In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. 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. 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. Illinois Solar Legislation If you answer yes, the software will automatically direct you to fill in the required information. The questions below will affect whether you save money. An SREC is a REC that specifically comes from a solar system. With these incentives in the works, its a great time to start evaluating your solar options. 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. This includes installers, marketing firms, lead generators, and sales organizations. 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. 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. IPA Announces Initial Illinois SREC Prices Certasun 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. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. The IPA website is regularly updated with new information about the ABP. In 2023, the ITC will drop to 22%. For a personalized assessment of the credits and rebates you may qualify for, launch our What Do Illinoisans Need to Know About the Federal Solar Tax Credit? The value of an SREC is determined by the market subject to supply and . Illinois Solar Incentives & Tax Credits for 2023 - LeafScore solar calculator. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. 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. 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. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. 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. Just keep in mind that the credit rate will drop in 2032. It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. All applications to the Adjustable Block Program must be submitted by an approved vendor, which includes solar installers, project developers, and SREC brokers and aggregators. Some homeowners can get solar installed for free and then enjoy lower utility payments and the warm fuzzy feeling of helping enhance the green energy grid. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. SRECs in Missouri & Illinois | StraightUp Solar Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. Heres why: Illinois is one of just a few states that pay you to generate clean electricity from solar and wind renewable energy systems. Community Solar Resources The complete list of Illinois solar incentives and tax credits for 2023, plus how to take advantage. The Illinois Power Agency determines the cost of the block price value. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. For solar energy customers, the April settlement date will likely make more sense than the October date. Its possible that this incentive will be discontinued again if funds run out. Still, we think this is an outstanding solar perk and well worth the time it takes to apply. All utility companies in Illinois are required to participate, including Ameren and ComEd. The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. The current block rate for systems under 25kW is $75.29, but it won't be for long! Visit energyequity.illinois.gov to learn more. Contact us at. Are energy-efficient appliances worth it? Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? tradingand energy forecasting, development ofcarbon and renewable Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 payments will be made (to clients)pursuant to the rules of the The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! Illinoiss net metering rules used to allow utilities to stop offering net metering once they reached 5% of total peak demand in the previous year. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. The initial prices for most of northern Illinois are: Small systems: $72.97 per SREC (applies to systems smaller than 10 kilowatts AC) Large systems: $73.23 per SREC (applies to systems between 10 and 25 kilowatts AC) These prices will decline in "blocks" over time as more-and-more homeowners go solar. For the average Illinois resident, this solar program yields around $12,600 over the life of their system! 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. Karsten is an editor and energy specialist focused on environmental, social and cultural development. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. Illinois has a very favorable net metering program that helps bring down effective energy costs. The State operates on a fiscal year basis ending on June 30 th of each year. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. 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. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. Leigh Matthews, BA Hons, H.Dip. However, if your system is larger than that, you receive the payments over the course of five years. If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. Over the 15 years the program lasts, youre expected to earn around $12,600 for your solar production. Some electric companies pay out two lump sums one at seven years and one at 15 years. Ethics Reporting Associated with Communications with the IPA provides more information. 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. The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. are valued for the total energy production from an array and therefore Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. (Same as Project). 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. Best of all, the program takes no time to enroll in, as your installer will set up automatic credit sales for you. Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. 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. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. 30% credit for systems installed between 2005 and 2022, 0% credit for systems installed in 2024 or later, 30% credit for systems installed between 2022 and 2032, 0% credit for systems installed after 2035, Put toward your solar loan as additional principal to reduce the payoff timeline, Use to recoup your cash investment in solar to expedite your. Its possible that in 2025 when the state reaches its RPS goal, some incentives will be abandoned or changed for the worse. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. 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. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. It looks like your browser does not have JavaScript enabled. In addition to FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. way to track and monetize these environmental benefits and compensate threshold. The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. RPS Timeline Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. owners for the countless benefits to Illinois. REC prices are determined through the Adjustable Block Program. SRECs are a great way for businesses and nonprofits to generate savings in Illinois. Illinois SREC | Program Schedule | AEGIS Construction Group You dont need to apply for anything or file any paperwork, and the savings are massive. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. Once you determine your block group and the size of your installation (most home solar systems will qualify as a Small DG), you can use this chart from the Illinois Power Agency below to understand how much your SRECs might be worth. Illinois SREC Program Peoria IL I Sun Collectors Solar Panels Pricing & Incentives: Guide To Solar Panels In Illinois 2022 - Forbes Home Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. 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.