The Inflation Reduction Act of 2022 (IRA), which had already passed the Senate on August 9, was finally approved by the House on August 12, 2022, by a vote of 220-189. After the Build Back Better proposal was abandoned in late 2021, discussions between Senate Majority Leader Chuck Schumer and West Virginia Senator Joe Manchin resulted in the stunning $700 billion measure.

The IRA’s objective is to reduce the national deficit, which will, therefore, lower inflation, as the bill’s name implies. The Act contains proposals to expand the Affordable Care Act, change prescription medication pricing, and invest in American manufacturing. However, the investment in the fight against climate change is also historic.

The Inflation Reduction Act (IRA), which will invest about $369 billion in energy security and climate change, is expected to reduce annual greenhouse gas emissions by 1 billion metric tons by 2030. Across the board, clean energy industries are receiving significant funding, but solar energy is one of the biggest beneficiaries.

The COVID-19 pandemic stalled installations, and ongoing supply chain problems have disrupted schedules and raised prices overall. This is the first hope for the country’s solar industry has let out in a while. The IRA’s generous tax credits for manufacturers and homeowners are the catalyst for things to start improving finally.

The IRA is expected to cut greenhouse gas emissions at 42% from 2005 levels by 2030, narrowly missing the Biden Administration’s target for emissions reductions. However, as individual states work to achieve their climate targets, the Administration’s threshold can still be satisfied.

The Inflation Reduction Act is necessary to open the opportunity to a cleaner, greener, and more affordable future. We’re convinced that homeowners who invest in solar panels for their houses will continue to benefit from the sun shining because solar is one of the significant performers in this industry.

• Uncategorized