New Research Finds Inflation Reduction Act Influencing Clean Energy Behavior, But Most Americans Don't Know About It

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06/28/2023 - 09:00 AM

Independent study, commissioned by SunPower, finds 88% of respondents would consider switching to solar but perceived cost to switch holding them back

Nearly 250 million Americans unaware of the $369 billion in federal clean energy benefits and tax credits available in the IRA

RICHMOND, Calif., June 28, 2023 /PRNewswire/ -- With grid energy costs increasing steadily, American consumers are making sacrifices to pay their energy bills and becoming more energy-conscious according to independent research commissioned by SunPower (NASDAQ:SPWR). In the second iteration of its Energy Switch Index, the company surveyed more than 2,000 Americans to better understand consumers' energy preferences and the impact the Inflation Reduction Act (IRA) is making on consumers' transition to clean energy.

Key findings from the SunPower Energy Switch Index 2023 survey include:

Mounting electricity bills giving rise to the energy-conscious consumer
Americans are increasingly worried about paying their energy bills. In fact, one in five fear they eventually won't be able to afford their monthly bill. Nine in 10 surveyed have already tried at least one thing to reduce their electricity bill, and one in 10 say they have delayed other important payments, such as a medical bill, because electricity costs are so high.

America is ready to embrace solar energy,
Today, nearly nine in 10 Americans (88%) say they would consider switching to solar. 78% say they think installing a solar system would lower their monthly energy expenses. This perception is supported by SunPower's own findings that SunPower customers can save an average of $213/month on their electric bills¹.

However, many consumers are shying away from solar adoption because they perceive the cost of making the switch as too high. Nearly two in three Americans that would consider solar don't think they could afford it for their home today.

Consumers seeking government assistance, but don't know about the Inflation Reduction Act
61% of Americans who are considering the switch to solar say they would do so if they received a government incentive – yet remain in the dark about the benefits that are available to them within the IRA. According to the survey, nearly 250 million people² have either never heard of the IRA — the largest climate bill designed to make clean energy more accessible — don't know it offers tax credits for making energy efficient improvements to your home, or dont think they are eligible for it.

Further, the data shows that the communities that could benefit most from the incentives in the IRA – lower-middle income, women, and millennials and Gen Z — are least familiar with its benefits. Only four out of ten Americans who earn less than $50,000 are planning to take advantage of the legislation's benefits in comparison to 57% of their higher-earning peers. While 71% of Gen Z respondents said they plan to buy a home in the next five years, only one in three know about the IRA — a large delta for climate-conscious future homebuyers.

However, Americans that are familiar with the IRA are more likely to believe clean energy solutions are within reach. Those that know about the legislation are 50% more likely to think they can afford solar today and two times as likely as to say they plan to install energy efficiency appliances like induction stoves or heat pumps.

"Americans deserve cleaner, more resilient and more affordable energy. More than 100 million homes could save money today by switching to solar," said Peter Faricy, SunPower CEO. "SunPower is committed to providing the best solar solutions and experience, as well as making renewable energy accessible to all Americans. With the Inflation Reduction Act and financing options that offer low monthly payments, there has never been a better time to make the switch."

"Americans are ready to embrace solar and take the first steps towards a more affordable, more efficient and all-electric future," said Stephen Pantano, Head of Market Transformation at Rewiring America. "At Rewiring America, we are busy building the resources and tools that will help close the gap between awareness and action that this survey reveals. We're glad to collaborate with SunPower to ensure that everyone can take advantage of the Inflation Reduction Act's historic incentives."

To download the full Energy Switch Index 2023, visit www.sunpower.com/ESI.

For more information about available tools and resources to learn more about the IRA including Rewiring America's IRA Savings Calculator to see what incentives homeowners qualify for, visit https://us.sunpower.com/blog/2023/06/22/homeowner-guide-inflation-reduction-act.

Methodology
The SunPower Energy Switch Index surveyed 2,005 nationally representative Americans aged 18+. The surveyed sample was used to provide a real-life representation of the larger U.S. Adults population based on the U.S. Census. The independent survey was conducted by Wired Research online between February 17 and February 27, 2023. The study has a margin of error of +/- 2.2%.

About SunPower
SunPower (NASDAQ:SPWR) is a leading solar, storage and energy services provider in North America. SunPower offers solar + storage solutions designed and warranted by one company that gives customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. For more information, visit www.sunpower.com.

About Wired Research
Wired Research is a leading insights consultancy, partnering with brands big and small. For more information about Wired Research, please visit www.wiredresearch.com.

About Rewiring America
Rewiring America, the leading U.S. nonprofit working to electrify our communities, is building industry partnerships and online tools to help solve the knowledge gap Americans have about the Inflation Reduction Act. We believe in an abundant, flourishing, climate-safe future, and know that, together, we can realize one. For more information, visit www.rewiringamerica.org.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding business plans and cost savings. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, regulatory changes and the availability of economic incentives promoting use of solar energy and fluctuations or declines in the performance of our solar panels and other products and solutions. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

1. Results may not be typical. Savings will vary. Savings calculated from estimated SunPower customer data based on local utility rates on 05/30/2023.
2. The surveyed sample was used to provide a real-life representation of the larger U.S. Adults population based on the U.S. Census.