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Many Americans are considering eco-friendly and secure techniques like solar-powered houses and heat pumps due to rising electricity expenses and deteriorating inflation.
Connecticut resident Josh Hurwitz powers his home using solar energy. Josh considered three factors before settling on an environmentally responsible approach. First, he sought to reduce his carbon impact. Second, to conserve money, and third, he needed to continue having electricity whenever his city experienced a blackout. Josh said that although finishing the setup would have been expensive, the savings he would experience after 15 years of paying off it would have made it worthwhile.
“You have to make the money work. You can have the best of intentions, but if the numbers don’t work, it doesn’t make sense to do it,” he said.
Thankfully, the state of Connecticut offers financial incentives to residents who switch to eco-friendly housing. In addition, the Inflation Reduction Act, which encourages eco-friendly dwellings like solar-powered ones, may be implemented and enforced by the federal government with the assistance of eco-friendly infrastructure. By 2024 to 2035, the law is expected to inspire 26% of American houses to adopt green practices. Additionally, the government will pay for 30% of the batteries that will be used to store the energy generated by the solar panels in each home, as well as over 30% of the cost of the system.
“The main thing the law does is give the industry, and consumers, assurance that the tax credits will be there today, tomorrow and for the next ten years. But, unfortunately, rooftop solar is still expensive enough to require some subsidies,” explained Clean Energy States Alliance executive director Warren Leon.
Eco-friendly living would be expensive. Leon clarifies that tax credits could be enough to pay the first expenditure. For instance, Hurwitz constructed his solar power system in 2020 and took advantage of a federal tax credit. In addition, several contractors provide a package where they pay the initial sum and then receive government reimbursement. The owner is responsible for covering installation costs after it is finished. Costs would be high. A long time after installation, though, the investment would start to pay off.
“Will this growth have legs? Absolutely! With utility rates going up, it’s a good time to move if you were thinking about it in the first place,” said Veronica Zhang, the portfolio manager of Van Eck Environmental Sustainability Fund.
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Another eco-friendly ways
Other residences are also considering utilizing a home heat pump to be eco-friendly. Turning eco-friendly would also appeal more to homeowners if government advantages and incentives existed. An air conditioner and conventional furnace system are both replaced with a heat pump, a single piece of equipment. When coupled with solar panels, the technology can cool a house while benefiting the environment. Going green is increasingly widely practiced due to deteriorating inflation and rising energy costs. More than 87% of American homes, according to SaveOnEnergy.com, claim that their energy costs have gone up.
“These incentives are not only saving you money now and in the long run on your utility bills, but they are putting our economy on track to reduce consumption of fossil fuels that contribute to climate change. It’s a win-win,” said the Environmental Law Clinic at Case Western Reserve University School of Law director Miranda Leppla.
Heat pumps are useful, according to the nonprofit Rewriting America, which assists communities in electrifying their houses. The efficiency of eco-friendly heat pumps is three to five times greater than that of conventional furnace systems, and they can adjust to different climates. From $8,000 to $35,000 is how much a heat pump typically costs. Depending on the size of the house and the kind of heat pump, there are several pricing ranges. On the other hand, Rewriting America claimed that by using heat pumps to reduce their carbon footprint, homeowners might save hundreds of dollars annually.
“While there’s an upfront cost, millions of homeowners would save money with a heat pump over the life of the device. You’ll save even more with the federal government covering a chunk of the upfront cost,” said Joshua Skov, a consultant and instructor at the University of Oregon.
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The government giving incentives to eco-friendly houses
According to International Energy Agency head Faith Birol, the US government is putting money into eco-friendly practices. As an illustration, the Inflation Reduction Act raises the subsidies for those who switch to environmentally friendly methods. According to the IEA, more investment is required for the US to meet its climate targets.
“Today, it’s about 1.3 trillion US dollars, and it will go up to about 2 trillion US dollars. And as a result, we are going to see clean energy, electric cars, solar, hydrogen, and nuclear power slowly but surely, replacing fossil fuels. And why do governments do that? Because of climate change, because of the greenness of the issues? Not at all. The main reason here is energy security,” he said in an interview.
“Energy security concerns, climate commitments, industrial policies — the three of them coming together is a very powerful combination,” he added.
“Energy markets and policies have changed due to Russia’s invasion of Ukraine, not just for the time being, but for decades to come. Even with today’s policy settings, the energy world is shifting dramatically before our eyes. Government responses around the world promise to make this a historic and definitive turning point towards a cleaner, more affordable and more secure energy system,” Birol added.
