The 2024 Election, the Inflation Reduction Act, and Renewable Energy Tax Credits

As the 2024 election approaches, many businesses and homeowners considering solar and professionals in the solar industry wonder what the election outcome might mean for the Inflation Reduction Act (IRA) and the future of solar tax credits. After all, across the board, these policies and incentives have been game changers in the rate of solar adoption for both residential and commercial entities.

The short answer is that no one can truly know the answer; however, as a New York State leader in clean energy and solar policy expert, we want to share what we do know and provide assurance and actionable insights for those considering a transition to solar.

The maturation of the renewable energy industry

The solar industry has seen a huge boom since the signing of the nation’s most historic climate bill—the Inflation Reduction Act. The industry is stable. It’s matured. It’s out of its infancy stage of early adopters. Infrastructure is in place. Domestic production has skyrocketed. And education abounds.

Across the board, the progress and impact we’ve seen has been profound:

Solar for Businesses

The landmark legislation has been a game-changer for business owners considering solar energy, offering substantial tax breaks and subsidies to support clean energy investments. These incentives have led to a surge in private investments and job creation, particularly in Republican-leaning states.

Solar for Homeowners

For homeowners exploring solar, the current tax credits under the IRA and state-led incentives like the 25% New York State tax credit and the NYSERDA NY-Sun grant have made solar more affordable than ever. These credits and grants reduce the upfront cost and make the long-term savings on energy bills incredibly attractive.

Solar Industry

The IRA has been a major boon for those working in the solar industry, driving unprecedented growth in domestic solar manufacturing and installation projects. According to NYSERDA, clean energy jobs in New York State grew by 8.4% from 2020 to 2022, outpacing economy-wide employment growth.

The Inflation Reduction Act and the 2024 election

Regarding policy and the 2024 election, the Inflation Reduction Act and clean energy policy have been a hot topic; however, wind and electric vehicles have borne the brunt of the criticism. When it comes to solar development, there is a more bipartisan appeal for the benefits it has produced:

According to research from Fidelity, traditionally Republican states accounted for 58% of the projects announced under the IRA.

According to S&P Global Commodity Insights, Texas is the leading US renewables market and has attracted roughly $75 billion in private sector and federal funding commitments for clean energy and transportation projects.

77% of Republicans view wind and solar as favorable, according to Pew Research.

There is also nearly unanimous agreement that the IRA is simply too big to roll back. As Matt Breidert, senior portfolio manager at renewable energy investment firm Ecofin, commented in Solar Power World’s IRA Outlook, “It would take a substantial or definitive [Republican] victory with margin to effectuate a meaningful change in the IRA. In the absence of a sweep of the House, the Senate, and the presidency, it will be difficult to materially change the IRA.”

Solar Tax Credits and the 2024 Election

The biggest question on everyone’s mind right now as they consider whether or not to start their solar journey is, “Are solar tax credits going away?” And the answer is no—at least not for 2025.

No matter what happens with the 2024 election, any business or homeowner that goes solar between now and December 31, 2025, can take advantage of the current tax credit incentives, which are historically strong:

30% Federal Investment Tax Credit (ITC): This tax credit applies to businesses and homeowners who go solar and includes battery storage.

- Inflation Reduction Act Residential
- Inflation Reduction Act Commercial

The NYSERDA NY-SUN Grant: This New York State grant program offers $.20/watt for residential solar projects and $.25/watt for commercial solar projects.
- For our average 2024 commercial solar installation (~200kW), this reduces the cost of going solar by about $50,000.
- For our average 2024 residential solar installation (~11kW), this reduces the cost of going solar by about $2,000.
- This grant program is time-sensitive, though, regardless of the presidential election results. Once it’s fully claimed, there is no guarantee of another block.

25% New York State Tax Credit: This tax credit applies to homeowners who go solar and is stackable with the Federal ITC.

New York State's Climate Goals are Steadfast

New York State is pro-solar, and the Presidential Election won’t affect its aggressive climate goals. No matter who holds the POTUS title, New York State has always stepped up to fill the void by taking climate action and securing the viability of switching to clean energy.

So, while administration changes may have some trickle-down impacts, we know that the renewable energy industry and homeowners and businesses looking to go green will always have New York State’s support.

Renewable Industry Advocates

We’ve got some incredibly powerful and influential organizations that will continue backing and doing all they can to support the growth of renewable energy.

Three such organizations include:

NYSERDA: The New York State Energy Research and Development Authority (NYSERDA) has been working to advance clean energy solutions in New York State since 1975. As a public benefit corporation, NYSERDA offers objective information and analysis, innovative programs, technical expertise, and support to help New Yorkers increase energy efficiency, save money, and reduce reliance on fossil fuels.

NYSEIA: The New York Solar Energy Industries Association (NYSEIA) advocates for the sustainable growth of solar energy across New York State. NYSEIA gives solar businesses a coordinated voice in the policy and regulatory proceedings that influence the growth of the New York solar market. GreenSpark CEO Kevin Schulte is a proud board member who actively works to affect clean energy policy and will continue to do so.
AMICUS: GreenSpark Solar CEO Kevin Schulte is on the Board of Directors of the Amicus Solar Cooperative and heads the Policy Committee. This organization supports over 80 solar companies across the US and Canada. Through it, GreenSpark negotiates industry-best pricing on top-quality solar equipment, shares resources, and supports one another as our industry evolves. No matter the election outcome, Amicus will continue to support and guide our members and, in turn, our customers.

2024 Election and Renewable Energy: The Bottom Line

There is always the potential for policy change (election or no election). What we are sure about is that there are incredible incentives on the table right now that will be available at least through 2025, which homeowners and businesses can secure by getting on the books before year-end.

Though the outcome of the election and its long-term impact on policies and incentives are uncertain, we’re encouraged by the fact that solar is now widely adopted, there is bipartisan support, and our industry has made tremendous strides over the last twenty years to withstand another four and beyond. So, whatever the result of the 2024 election, solar and GreenSpark are not going anywhere.

Attend our webinar for more insights on this topic:

As the election approaches, staying informed and prepared for potential shifts in policy will be key to navigating the future of solar energy in the US. As an organization that’s part of policy development and education, we are hosting an informational webinar on October 29 from 11:30 AM – 12:00 PM, where GreenSpark CEO and policy expert Kevin Schulte will share actionable insights for both homeowners and businesses exploring solar.

Learn more and register at the link below.