looking to install solar panels on their homes’ roofs.
And Build Back Better will play a big part in this effort, as green energy including solar panels and electric cars will be invested in by the federal government at a level we’ve never seen before. According to the White House, the new legislation will reduce the cost to install solar panels by roughly 30% through new rebates and an increase in the Fed’s tax credits.
Solar for All Americans
By making solar panels more affordable and accessible to U.S. households, Biden plans to help the average American citizen save hundreds, if not thousands per year in energy bills, according to a report from Fox Business. The substantial upfront costs to install solar panels may disappear entirely, with zero down options now available to homeowners looking to install rooftop solar arrays.
Under the previous tax credits, rebates and incentives offered by the government, most homeowners were paying around $12,000 in total costs to install solar panels, according to a report from Consumer Affairs. Cutting that number by 30%, while also offering zero down installation options, will be a major win for homeowners nationwide.
Biden plans to use the Build Back Better program to cut that cost with increased federal tax credits. The final testing ground will be The Senate, which still needs to pass the bill before it becomes the law of the land.
Calculating Your State’s Solar Rebates and Incentives
This is where the real savings comes in. The Build Back Better bill cutting your total cost to go solar by 30% is an incredible opportunity for any homeowner considering ditching their legacy, fossil fuel power company for cleaner, greener energy.
But each state is a bit different when it comes to rebates and incentives, and that’s where you’ll want to crunch numbers under a microscope. Overall, most homeowners who go solar end up saving thousands, if not tens of thousands in total energy costs over the lifetime of their solar panels, which typically last around 30 years.
Combating climate change and becoming carbon neutral are priorities for the Biden Administration, and, with the current momentum from the House of Representatives, this signature spending bill seems to be on its way to becoming passed into law sooner rather than later.
Unique Factors Can Affect Solar Costs
Solar is different for each homeowner. To calculate just how much installation will cost, you’ll want to consider your electricity consumption and needs, the types of solar panels you’ll be installing, where you live and the square footage of your home. Some savvy homeowners are able to get solar installed for zero down, meaning no upfront cost at all, and a smaller solar panel system can run as little as $5,000 in total cost.
One way to maximize your savings is by taking advantage of tax benefits for home renovations that substantially increase a property’s value. Solar panels can increase a home’s appraised value by 4% or even more, making clean energy home improvements a great candidate for tax credits.
At the end of the day, Biden’s new Build Back Better bill looks like a potential game changer for homeowners considering solar. Cutting the installation cost by 30%, while simultaneously reducing your monthly electric bill by half, or even more, is a win-win for everyone. It appears 2022 is shaping up to be the best year ever for going solar.