How the Inflation Reduction Act Favors Homeowners

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How the Inflation Reduction Act Favors Homeowners
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Because the IRA incentivizes upgrades mostly used by homeowners, energy-efficient homes will pay less than their share for grid maintenance

Though renters could take advantage of some of these tax credits and rebates, they are practically more accessible to homeowners. An IRS provision for the tax credits, for example, states that the homes being upgraded have to beby the taxpayer, meaning a landlord couldn’t install solar panels and then get a tax credit for those panels if they do not live in the residence.

What’s worse, as homeowners install solar panels and make their homes more energy-efficient, renters and lower-income households will have to bear more of the brunt of paying to maintain the grid—which means as solar homeowners’ bills get lower, everyone else’s will get higher. This is because of the way utilities are billed in most of America.

This is already happening to some degree. Mark Jacobson, a Stanford professor who built a new home in Santa Clara County, California, told me last year that he hadn’t paid an electric bill in five years thanks to his use of renewable energy. Meanwhile,“Lower-income households are going to be living in less energy-efficient homes, using less energy-efficient appliances, and also not having their own sources of energy generation,” Knittel says.

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