What is the Inflation Reduction Act (IRA)?
In 2022, the U.S. government passed one of the most impactful pieces of legislation in recent history—the Inflation Reduction Act (IRA). While its name might suggest a focus solely on combating inflation, this sweeping bill does much more. For homeowners and businesses, it represents a massive opportunity to invest in clean energy, cut utility bills, and take advantage of generous federal incentives for going solar.
At The Light Group USA, we’re dedicated to helping families and businesses across Texas, California, and Oklahoma understand what the IRA means for their energy future—and how to take full advantage of the benefits available.
Let’s break down what the Inflation Reduction Act is, how it works, and what it could mean for your journey toward energy independence.
What Is the Inflation Reduction Act (IRA)?
The Inflation Reduction Act is a landmark federal law passed in August 2022 that aims to reduce inflation, lower the federal deficit, and make healthcare and clean energy more affordable. One of the IRA’s biggest focus areas is climate and energy policy—with nearly $369 billion allocated to clean energy incentives over the next decade.
It includes tax credits, rebates, and funding opportunities to support:
Electric vehicle adoption
Job creation in the renewable energy sector
This bill has become a game changer for homeowners and businesses thinking about solar power.
How the IRA Helps You Go Solar
The biggest highlight of the IRA for many Americans is the Residential Clean Energy Credit. This federal tax credit allows you to deduct 30% of the total cost of a solar system from your federal taxes—covering labor, equipment, and even battery storage.
At The Light Group USA, we’ve seen firsthand how this credit significantly lowers the upfront cost of residential solar panel installation, making it much more accessible to families who once thought solar was out of reach.
For commercial clients, the IRA provides enhanced credits through the Investment Tax Credit (ITC), which also covers up to 30% of the cost of a commercial solar panel installation. Additional bonuses are available for projects located in low-income areas or that meet certain labor and domestic content requirements.
Why Now Is the Time to Act
The 30% credit is currently available through 2032—but it won’t last forever. After that, the percentage drops, making the next few years a prime window to invest in solar.
But the IRA doesn’t just incentivize solar installation—it also encourages homeowners to think holistically about their energy usage. That’s why many customers are pairing solar with residential energy efficiency upgrades, like improving insulation, replacing inefficient HVAC systems, or installing smart thermostats.
Not only do these changes reduce your overall power consumption, but they also help you get the most out of your solar system.
Battery Storage is Now Covered Too
Before the IRA, solar tax credits only applied if your battery storage system was connected to a solar array. Now, the law allows standalone storage systems to qualify.
This means whether you’re upgrading an existing system or simply want backup power for grid outages, you can now receive a 30% credit on residential battery storage installations—even if you don’t add new panels.
At The Light Group USA, we’ve helped many homeowners across storm-prone regions install storage solutions that keep the lights on when the grid goes down.
Maintenance and Repairs May Still Be Needed
While the IRA provides great incentives for new systems, existing solar users shouldn’t be left behind. As part of our ongoing commitment to clients, we offer expert solar repair and maintenance services to ensure your system runs efficiently year-round.
Even with the latest technology, natural wear and tear or storm damage can affect performance. That’s why it’s essential to work with a solar company that not only installs systems—but maintains them too.
Thinking About a Roof Replacement?
If your roof is nearing the end of its life or you’re planning to remodel, the timing couldn’t be better to combine roofing upgrades with solar.
We offer safe, expert removal and reinstallation of solar panels for those replacing their roofs or relocating their system. Doing both together could also maximize your tax credit eligibility—depending on how your project is structured.
At The Light Group USA, we make the process seamless, so your investment is protected and reinstalled to last for decades.
What About Energy Efficiency?
The IRA goes beyond solar and batteries—it also offers credits for energy-efficient home improvements, including doors, windows, insulation, and appliances. Combining solar with residential energy efficiency upgrades not only reduces your power bill but can stack multiple tax credits under the same legislation.
Many homeowners we serve are surprised at how small changes—like sealing air leaks or upgrading lighting—can lead to big savings over time.
How to Get Started
If you're wondering how to navigate the IRA’s incentives and figure out what applies to your situation, you’re not alone. That’s why The Light Group USA offers personalized consultations that include:
A free solar savings analysis
Roof and energy usage evaluation
Available federal, state, and utility rebates
Battery and energy efficiency recommendations
Whether you’re ready for a full residential solar install, exploring commercial solar solutions, or just want to ask questions—our experts are here to guide you every step of the way.
Let the IRA Work for You
The Inflation Reduction Act is more than legislation—it’s a once-in-a-generation opportunity to transform how we power our homes and businesses. With long-term tax incentives, increased affordability, and cleaner technology, there’s never been a better time to make the switch.
At The Light Group USA, we don’t just install panels—we create custom, future-ready energy solutions designed around your needs.
Let us help you turn government incentives into real, lasting savings.
