By Christy Roth, director, offer management, software, Schneider Electric
With the introduction of the Inflation Reduction Act (IRA), the U.S. has passed a critical milestone in the fight against climate change. The massive climate policy will incentivize Americans to purchase clean technology, such as electric vehicles (EVs) and solar panels, by making them more affordable through tax credits. Beyond that, this new legislation encourages saving energy to create greener homes, helps build stronger supply chains and could even be a steppingstone to lower health care costs thanks to cleaner air. The bill is expected to help the U.S. decrease greenhouse gas emissions by 40% by 2030 and it’s already making notable impacts on the solar and energy industries.
Supporting the green home movement
With the IRA, homeowners can subtract the cost of installing solar heating, electricity management technology and other green home products from their federal taxes. The 30% solar tax credit, which will last for a decade, is among a number of corresponding incentives, like credits for high-efficiency appliances and EVs.
Thanks to these incentives, we can expect a jump in the popularity of sustainable solutions as consumers invest in technology to cut their emissions. An example of this could include increased investment in home energy management systems and energy monitoring systems that not only help consumers understand and take control of their energy usage but also allows them to save more money over time.
Benefits of home energy management tools
In a modern home, the best smart energy panels can provide homeowners with unprecedented energy monitoring, control and power resiliency. Further, by easily integrating solar, battery and other forms of power, these panels can become the hub for energy management to drive sustainability and efficiency, which translate to savings and a reduced carbon footprint for the homeowner.
Older homes can especially benefit by upgrading to a smart energy panel. Homes built 50 or more years ago often cannot accommodate the growing electrical demand brought on by solar and EVs. Adding a smart panel with energy management capabilities allows homeowners to prioritize demand by shedding lower priority loads or delaying loads, like EV charging, until times when demand is reduced to charge that vehicle.
Combined with the incentives stemming from the IRA, energy management tools have the potential of maximizing the payback for consumers.
Maximize savings and shorten the payback period with energy management tools
The average U.S. household spends $2,060 a year on home utility bills, so giving homeowners the ability to see which devices are using the most energy can make a significant difference in a household’s energy costs and environmental impact. Using a smart energy panel, homeowners can turn off appliances and devices remotely to reduce and monitor energy use in real time from their phone to make informed changes to their energy consumption, helping them to reduce their consumption and slash bills.
The IRA will bolster the compounding popularity of sustainable homes as consumers invest in smart-home technology to take control of their energy use and lower their environmental impact. By reducing the upfront costs of smart, energy efficient home technology, the legislation puts electrification and digitization upgrades within reach for more Americans, which will enable them to experience the long-term, maximized savings of these renovations.
Christy Roth is the director of offer management for software and devices of Schneider Electric’s Final Distribution Business. Her goals are to drive awareness of home energy consumption, support product development to grow Final Distribution business and disrupt the industry by challenging the status quo. Christy brings software and integration experience to Schneider Electric from her previous work in the Security Industry. Throughout her 20-year career at multiple Fortune 500 companies, Christy has focused on providing integrated solutions with creativity to address complex customer issues.
Mark Leidlein says
I’d like to hear more about smart panels. I wasn’t aware of them. Sound like a great idea.