Inflation Reduction Act boosts Madison solar industry, delivers ... - WKOW
Inflation Reduction Act boosts Madison solar industry, delivers mixed climate results | News | wkow.com
Former WKOW anchor John Beard and his wife dreamed of putting solar panels on their Madison home for years.
MADISON (WKOW) -- One year after becoming law, the Inflation Reduction Act (IRA) is boosting the Madison home solar industry while at the same time delivering mixed results on climate change.
Former WKOW Anchor John Beard and his wife had dreamed of putting solar panels on their west side Madison home for years. They wanted to do right by the environment.
"[In] the early days, we were like, 'Wouldn't this be nice? Is it even financially feasible for us?'" Beard said before reflecting on how other financial realities put the solar panel dream out of reach. "We have two kids to put through college."
Then congress passed and President Joe Biden signed the bipartisan IRA into law.
The lengthy law included a host of new regulations, programs, and funding allocations. A tax incentive for home solar panels installs has perhaps had one of the more profound and direct impacts on the Madison area.
The credit allowed Beard and his wife to finally afford their solar panels.
"The tax credit makes it more palatable to spend the money up front," he said. "And it's going to decrease the payback time significantly."
On Wednesday, a crew from Drews Solar arrived to put the panels into place.
"When a homeowner puts solar on their roof, they typically offset 90% to 100% of their annual electricity use with their rooftop solar array," said Maria Drews, co-owner of Drews Solar. "So they're really switching from fossil fuels to 100% renewable energy."
Some progressives have touted the IRA as the most significant step the US has taken in fighting climate change.
A report from Bank of America says that the act has contributed to 270 new clean energy projects, 86,000 jobs and spurred $132 billion dollars in additional investments.
However, the International Energy Agency has warned that the world cannot develop any more fossil fuel deposits if it is to reach net zero emissions by 2050.
The IRA included huge new leases for oil and gas projects.
But for Beard and his wife, its enough just to know that they have helped take one tiny step toward a brighter future.
The Inflation Reduction Act is helping small Madison businesses with solar panel tax incentives.
For Drews Solar, the IRA has been a boon. All of their residential customers take advantage of the tax credit to help offset the cost of the installation and reduce the amount of time before the energy savings pay for the project.
"I think without the federal tax credit, our business would, it may not exist," Drews said. "It's a huge game changer how much more affordable it makes solar for homeowners."
Despite being named the Inflation Reduction Act, the law's primary impact has been on the energy industry in helping transition the country to a greener future.
Inflation has plagued the entire world over the last several years. While inflation has dropped significantly since the law was passed, one new law in one country likely had little effect on the global economy.
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