Solar power is putting energy generation in the hands of homeowners. Virginia resident Jon Ward told the nonprofit Solar United Neighbors that he's "glad the government is incentivizing it," lowering otherwise costly barriers to access.

The scoop

The Inflation Reduction Act helped fund Ward's home installation of a 4-kilowatt solar array in 2023. With the solar Investment Tax Credit, he was able to lower the cost of his energy system by around $4,500 and increase his energy savings for the future.

As he told Solar United Neighbors, "It would be an awful lot to put in without the 30% tax credit." But the solar array now means he can lower his reliance on utility companies and fossil fuels. 

Ward says his setup meets all of his home's electricity needs. He can even divert excess energy to his community, earning him credits through net metering. This process allows solar array owners to earn credits for when they need to draw on electricity from the power company, such as at night. It also helps add solar energy to local infrastructure.   

It's important to note that IRA incentives may not be available forever, as President Donald Trump has indicated that he would like to eliminate these programs. 

Removing these programs would still require an act of Congress, but for anyone hoping to save money on energy-efficient systems and appliances, it might be wise to act sooner rather than later. As of publication, residents of the United States can still claim the solar tax credit.

How it's helping

Investing in solar panels could be a huge benefit for your budget. According to EnergySage, the average American homeowner can save around $10,000 with solar tax credits.

Switching to solar energy can also reduce household pollution. Unlike dirty energy sources like coal, oil, and gas, solar panels do not release the heat-trapping emissions that contribute to our planet's warming and can drive extreme weather events as well as health threats like asthma.

If you're interested in installing solar panels for your own home, there are a variety of resources to check out. One option is exploring EnergySage's free tools for solar installation estimates and quotes. 

By combining solar with other steps — like switching to energy-efficient appliances, properly insulating your home, and investing strategically in smart technology — you can achieve financial savings and reduce your energy consumption.

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What everyone's saying

Solar panels remain an enticing way to be more eco-friendly and reduce costs.

Jorge Solares installed solar panels to offset electricity costs and focus his family's money on raising their children. He told NPR, "We have a brand new baby, and we're hoping to make that investment, so at some point we won't have to pay [for] electricity and focus on her spending."

There is some worry that the solar incentives will disappear under the Trump administration. Many in the r/Solar subreddit are discussing whether the tax credits will be removed in 2025. So far, though, there has been no conclusive action to eliminate the IRA, so consumers currently still have time to take advantage of its incentives. As one commenter wrote, "It would take … Congress to eliminate/change solar credits."

For now, the solar tax credit can be a big boon for anyone interested in installing solar panels to benefit their household, community, and the planet.

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