Visit energyequity.illinois.gov to learn more. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. Its our hope that when the goal is met in 2025, the state sets a new one and maintains the current incentives to help reach it. In Illinois, all applications to the ABP program must be submitted by an approved vendor, meaning you wont work directly with your utility to receive your SREC payments. Illinois has a very favorable net metering program that helps bring down effective energy costs. The kind of credits you get each month for surplus energy depends on the price you pay for energy from ComEd and whether you received the utilitys commercial distributed generation rebate (not currently available for residential arrays). Is Illinois reducing incentives for rooftop solar in the next 24 months? Karsten is an editor and energy specialist focused on environmental, social and cultural development. Is my home or property a good fit for a solar system? Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. In some cases, ComEd customers actually purchase energy from another supplier. Please note this is an incentive which is subject to tax. All Rights Reserved. For example, if you are a homeowner in Illinois with Comed that purchases residential solar, each 1,000 kWh of electricity you produce from your solar panel would be equivalent to one SREC worth $64.56. Visit energyequity.illinois.gov to learn more. Visit energyequity.illinois.gov to learn more. The Illinois SREC plus Federal Tax Credit makes solar very appealing. However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. Instead, approved vendors facilitate the application process and transaction. REC Procurements REC prices are determined through the Adjustable Block Program. Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. For more information, seeenergy.gov. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. If you only have time to file for one credit, we strongly suggest making it this one. Distributed Generation (DG): A system which is located on-site, behind a customers meter, and used primarily to offset a single customers load; it cannot exceed 2,000 kW AC in size. Also known as a photovoltaic community renewable generation project.. In the sections below, well provide responses to some of the most common questions we get asked about solar perks and benefit programs in Illinois. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Be sure to check with your aggregator of choice to confirm their participation. Leigh Matthews, BA Hons, H.Dip. The second 10 years of SRECs is a fixed 35$ Illinois: Illinois is also a fixed amount, however SRECs can differ in price depending on when you go solar. The Plan describes the implementation of: The Adjustable Block Program (for photovoltaic distributed generation and community solar), also known as Illinois Shines, TheIllinois Solar for AllProgram(low-income residential distributed generation and community solar), Competitive procurements (for Renewable Energy Credits from new utility-scale wind, utility-scale photovoltaic, and brownfield photovoltaic projects), Large Customer Self-direct Program (for large electric customers to retire Renewable Energy Credits from new utility-scale wind and solar facilities and receive a bill credit reducing Renewable Portfolio Standard (RPS)-related bill charges). You can answer some questions yourself, while others can be answered by your installer or sales agent. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). This could be your installer, a project developer, a broker, or an aggregator. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. Municipal & County Resources Its offered by the federal government, and it provides a massive credit to your income tax burden in the amount of 30% of your total system value. Community Solar: A solar project which (1) is interconnected to an electric utility, a municipal utility, or a rural electric cooperative, (2) allows subscribers to pay for shares or some other interest in the project, receiving bill credits in exchange; and (3) does not exceed 2,000 kW AC in size. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. Solar Professional Resources Solar is hot in Illinois! This program is undergoing some changes in the summer of 2022, but the basic premise remains the same: home solar producers can earn 1 SREC for every MWh of electricity produced by their systems and can sell these to earn additional income. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. How do solar incentives affect the cost of solar panels in Illinois? SRECs are a great way for businesses and nonprofits to generate savings in Illinois. Given the tax rate in IL of 2.16% and the typical system value of $20,475, this exemption should save you approximately $8,845 in taxes over the life of your equipment.2. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. The Future Energy Jobs Act (FEJA) took effect on June 1, 2017 and is designed to stimulate job creation in clean energy, assist the state in meeting its ambitious RPS goal by 2025, and promote energy efficiency. It guarantees that you are credited for all excess power your system produces that isnt used in your home and is instead sent to the grid. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. Well break down the initial steps below. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. The block groups are divided into four main categories: Small Distributed Generation (DG), Large DG, Traditional Community Solar, Community-Driven Community Solar, and Public Schools. A system must be energized within 12 months (18 months for community solar projects) after this contract is approved. represents the carbon or pollution avoided from the grid. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. From there, each category is further divided by the size of the solar installation; if your installation produces less than 25 kW you fall into the Small DG category, whereas the Large DG, Traditional Community Solar, Community-Driven Community Solar, and Public School categories all range from 25 kW up to 5,000 kW. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. in the Illinois Shines program. Please enable scripts and reload this page. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. Block groups are determined by utility companies and load zones. The IPA is purchasing SRECs under a 15-year contract. The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. What to know about Illinois' SREC program The best states for a home solar energy system aren't always the sunniest; those who benefit the most from installing a solar photovoltaic (PV) system for their home spend a lot of money on electricity and live in a state with good solar programs and incentives. Her work on solar policy has been published in Canada's National Observer. Illinois' SREC incentive: the Adjustable Block Program Under the Adjustable Block Program, also known as Illinois Shines, you can earn one solar renewable energy certificate (SREC) for each megawatt hour (MWh) of electricity your solar system produces over 15 years. Want to know more about the Illinois Solar Renewable Energy Credit Program? Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. In addition to FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. RECs are certificates that are created when a renewable energy generating facility produces energy. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. Copyright 2009-2023 EnergySage, Inc. With the new SREC program, its a bit different the current SREC program lasts for a longer duration, and the price you receive for each SREC is fixed and dependent on your utility company, system size, and how soon you go solar. How does the Illinois SREC program work? What Illinois Residents Need To Know About SRECs? Well also include the average savings afforded by each perk to help you prioritize which to take. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. Call us at (773) 812-3447 for more information on SRECs. are valued for the total energy production from an array and therefore This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. Absolutely! Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. Residential Solar Incentives (Small/14-unit buildings) ($/REC) To encourage Energy Sovereignty, an additional $10 per REC would be added for projects that result in ownership by the customer, such as through an early buyout of a lease or PPA. The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. Its worth mentioning that tax software like HR Block and TurboTax know about this incentive and typically ask you when you go to file if you installed renewable energy equipment. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. The library zone below is used to load resources. This Act included significant changes to the Adjustable Block/Illinois Shines program. Dont be. That means your taxes wont increase just because you convert to solar energy. The state of Illinois has a renewable portfolio standard (RPS) that commits the state to produce 25 percent of its electricity from renewable energy by 2025. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. sales @ mysolidbox.com Still, we love programs like this because it makes renewable energy far more accessible. All credits are automatic, provided you have the right electric meter, and a new one will be provided for free even if you dont have a bidirectional meter. ISEA recommends system owners work Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. In other words, every time a MWh is produced by a solar array, another SREC comes into existence. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. All rights reserved. Register for free to start comparing quotes. Site maintained byEnergy SolutionsAll Rights Reserved. That means that every kilowatt-hour (kWh) you generate and send to the grid will offset one kWh you pull from the grid when your panels fail to produce enough energy for your home like at night or on cloudy days. payments will be made (to clients)pursuant to the rules of the This is because the utility uses either April or October as the annual billing period end. This guarantees clean energy savings. Illinois Solar Industry Data, RPS Legislation The credits you accrue roll over for an entire year, and you can choose from two different billing periods for your credits to get reset to zero annually. Learn more about what a REC is here: https://vimeo.com/113250210. Under the Adjustable Block Program, this system falls into the Small DG category. Assuming you have an average system installed and typical energy bills for the area around $93.98 and your panels generate enough to offset 50% of your bill, this program could save you an average of $11,277 over the first 20 years of the panels lifespan. capacity. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. With one credit earned each month, thats an average of $840 per year your system will earn you. RECs are a The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Click here to access the Programs Community Solar Brochure. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. Welcome to the Illinois Power Agency (IPA) Energy Workforce Equity Portal The portal is an online source designed to help connect clean energy companies with Equity Eligible Persons looking to work in the clean energy sector in Illinois. Its possible that, as the Prairie State approaches or surpasses its RPS goal, the net energy metering credit rate will drop or go away entirely. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. This includes installers, marketing firms, lead generators, and sales organizations. These brokers will pay property owners for their SRECs on a quarterly basis over the course of five years, and sell the SRECs to the IPA during the specified procurement rounds. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? The PUC mandates that all excess energy be credited at the full retail rate, which gives you the best chance of eliminating your utility bills. It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. Taxpayers can claim a Federal Income Tax Credit (FITC) of 30% for qualified expenditures on a solar system that provides electricity to their residence (owned and lived in by the taxpayer). The portal is an online source designed to help connect clean energy companies withEquity Eligible Personslooking to work in the clean energy sector in Illinois. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. listed below: Carbon Solutions Group or SRECTrade. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. To learn about any incentives you may qualify for, launch our