“Where (and How) Americans Are Taking Advantage of Clean Energy Tax Credits" Article Reflection No. 106 (8/11/2024)

Article: “Where (and How) Americans Are Taking Advantage of Clean Energy Tax Credits”

Reflection: 

In the article “Where (and How) Americans Are Taking Advantage of Clean Energy Tax Credits,” journalist Nadja Popovich discusses clean energy tax credits, which can be used to install greener energy sources such as wind turbines and solar panels. With its popularity in the Southwest US, these credit demands have exceeded projections, according to the article’s quote by Treasury deputy secretary Wally Adeyemo. The article states that, of the clean energy tax credit options, there was—so far—highest demand for solar panels at 752,300 tax returns claiming the credit with the least popular credit use being 35,850 tax returns claiming the credit. Those who claim these credits tend to be wealthier due to reasons including but not limited to the required upfront payment and how they apply mainly to homeowners instead of renters. As the clean energy tax credits were established as part of the Inflation Reduction Act, the socioeconomic disparity between the credit users may potentially narrow through the funded rebates, according to the article. 

For my family, no matter how much we may want to install solar panels on our roof and no matter how we currently own the house we live in, the cost of solar panels is off the roof—literally. According to MarketWatch, installing an average-sized solar panel costs over $10,000, which is a significant portion of my family’s income already. Yes, tax credits can help and they incentivize. But for people who still can’t afford (ex.) solar panels, even with these benefits or accommodations, how is it truly fair? And given how I live in an expensive city, imagine how stark the socioeconomic disparities would be for families who are struggling to pay their rent. Why is money so often the obstacle for (it seems) most everything?