St. Cloud 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%! St. Cloud 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 St. Cloud 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 St. Cloud 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, St. Cloud 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 St. Cloud 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 me for other promotable

energy-saving ideas—as well as for any questions dealing with other St. Cloud real estate matters.

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Multiple Office Locations To Serve YOU!

Saint Cloud 320-259-4554

Princeton 320-983-3555

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Minneapolis 763-565-2000

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Litchfield 320-298-1140

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