Countless words have been used to describe influence and Incentives for homeowners In the Inflation Reduction Act (IRA), especially at a time when the legislation will spur a major wave of home electrification across the country.
The IRA’s success in electrifying America depends on the expansion of renewable energy sources such as solar and battery storage. But what is rarely discussed is that success in this area depends on the ability of clean energy companies, including solar installers, to effectively use the legal requirements to grow their businesses and serve the widest possible range of customers.
To do this, solar installers need to understand and communicate the actual changes and benefits that IRAs offer their customers.
Here are the three most important IRA terms an installer must master:
Solar power provides long-term certainty
We live in a time of global uncertainty, especially when it comes to energy. Global conflicts, and long-term fluctuations in energy supply and demand, translate into price volatility.
And not just on the gas pump.electricity bill too rise nationwide, even multiply in some states. To keep costs down and bring some certainty to their energy, more and more homeowners are looking to solar and battery storage as solutions.
However, solar installers still need to be able to communicate clearly with potential customers that installing panels can reduce or eliminate the risk of rising utility bills. After all, when customers have enough solar power to eliminate their utility bills, rising utility bills are no longer an issue.
Thanks to the IRA, making this case to clients has become easier. One of the most important provisions of the law is the extension of the 30% solar investment tax credit (ITC) for 10 years. Before the IRA was passed, the ITC was 26% and planned to drop to 22% in 2023.
sell long-term savings
While the decline in the value of ITC is a selling point for installers who can urge potential customers to act quickly for higher value ITC, solar installers can now enjoy both a 30% return on ITC and the certainty that the incentives will existed for ten years.
The passage of the IRA also helped ease just a matter of metering, especially in California. “At a base level, increasing the tax credit alone from 22% to 30% will help drive sales and offset uncertainty around the California Net Energy Metering 3.0 proposed decision,” said Bruce Chandler, regional sales manager for solar and energy storage at Panasonic distribute. “It looks like the opportunity presented by IRAs will more than offset potential Net Energy Metering 3.0 headwinds and provide growth opportunities for most installers in 2023.”
Battery storage incentives make resilience financially viable
The impact of severe weather on the grid was evident long before Hurricane Fiona devastated Puerto Rico’s power and water supply and Hurricane Ian devastated Florida.One Associated Press analyze Utility data submitted to the U.S. Department of Energy found that the number of severe weather-related outages has more than doubled since the early 2000s.
Not surprisingly, a big reason why people living in areas prone to severe weather and power outages consider buying storage is to keep power supplied in the event of a grid failure. In the past, though, there was no tax credit for purchasing a standalone storage system. “So far, there haven’t been many opportunities for standalone storage,” Chandler said.
IRA expands ITC benefiting solar customers to independent storageThis incentive makes storage more financially attractive to customers who are only interested in having backup power and to homeowners who already have solar installed and want to enhance their home’s resilience to power outages. “Most installers now expect to start seeing more demand from non-solar customers who may want to add standalone storage for resiliency or other reasons,” Chandler said.
Strong partnerships help installers take advantage of IRAs
Long-term policy support is critical to the massive growth of the U.S. solar market. IRAs expand and deepen this support. But seasoned installers also know that there are many other factors that contribute to their success—from hiring the right people, to acquiring customers efficiently, to using the best design software.
A key factor that cannot be ignored: the importance of working with reliable and knowledgeable equipment suppliers such as Matsushita.
At the most basic level, working with Panasonic can determine the long-term quality of solar panels and storage—both with full parts and labor warranties. The power of a trusted brand like Panasonic goes a long way in building trust and loyalty, keeping customers fully satisfied and motivating them to refer their friends and neighbors.
“We support our network of installations with a one-stop solution, so you can get back to electrifying your home faster,” said Mukesh Sethi, Panasonic Solar and Energy Storage Systems Group Manager. “And more importantly, leverage you and your customers Leverage your business with the backing of a legacy brand you know and trust for over 100 years.”
Partnering with Panasonic also ensures that equipment is compliant with ITC requirements. “Whether Panasonic Solar modules and energy storage system Eligible for a 30% tax credit under the IRA,” confirms Cody Melamed, another regional sales manager for Panasonic’s solar and storage division.
Installers have a huge opportunity when motivated by an IRA. The right partner can help them make the most of this opportunity.
Learn more about how Panasonic can act as a trusted partner Help you take advantage of your IRA and grow your business.