Give us a call today to learn more from our experts and how this may potentially be a great opportunity for your solar power system. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. ICC: Illinois Commerce Commission (see 220 ILCS 5); the State Agency charged with regulating public utilities in Illinois, as well as approving aspects of the Adjustable Block Program. 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. For homeowners interested in solar at home but unsure about the upfront cost, check out Illinoiss Solar for All program. Solar panels harness the energy from the sun and convert it into electricity. How does the Illinois SREC program work? Renewable Energy Credit (REC) is a tradable, environmental asset that Approved Vendors often work with Designees to manage various portions of solar system development. This includes installers, marketing firms, lead generators, and sales organizations. If you are not a robot then please try again. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. All utility companies in Illinois are required to participate, including Ameren and ComEd. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. You dont need to apply for anything or file any paperwork, and the savings are massive. How do solar incentives affect the cost of solar panels in Illinois? Municipal & County Resources Please enable scripts and reload this page. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. Additionally, the Illinois Shines Program has been a bit rocky in the past. Please note this is an incentive which is subject to tax. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. If you answer yes, the software will automatically direct you to fill in the required information. As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. Dont be. Learn More about the IPA's implementation activities under CEJA. listed below: Carbon Solutions Group or SRECTrade. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. That incentive is a dollar-for-dollar reduction in the income tax liability that a person or company claiming the credit would otherwise pay the federal government. In Illinois, net metering customers may be eligible for a Smart Inverter Rebate if they install and use an approved Smart Inverter as part of their solar energy system. Which Tax Incentives Are The Best In Illinois? Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. In the past, the Illinois Power Authority (IPA) bought SRECs in procurement rounds. Homeowners would typically sell their SRECs through an aggregator who acts as a broker between property owners and the state. Starting on 9/1/22, new SREC applications are now accepted. Commonwealth Edison offers the top utility net metering program in Illinois. Want to find the best deal on solar in all of Illinois? Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. In other words, every time a MWh is produced by a solar array, another SREC comes into existence. Homeowners Take control of your power bill, become more energy independent. A s an example, if someone installs an 8kw sized solar system that produces 10,000 kWh of power annually, in Illinois, that customer would receive around $12,000. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Visit energyequity.illinois.gov to learn more. Between the 30% federal tax credit and the SREC incentive, up to 50 to 60% of your solar system or more could be paid for from these two incentives alone. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. The State operates on a fiscal year basis ending on June 30 th of each year. 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. You can answer some questions yourself, while others can be answered by your installer or sales agent. More information on both Distributed Generation (rooftop or ground mounted solar on your property) or Community Solar can be found in the brochures below: Click here to access the Programs Distributed Generation Brochure. The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. A system must be energized within 12 months (18 months for community solar projects) after this contract is approved. Does Illinois have a solar sales tax exemption? The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. Well list these incentives below and provide a brief explanation as to how they work. In 2023, the ITC will drop to 22%. With the passing of the Climate and Equitable Jobs Act, however, this 5% cap has been removed. For the average Illinois resident, this solar program yields around $12,600 over the life of their system! Policy Webinars, Solar Tour Net energy metering is the second-best perk available to Illinois homeowners, in our opinion. represents the clean attributes of solar electricity. Read ourprivacy policy. Solar Ambassadors RECs are a System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. in the Illinois Shines program. Illinois has two main solar policies that will have the biggest financial impact on your investment: 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. IPA: Illinois Power Agency; the State Agency charged with administering the procurement of renewable energy resources to meet Illinois renewable energy portfolio standard, in addition to procuring electric power supply for eligible retail customers of electric utilities and other responsibilities. An SREC is a REC that specifically comes from a solar system. This may earn customers a rebate from the utility. Homeowners get one SREC for. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. 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. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. Phone. Casey is an EnergySage writer covering solar, community solar, and sustainability. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Office. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. The Illinois SREC plus Federal Tax Credit makes solar very appealing. The good news is that Illinois is home to quite a few incentive programs that make PV equipment more affordable and maximize your long-term solar savings. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). Residential Solar Incentives (Large/5+ unit buildings) ($/REC) Enrolling in this program is far more complicated than the other incentives discussed above. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. Net metering measures the electricity your PV system produces and credits you for it on your electric bill. Of that 25 percent, six percent must come from solar. . For a personalized assessment of the credits and rebates you may qualify for, launch our Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. REC Procurements These credits work similarly to the federal solar tax credit. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. Ethics Reporting Associated with Communications with the IPA. What Illinois Residents Need To Know About SRECs? For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. Energy Solutions has been designated the Program Administrator. Please note this is an incentive which is subject to tax. This program is set to open up January, 30th 2019. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. Newsletter Sign Up, News & Announcements When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Is IL proposing increasing incentives for rooftop solar in the next 24 months? Click here to access the Programs Community Solar Brochure. You may participate as a subscriber to a community solar projecta large, centralized solar project for which you subscribe to a share of its output. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. The EnergySage Solar Calculator estimates the net 20-year savings of a 5 kW system installed in McLean County, IL to be anywhere from $21,564 to $29,175. Usually, you can expect to receive your payment within a year of your systems completion. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless youre a tax-exempt entity, in which case you might be eligible for a direct payment). Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. 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. This means the price of SRECs declines as more solar energy systems are installed. Policy Blog through their installer or contact the two preferred national companies In addition to FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. All of CSG's ABP customers will be receiving the following documents in . If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. If youre looking for a quote contact us today by phone or via our contact us page! Speaking of Solar Blog, Homeowner Resources Illinois Solar Renewable Energy Credits help the state meet Renewable Portfolio Standards (RPS), which is a regulatory mandate that sets goals for generating a percentage of Illinois overall electricity from renewable energy. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? A technical error has occurred. Also known as a photovoltaic community renewable generation project.. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. The net energy metering program in Illinois is outstanding, even compared to similar programs in other states. 2023 Illinois Shines. Massachssets:Solar Systems under 25 KWs can collect SRECs for 10 years. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Thats because the summer months are usually the highest production months for home solar. The program could get less beneficial in the future as it is in some other states, but right now, this is our pick for the second most crucial benefit program to take advantage of in Illinois. ISEA recommends system owners work For the average residential system, this comes out to more than $10,000 in additional savings. 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. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. Youll see far less personal benefit than if you purchased or financed panels. Otherwise, youre paying to produce energy for which the utility wont compensate you. The credit was bumped up to $7,500 for some makes and models. But, most people wont qualify unless they already have solar installation experience. Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC New customers should review the ABP Program Brochure for general program information. This guarantees clean energy savings. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. Part I: The initial application into the program which contains detailed information on the system and its location. Illinois Shines is the brand name for the Adjustable Block Programa state-administered incentive program supporting the development of new solar energy generation in Illinois. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. Wall-Mounted Solar Awnings & Solar Patios, Interconnection & Netmetering Considerations, Small Distributed Generation (DG) from 0 to 25 kW (AC), Large Distributed Generation (DG) from >25 kW up to 2,000 kW (AC). With these incentives in the works, its a great time to start evaluating your solar options. owners for the countless benefits to Illinois. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Dont forget about federal solar incentives! This field is for validation purposes and should be left unchanged. RPS Timeline See solar prices from qualified, local companies. Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. All rights reserved. You may be trying to access this site from a secured browser on the server. If you have more questions or would like to see a quote for your home, farm or facility, our experts will be happy to discuss further! If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. Importantly, the pricing of your SRECs is fixed, and when you receive the incentive depends on the size of your solar panel system; if youre installing a system with an inverter size of less than 10 kW, you receive your SREC incentive as an upfront lump-sum payment. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. Captcha validation failed. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. ENERGYSAGE is a registered trademark and the EnergySage logo is a trademark of EnergySage, Inc. Other trademarks are the property of either EnergySage, Inc. or our licensors and are used with permission. Enter your zip code to see solar quotes near you. Is Illinois reducing incentives for rooftop solar in the next 24 months? Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. Having trouble deciding? Individual Memberships If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. Best of all, the program takes no time to enroll in, as your installer will set up automatic credit sales for you. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. These Incentives Are Limited! In some cases, ComEd customers actually purchase energy from another supplier. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. In Illinois you as a solar owner contract with an Approved Vendor (through your installer) to sell all the SRECs your system is expected to generate over the first 15 years. 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. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. All Rights Reserved. The best of EcoWatch right in your inbox. Unfortunately, Illinois doesnt waive sales tax on PV equipment. The quotes would include current incentives available in your area. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. Ameren Illinois also offers net metering to residential customers. Ethics Reporting Associated with Communications with the IPA provides more information. The current block rate for systems under 25kW is $75.29, but it won't be for long! Net energy metering makes it far more likely for residents to offset their utility bills entirely, helping to maximize their energy savings and reduce the amount of time it takes to pay off their equipment.