Tax Credits, Heatwaves Light Up Interest In Solar Demand

It may not be surprising, but the demand for solar panels is increasing. According to a CNBC report, solar installations could triple over the next five years, thanks to tax credits stemming from the Inflation Control Act, but that's not the only thing consumers are considering upgrading.

After a few days of heat waves in California, a Baker Electric Home Energy representative told NBC 7 that more and more potential customers are calling, intrigued by solar power and whether it can save them money.

As the heat rises across the state, many people are getting tired of their flexible alerts and utility bills.

"I think people have a kind of 'this is it' mentality and they get an August bill in September when it's really hot and that will lead to a 'it's now' mentality," said Steve Brook of Baker Electric. Steve Brooke Domestic power.

Higher energy bills could encourage more people to switch to solar power, and the Cut Inflation Act could help with a 30% tax credit on their installations, Brooke said. This is a loan that will be paid until the end of 2032.

“Let's say your tax credit for a solar installation is $8,000. You have to prove that you'll pay $8,000 in federal income tax when it comes out next year in 2023, because that's when it comes out,” Brook said.

Nicholas Koury and his wife recently took advantage of it. And for them it's not just savings, it's about using 100% clean energy,

"We try to think ahead so that we can be completely sustainable if something happens," Koury said.

They also save money.

"We can see all the electricity we put into the grid from our solar panels, which is great, and how much we use, which is very little compared to the amount of electricity we generate," Koury said.

While there is a lot of interest in installing solar panels, Brooke says there is much more interest in home batteries.

"What also protects you from the very high rates between 4pm and 9pm, so keep the house closed during those times and avoid those high rates," says Brooke.

This means using the device or keeping the light on until the battery has enough power to power it.

"I see our base load every day is 0.5 kW, so we turn on the AC and it blows about 2 kW, so it's about 2.5, 2.4, so about 75% of our bill. Energy or consumption, I have to say, so it's a big difference, Koury said.