Last Week’s Event Could Impact Your Utility Costs

Houston utility bills are headed upward—with nobody expecting them to head in any other direction. Last week, the Bureau of Labor Statistics reported that their Energy Index increased 32.9% for the year ending last month—and that was the good news, since June’s 12-month increase had been 41.6%! Houston utility bills didn’t need to match those pain-producing national averages for the writing on the wall to be evident: household utility bills are bound to become big news—with some predictable real estate repercussions.
There are also actions Houston homeowners can take—most of which are well-publicized (and common sense, anyway). But last Tuesday, an event took place that could rate refiguring the cost-benefit analysis in one energy-consumption area that affects most Houston homeowners.
The signing of the controversial Inflation Reduction Act made meaningful changes to the IRS’s solar tax credit. That provision was slated to gradually phase down from the current 26% to a 22% tax credit next year, but IRA provisions reversed that. The credit will now be increased to 30%.
The new provisions—which also apply to battery storage equipment—will also be extended to remain in effect for the next ten years.
As an example, Houston homeowners who decide to order $25,000 rooftop solar arrays for delivery in 2023 would now receive a $7,500 tax credit instead of $5,500. As always, homeowners should consult their professional tax advisor to confirm details and applicability. The amount of the impact that solar power generation will have on any given Houston home’s electric bill is an individual matter—but since supply and installation issues are bound to result in scheduling delays, getting an order in the works is probably a good idea.
Especially for homeowners who plan to ultimately put their home on the market, it’s becoming increasingly important to be able to demonstrate the property’s economic utility expense profile. It’s not unusual for potential buyers to ask to see utility bills covering the past couple of years—and you can bet they will compare those costs with other properties. You can prevent a last-minute scramble to assemble those bills by recording them regularly. And if energy consumption shows a demonstrable drop with the adoption of solar technology, that should be an upgrade with broad appeal. Call us for other promotable energy-saving ideas—as well as for any questions dealing with other Houston real estate matters. Rinnovare Realty, LLC at (832) 445-4957 or visit us at www.rinnovarerealty.com .