How the Inflation Reduction Act Impacts Texas Renewables

Nov 11, 2022 | Industry Happenings, Renewable Energy

 

This year, President Biden signed the Inflation Reduction Act, a massive piece of legislation that spreads $369 billion across climate initiatives and clean energy. It’s already been signed into law, so we can expect to start seeing the benefits of it moving forward. Here’s how it will impact renewable energy across Texas.

 

Energy Will Cost Less

Is your energy bill higher than you’d like? Don’t worry about it anymore — the Inflation Reduction Act offers rebates of up to 100 percent to install new energy-efficient appliances. There’s also rebates for upgrading your home to more energy-efficient options, like sealing windows or adding insulation. You’ll also get tax credits for things like solar panels, battery storage systems, and community solar projects. Plus, with grants for both state and local government, Texans stand to save an annual average of $179 on their utility bills.

 

More Jobs Will Be Available

If you’ve ever wanted to work in renewable energy, now’s your chance. The Inflation Reduction Act’s tax credits will allow for large-scale expansion of renewable energy projects and businesses. That means there’s going to be many more jobs in the industry waiting for you.

 

Technology Will Get Better

Thanks to this Inflation Reduction Act’s upcoming Advanced Industrial Facilities Deployment Program, the United States — and Texas, one of the few states to heavily rely on renewable energy — will see new opportunities for clean energy, and the technology used to transport it is expected to get an upgrade.

 

Small Businesses Can Get Tax Credits

If you own a small business, you can look forward to tax credits for energy efficiency. For those that own a commercial building, you’ll be able to access up to $5 per square foot when you add energy-efficient upgrades. There’s also a 30 percent tax credit in the Act to help small businesses buy clean-energy trucks and vans, as well as for installing solar power.

 

Electric Vehicles Will Be More Accessible

Texas is already working on building out electric vehicle charging stations throughout the state. With the Inflation Reduction Act, it’ll be even easier to get an electric vehicle to use at those stations. The Act provides up-front discounts for purchasing such a vehicle. For new ones, you can get up to $7,500 off, and for used ones, you can get up to $4,000 off. Wouldn’t it be nice not to have to pay for gas for a change?

 

Electric Cooperatives Can Get Tax Credits

Thanks to Texas’s deregulated power market, you may be using an electric cooperative for your home’s electricity — 2.5 million electric customers do! For the first time, thanks to the Inflation Reduction Act, those cooperatives will be on the receiving end of direct-pay clean energy tax credits. That means a lower bill for you. Plus, the Act puts sincere investments into helping rural energy cooperatives boost their available service, including its reliability.

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