The new inflation discount law can help you get relief from rising electricity and gas bills while helping the environment.
An IRA offers a discount if you plan to buy a solar panel, electric car or pay for these cars. Laura Derks of Oak Park has installed solar panels on her four-bedroom home and is already seeing savings on her energy bills. “Everything helps these days,” he said.
In fact, his electricity bill has dropped this summer compared to last summer. “It’s going to be $100 to $150 and I think the highest bill this summer is $45 when it’s in the 90s, in June, you know, really hot,” Derks said.
On top of that, he took advantage of federal and state credit to reduce the cost of the project. “We have 18 panels on our roof,” he said. “It cost maybe $22,000 to buy the panels, install them, and put them together. But with the federal tax credit, the state renewable energy credit he would get would be about $8,000 or $9,000. This will help, and it is expected to pay for itself in about eight years.”
Derks got his credit from previous programs, but under the new Depreciation Act, the government savings went from 26% to 30%, and they were extended for another 10 years. State credit was also extended.
“Illinois leads the nation in state incentives for solar energy,” said Jack Johannesson of Windfree Solar. “So you can get 30-40% off your job through Illinois state incentives. These usually come about 10 months after the job ends and are paid as cash to the owner.”
Johannesson said these state credits are separate from the federal credit, which means you can get a total of 80% of your work paid in Illinois. There are also additional credits for those who qualify in low-income areas, as well as others. “Both federal and state laws provide additional incentives for solar energy use in low-income communities, low-income households, and residential use.”
Johannesson said some people can get their electricity bills as low as $15 to $20 a month in our area. He hopes a recent installation in Downers Grove will yield similar results.
When the sun reaches the sky, the energy from the sky reaches a device that converts it from “natural DC energy” to “dual AC energy”. This works on your home service panel and your ComEd meter. “You can use this energy in your home and get credit for it on your ComEd account.” Johannesson said.
Many solar companies will also help guide you through the process and get government funding back. For more information, see Solar Power in Illinois:
And if you want to be green on the road and save gas, there are credits on new electric cars.
“$7,500 in tax incentives will go to those who want to buy an electric car. If you are single, you will not earn more than $150,000 per year. If you’re married and filing jointly, you can’t earn more than $300,000,” said Garrett Boorojian, managing director at WaveCapital Partners. Boorojian said you may also qualify if you bought an electric car or EV before the law was enacted.
“There will be deferrals and people will still be able to use the tax benefits they have,” he said. However, eligible vehicles must be assembled in North America and some of these manufacturers have reached the cap of 200,000 EV credits, meaning they are not currently eligible. You can check the Department of Energy website before shopping. Don’t forget to charge your car.
There is also a 30% credit available on EV battery chargers that can also run on solar power. “When that electricity goes into the grid, we get a credit for it, which lowers our electricity bill, our electricity bill for the last few months was $14,” said Jim Lewis of Flossmoor.
There are also state credits available when you buy an electric car. You can get state and federal rebates even when you buy a used electric car.
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