The Inflation Reduction Act has passed and with it a new solar tax credit to help your family’s budget.
Oklahomans face ongoing summer pain points: utility bills, gas prices, and inflation, lingering into autumn. In fact, the latest OG&E rate hike implemented on July 1 will continue contributing to higher-than-ever household bills for the foreseeable future. In recognition of increased consumer costs throughout the nation, the recently enacted Inflation Reduction Act aims to address issues like health care, taxes and clean energy.
Solar power and what Oklahomans can expect
According to the federal government’s official summary, the clean energy portion of the Inflation Reduction Act will make it possible for 7.5 million households to install solar power on their roofs through a 30% tax credit. Report data estimates savings as a result of the incentive at an average of $9,000 over the life of the system or at least $300 per year.
Tax credits will be applied to purchases of solar power systems for the next decade and beyond (but the amount is changing):
– 30% tax credit: 2022-2032
– 26% tax credit: 2033
– 22% tax credit: 2034
“What this initiative means for Oklahomans is the opportunity to make the move to solar and see return on investment sooner,” said J.W. Peters, Solar Power of Oklahoma (SPO) president. “In light of inflation and inevitable rate hikes, consumers are looking for ways to reduce costs, and solar allows more control over energy consumption through efficient usage models, fixed costs and predictable monthly billing. The federal government has formally recognized the positive impact solar can have on family budgets.”
Long and short-term savings
Solar Power of Oklahoma estimates customers have realized more than $2 million in electric bill savings this summer. See one local family’s summer-over-summer experience with a $200 electric bill on a modified usage plan versus a $20 electric bill after switching to solar.
Financing options typically replace the amount of money dedicated to a monthly electricity bill each month. Working with a traditional lender like a bank or credit union is an option to finance solar power systems, but SPO also leverages its network of lenders to access low interest rates for customers with approved credit.
Credit scores of 640 or higher and without a recent history of bankruptcy typically qualify. Preferred lenders offer loans at rates as low as 0.99%.
“Solar power is an investment in your family’s future. Switching to solar allows families to reallocate funds from utility bills, benefiting their household in the long run.
Find out more about how solar makes for a more predictable household budget.
The Inflation Reduction Act ties closely with official goals to increase clean energy in homes, businesses and communities by 2030. Oklahoma City ranks as one of the top 50 cities where solar power offers the best value, according to a 2015 study. Find out more about municipal efforts to switch to solar in cities across the nation.
Plan: 2,300 battery plants, 120,000 wind turbines, 950 million solar panels. Diverse strategies for a greener future. It also offers up to $7,500 of tax credits applicable to new electric vehicle purchases.
Join the movement
“We welcome the opportunity to assess customers’ homes and bid competitively,” said Peters. “The bottom line for our customers is savings, and we’re here to streamline the process.”
Could solar be an ideal fit for your household? Fill out the form below to contact our solar advisor for next steps.