Casey is an EnergySage writer covering solar, community solar, and sustainability. . The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. The Agency reserves the right to add additional categories of market activities as needed. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. How does the Illinois SREC program work? The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Homeowners Take control of your power bill, become more energy independent. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. Your payback time is greatly reduced. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. Residential: RECs are a state incentive, whose value is equal to the solar energy you produce over 15 years times the price set by the Illinois Power Agency for RECs. Solar Ambassador Program updated article on the cost of solar panels, solar renewable energy certificate (SREC), rebates for commercial and industrial (C&I) customers, The Special Assessment for Solar Energy Systems, See the complete list of top solar installers in Illinois. Shouldnt solar be the same? The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. 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). The Illinois Power Agency determines the cost of the block price value. Is Illinois reducing incentives for rooftop solar in the next 24 months? As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. The program is made possible via the REC market in Illinois. If you go solar while theres still capacity for the 2022-2023 program year, your SRECs would sell for $78.51 each and you would earn roughly $7,066 in SREC sales! represents the carbon or pollution avoided from the grid. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. Youll see far less personal benefit than if you purchased or financed panels. The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. But, most people wont qualify unless they already have solar installation experience. The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. REC prices are determined through the Adjustable Block Program. ComEd, one of ILs largest utility companies, provides rebates for commercial and industrial (C&I) customers to help decrease the out-of-pocket costs of installing solar. If you only have time to file for one credit, we strongly suggest making it this one. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. The Illinois SREC plus Federal Tax Credit makes solar very appealing. Massachssets:Solar Systems under 25 KWs can collect SRECs for 10 years. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? ATTENTION! Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. Previously, the incentive transitioned to a new block with a lower price once it reached its set amount of installed solar this resulted in fewer available incentive funds as more people installed solar. At that time, youll be paid a lump sum for all of the credits you accrued. Block groups are determined by utility companies and load zones. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) Still, we love programs like this because it makes renewable energy far more accessible. At first, the credit amount was set to decrease based on the below schedule: In August of 2022, the federal government re-upped the credit amount and pushed back the expiration date of the program. Home / Solar Energy Guide + FAQ / The 4 Biggest Benefits of Going Solar / Solar Rebates & Tax Incentives: What You Need to Know / Illinois Solar Incentives for 2023, Written by Leigh Matthews, BA Hons, H.Dip. 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. That means your taxes wont increase just because you convert to solar energy. You can follow the steps below to ensure you get access to this outstanding benefit program. *Companies intend to be available for all procurement events. The price drop between blocks is 4%. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Learn more about the Illinois Solar Renewable Energy Credits Program. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Community Solar Subscriber: A person who (i) takes delivery service from an electric utility, municipal utility, or rural electric cooperative, and (ii) has a subscription of no less than 200 watts to a community renewable generation project that is located in the utilitys service area. Enrolling in this program is far more complicated than the other incentives discussed above. Otherwise, youre paying to produce energy for which the utility wont compensate you. This incentive can net you several hundred dollars each year, seriously reducing your solar payback period. The value of an SREC is determined by the market subject to supply and . 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. As of the time of writing, each SREC in IL is worth approximately $72. These serve to help the state reach its Renewable Portfolio Standard (RPS) goal of producing 25% of its energy via clean sources by 2026.1. How do solar incentives affect the cost of solar panels in Illinois? If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. 1.877.697.9269. If youre looking for a quote contact us today by phone or via our contact us page! Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. Details from past DG procurement events including winning bid prices are listed on the IPA website. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. How do I go about finding someone to install solar on my roof/property? In other words, every time a MWh is produced by a solar array, another SREC comes into existence. What Illinois Residents Need To Know About SRECs? In addition to the federal and statewide solar perks mentioned above, there are two other local incentives that might be available to you, depending on where you live. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. This Act included significant changes to the Adjustable Block/Illinois Shines program. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. You may be trying to access this site from a secured browser on the server. Ethics Reporting Associated with Communications with the IPA. Solar Renewable Energy Credit (SREC) Residential: REC's are a state incentive, whose value is equal to the solar energy you produce over 15 years times the price set by the Illinois Power Agency for REC's. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. Illinois may not have the year-round sunshine of the Southwest, but it does have a great solar power market because of the available financial incentives. Lastly, we believe the SREC program in IL is a staple of the incentive spread available to you and one that you should definitely take part in. Want to know more about the Illinois Solar Renewable Energy Credit Program? Newsletter Sign Up, News & Announcements RECs are certificates that are created when a renewable energy generating facility produces energy. Illinois Shines: Illinois is one of few states with a Solar Renewable Energy Credit (SREC) program to support the development of solar projects in the state. Even if you arent quite ready to make your solar purchase, these Illinois solar rebates and incentives are sure to make the case for why solar is a smart decision in the Land of Lincoln. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. Ameren Illinois also offers net metering to residential customers. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. Find out how much you can receive when you register through the Illinois Shines Program with Acorn! With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. All Rights Reserved. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. Phone. 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. A system must be energized within 12 months (18 months for community solar projects) after this contract is approved. This is a massive amount of money to put toward your system costs for minimal effort on your part. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. However, we dont expect this to appear in the near future. Learn More. Heres why: Illinois is one of just a few states that pay you to generate clean electricity from solar and wind renewable energy systems. Small projects can work with 3rd party aggregators if they The questions below will affect whether you save money. On May 16, 2022, the IPA announced that it will start accepting new applications to sell SRECs on September 1st, having closed the program in July 2022. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. What are the most efficient solar panels? The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. The Program provides payments in exchange for 15 years of Renewable Energy Credits ("RECs") from a utility contracted to buy the RECs from your Approved Vendor. This may earn customers a rebate from the utility. Visit energyequity.illinois.gov to learn more. The State operates on a fiscal year basis ending on June 30 th of each year. This program is set to open up January, 30th 2019. Learn More about the IPA's implementation activities under CEJA. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. 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. Take Advantage of the Illinois SREC Program in Peoria IL Sun Collectors representatives understand you may have questions about the Illinois SREC program in Peoria IL. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. solar calculator. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Illinois offers a property tax exemption for home solar installations. Under the LTRRPP, the state will hold procurements for utility-scale wind and solar and will secure distributed generation and community solar REC contracts through the LTRRPP Adjustable Block Program (ABP). Net metering ensures that you benefit from the full value of your solar panels and is a great way to balance out your electricity production and consumption, which do not always happen at the same time. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. All rights reserved. For the average residential system, this comes out to more than $10,000 in additional savings. These customers will need to figure out net metering credits with that supplier. The first step towards earning SRECs is to shop for a solar panel system. Solar panels harness the energy from the sun and convert it into electricity. Carmel, Rural Electric Cooperatives, and Municipal Utilities located in MISO belong in Group A; Commonwealth Edison (ComEd), and Rural Electric Cooperatives and Municipal Utilities located in PJM belong in Group B. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! Our experts will be happy to discuss this exciting incentive and make sure you understand all the rewarding benefits Illinois SRECs can potentially bring to your project. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. Its our hope that when the goal is met in 2025, the state sets a new one and maintains the current incentives to help reach it. Instead, the total credit amount is applied to the income taxes you owe, which means you can only take the credit if you owe money on your taxes. Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. Which Tax Incentives Are The Best In Illinois? NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. the utility where system owners are credited for excess generation. Residential Solar Incentives (Small/14-unit buildings) ($/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. Is IL proposing increasing incentives for rooftop solar in the next 24 months? Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. 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. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Approved Vendors often work with Designees to manage various portions of solar system development. Commercial: RECs are a state incentive, whose value is equal to the solar energy you produce over 15 years times the price set by the Illinois Power Agency for RECs. Enrolling in net energy metering is, thankfully, a simple and straightforward process. Recent Posts. This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. Solar Rebates & Tax Incentives: What You Need to Know, State property tax exemptions in Illinois, Final thoughts on state solar incentives in Illinois, Illinois Shines helps residential solar producers sell their SRECs to earn additional income, The Illinois Solar for All program helps low-income households sign up for solar with no upfront cost, Value added by home solar is exempt from property tax assessments, Illinois mandates retail rate net metering but credits expire annually. Is my home or property a good fit for a solar system? The program lasts for 15 years after you install your photovoltaic (PV) equipment. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. Captcha validation failed. Register for free to start comparing quotes. Payments are usually sent out as a lump sum for systems under 25 kW (most residential systems) or over a 5- or 7-year period for bigger systems and commercial projects. Like homeowners, small businesses and nonprofits can apply to the Illinois Shines program through an approved vendor. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. Please enable scripts and reload this page. Types of Approved Vendors Distributed Generation Installer ("DG Installer"): A DG Installer also has received certification from the Illinois Commerce Commission ("ICC") to perform distributed generation installations. See how much you can save with this solar incentive on the. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! Solar projects serviced by Ameren Illinois, MidAmerican, Mt. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. Please note this is an incentive which is subject to tax. Learn More about the IPA's implementation activities under CEJA. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. Email. See our Community Solar page for more info. This Act included significant changes to the Adjustable Block/Illinois Shines program. capacity. Currently, the full retail rate for net energy metering in Illinois means the program will help reduce your panel payback period, maximize your long-term savings and help reduce your monthly electricity bills for the entire time your system produces electricity. Over the 15 years the program lasts, youre expected to earn around $12,600 for your solar production. Under Illinois law, one SREC is credited for each 1,000 kilowatt hours (or one megawatt) or power created and fed back into the grid. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. An SREC is a REC that specifically comes from a solar system. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. Community Solar are typically large systems from a minimum size of 500 kW up to 2 MW (AC) that feed into the grid and generating power for subscribers. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? Illinois Shines is part of the state's plan to hit its ambitious Renewable Portfolio Standard goal of producing 50% of its energy from renewable sources by the year 2040. If you buy electricity from a Retail Electric Supplier (e.g., through municipal aggregation or an individual contract), you must contact the supplier to enroll in net metering. RECs For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. Part I: The initial application into the program which contains detailed information on the system and its location. Call us at (773) 812-3447 for more information on SRECs. Under the Adjustable Block Program, this system falls into the Small DG category. 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. ISEA recommends system owners work The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. If you answer yes, the software will automatically direct you to fill in the required information. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed For the current guidebook for the Adjustable Block program, please click here. Well also include the average savings afforded by each perk to help you prioritize which to take. (1 REC = 1,000 How much power will a solar system on my roof generate? 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. The current block rate for systems under 25kW is $75.29, but it won't be for long! For solar energy customers, the April settlement date will likely make more sense than the October date. Above, weve discussed all of the incentives available to Illinois property owners. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. In this guide to solar benefits and incentive programs available in Illinois, youll learn: Our solar experts have sifted through hundreds of local governments and utility companies websites to find accurate information about current solar incentives in each state. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). As such, it makes sense to try to shift your billing year to end just after your highest consumption months.