Jim Windak – MI
- IRA,
- Stories
Solar provides resilience to Michigan homeowners
By: Gabe Hutchison
Solar tax credits are providing a pathway to resilience for homeowners seeking energy independence in the face of severe winter weather and unstable electric grids.
Over the past 10 years, Jim Windak and Dawn Swartz have noticed power outages becoming more frequent in their hometown of Ann Arbor, Michigan—especially during the winter. A desire to reduce their carbon footprint and keep their house running during service interruptions got the couple interested in solar.
The tipping point came during a blackout in the middle of winter. “We had an ice storm and we were without power for something close to a week,” said Jim. “It was getting cold in the house and we thought: No, we can’t. We have to have a backup plan. We can’t do this anymore.”
Not wanting to rely on a generator, a solar system with a battery backup fit the bill. Pairing your solar array with batteries allows you to power your electrical needs even when the utility grid is down. Most solar arrays in the U.S. remain grid-tied because they are less expensive, but for those wanting the security of backup power, federal tax credits can make batteries more affordable.
Thirty percent of the overall cost to install a solar system, including the optional batteries, is eligible for a tax credit, thanks to the Inflation Reduction Act (IRA). This incentive helped the project become a reality. “I ended up getting a rebate on my taxes last year. So that made it more affordable and more doable,” said Jim.
The investment is already paying off. In January 2024 when their power went out, the batteries helped them weather the outage. “It lasted a couple of days and I’m happy to report that the battery got us through those two days just covering essentials, like keeping the refrigerator going, some lights, the Wi-Fi, the sump pump, [and] the blower on the furnace.”
The IRA also offers rebate programs for home efficiency and electrification upgrades. Jim and Dawn benefited from those as well. “[We] had a 40-year-old furnace and air conditioner that were kind of on their last legs, so [we] had them replaced with a heat pump.” They also replaced their old gas range with an electric induction stove.
Having reduced their reliance on natural gas, the couple stood to benefit from a larger solar system. So, they reached out to their installer and doubled the size. “Now [we] have 17 panels on the roof and it’s really kicking out the power.” The addition will be eligible for a 30 percent tax credit.
Jim says the expanded system is generating around 80 percent of their energy needs. “I’m not using energy from the grid, I’m using mostly energy that I’m producing myself, and that’s kind of fun.” By producing more of their own energy and upgrading their aging gas appliances, they now expect to pay back the cost of their system faster than originally expected.
An initial desire to use more renewable energy and decrease their reliance on the grid evolved into a complete shift in how Jim and Dawn consume energy and power their home. The resilience, savings, and sustainability they now enjoy were made possible by the IRA incentives. “That’s why [we] wanted to get all those projects done now, while those federal tax credits are there.”
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