Major tax breaks for home improvements could go away soon — here's how to take advantage while you still can

Solar tax credits offered through the Inflation Reduction Act have helped thousands of Americans save big on going solar, but these incentives may not be around much longer. Here's how to snag massive solar rebates while they're still available. 

The scoop

Solar panels are a major investment, but they're one of the most valuable home energy upgrades since they can significantly reduce or even eliminate your electric bill, as EnergySage explained. 

Though it takes an average of 7.1 years for most homeowners to break even on solar installation costs, you'll likely save between $31,000 and $120,000 over 25 years by switching to sun-powered energy. And with the 30% federal tax credit for solar panels, you can keep even more money in your pocket. 

The average tax credit values will vary depending on the cost of home solar systems in your state. EnergySage reported that in Wyoming, for example, rooftop solar panels will cost about $44,000 on average. That means homeowners can grab roughly $13,200 in tax credits for investing in this green technology. 

But if you plan on installing solar or making other energy-efficient home improvements, you should act sooner rather than later to lock in IRA tax credits and rebates. President Donald Trump has threatened to dismantle the climate law, prompting some people to expedite home solar projects.  

Trump ordered a 90-day pause on IRA spending, but the executive order does not affect tax credits for clean energy upgrades — including solar. A full repeal of the IRA would require an act of Congress, but with its future uncertain, it's a good idea to claim any incentives you're eligible for while you can.

How it's helping

There's never been a better time to install solar. Last November, EnergySage reported that quoted solar prices hit near-record lows at $2.69 per watt, and they've since dropped to around $2.56 per watt. 

When you factor in the amount you'll save on electric bills over your system's lifetime, along with potential tax breaks and rebates, going solar is one of the best eco-friendly decisions you can make. Plus, switching to solar reduces your home's carbon output since it produces no air pollution. 

When you're ready to shop for solar, EnergySage's free tools can help you get quick solar installation estimates and compare quotes from vetted contractors. 

Which of these factors is the biggest obstacle preventing you from getting solar panels? The upfront cost 💰 The way they look 🙈 Not sure where to start 🤔 No concerns here! 😄 Click your choice to see results and speak your mind.

What everyone's saying

EnergySage explained that, regardless of politics, solar is a win for everyone since it creates thousands of jobs, reduces energy bills, and benefits the environment. 

"I've helped people with many different priorities and viewpoints go solar," said Nicole Turley, an EnergySage advisor. "Whether you want to support domestic energy production, save on electric bills, contribute to a cleaner environment, or gain energy independence, solar just makes sense."

"Energy tax credits have spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference," noted 18 House Republicans in a letter to Speaker Mike Johnson about the IRA's benefits, per EnergySage. 

If you want to show support for the IRA, consider contacting your state officials and telling them why it's important to have communities powered by clean energy. Sharing your opinion could pressure lawmakers to ensure solar tax credits stick around, giving more families access to affordable energy.

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