Donate Net metering, also called net energy metering (NEM), is a billing policy that is mandated in many states by the local Public Utilities Commission (PUC). Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. Call us at (773) 812-3447 for more information on SRECs. 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. (Same as Project). RECs are certificates that are created when a renewable energy generating facility produces energy. Copyright 2023 LeafScore. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. 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. The idea is to boost Illinois solar investments by increasing their monetary value in addition to offering savings on electricity bills. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. Solar is hot in Illinois! Please contact our Customer Care Center if you have questions. 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. What Illinois Residents Need To Know About SRECs? 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. 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. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. 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. This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. 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. All Rights Reserved. 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 ILSFA program is an outstanding option for aspiring solar customers who cannot pay for their systems in cash or qualify for a loan or lease. Inventory, GreenBuildingprojects, as well as regulatoryand protocol The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). 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. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Is my home or property a good fit for a solar system? On September 15, 2021, Governor Pritzker signed the Climate & Equitable Jobs Act, which includes new funding for the Illinois Shines SREC program, a massive incentive for solar buyers in Illinois. These customers will need to figure out net metering credits with that supplier. Learn More about the IPA's implementation activities under CEJA. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. The credit was bumped up to $7,500 for some makes and models. Copyright 2009-2023 EnergySage, Inc. 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. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. In its place, Illinois state has set a threshold date of December 31st, 2024, or when new utility tariffs are set and approved (whichever is later). 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. 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. 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. Policy Blog Still, we love programs like this because it makes renewable energy far more accessible. In the chart below, well include a breakdown of all of the incentives and rebates you can take advantage of as a solar customer in Illinois. 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). Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. 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. Email. REC prices are determined through the Adjustable Block Program. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. 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. 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. If youre looking for a quote contact us today by phone or via our contact us page! The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. Of that 25 percent, six percent must come from solar. For instance, if you buy energy from ComEd at hourly prices, any net metering credits will also be based on the price of power at the time your array produces it and sends it to the grid. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. The IPA website is regularly updated with new information about the ABP. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. Is IL proposing increasing incentives for rooftop solar in the next 24 months? Solar projects serviced by Ameren Illinois, MidAmerican, Mt. Thats because the summer months are usually the highest production months for home solar. ILSFA-approved vendors are paid via the sales of the systems RECs. Distributed Generation Installer (DG Installer): A DG Installer is an entity that has received certification from the Illinois Commerce Commission to perform distributed generation installations. Spots Are Already Being Taken By Illinois Homeowners. Also known as a photovoltaic community renewable generation project.. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. 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. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. (1 REC = 1,000 Want to find the best deal on solar in all of Illinois? These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Well outline the steps you need to take below. advisory with regard tocarbon emissions and renewable fuels, TRANSACTION MANAGEMENTOnline - after site upgrade is complete(expected by mid May), CLIENTSResidential and Commercial Installers Residential and Commercial System Owners MunicipalitiesUtilities in a variety of settingsand market conditions around the globe, PAYMENT OPTIONSUpfront and fixed payment options with market based pricing for existing systems, www.srectrade.comToll free: (877) 466-4606Direct: (415) 763-7732Email:clientservices@srectrade.com, SPECIALTY100% SREC transaction focus500+ MW across 35,000+ assets under management, TRANSACTION MANAGEMENTOnline bid submission and system registration for installers and system owners. Its important to note that while the net energy metering program in IL is currently outstanding, these policies change all the time across the country. ATTENTION! The Agency reserves the right to add additional categories of market activities as needed. In 2023, the ITC will drop to 22%. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. Solar Professional Resources All utility companies in Illinois are required to participate, including Ameren and ComEd. The library zone below is used to load resources. solar calculator helps you assess your rooftop solar potential by combining your historical usage data with solar data in your area to provide a personalized evaluation for your property, including any rebates and credits. Educational Videos It takes just a few minutes to apply for when youre filing your taxes, and it provides an average value of over $6,000 in the Prairie State, provided you have a tax liability that allows you to take the full credit. Just keep in mind that the credit rate will drop in 2032. 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. Click below and use our process to receive multiple quotes instead: Connect with approved solar installers in your area. 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). Although this is around 10% lower than the national average of $23,940, its still a massive price tag to convert to renewable energy and one that many Illinois property owners cannot afford. More information about these programs can be found in the Administrative Code document above. You may be trying to access this site from a secured browser on the server. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. Community Solar Subscription: An interest in a community renewable generation project expressed in kilowatts, which is sized primarily to offset part or all of the subscribers electricity usage. Events 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. . 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. Individual Memberships Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. The average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. Well list these incentives below and provide a brief explanation as to how they work. 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. Utilities are only required to issue SREC payments quarterly, so the time it takes to receive your check varies. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. If you are looking for information on a program serving low-income and environmental justice communities, please visit the Illinois Solar for All program site. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. Please note this is an incentive which is subject to tax. You can answer some questions yourself, while others can be answered by your installer or sales agent. 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. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. Leigh Matthews is a sustainability expert and long time Vegan. SRECs are sold separately from the actual electricity they produce, which means owners can use the electricity from their solar array to directly lower their home or business electric bill and sell the SRECs that get created from that energy to the buyer. If you answer yes, the software will automatically direct you to fill in the required information. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. *Companies intend to be available for all procurement events. Commonwealth Edison offers the top utility net metering program in Illinois. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. We should note that the federal solar tax credit rate is scheduled to drop over the next ten years, according to the schedule below: Following 2034, the program will no longer be available. Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. 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. This incentive can net you several hundred dollars each year, seriously reducing your solar payback period. All rights reserved. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. Under the Adjustable Block Program, this system falls into the Small DG category. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. 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. 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! Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. 423 W.800S.#A317 Salt Lake City, UT 84101. REC prices can be found on page 180 of theFinal 2022 Long-Term Renewable Resources Procurement Plan released in August 2022. www.carbonsolutionsgroup.comToll free: (866) 499-1456Email: contact@carbonsolutionsgroup.com, SPECIALTYEnvironmental asset valuation, Heres why: Illinois is one of just a few states that pay you to generate clean electricity from solar and wind renewable energy systems. Dan Simms is an experienced writer with a passion for renewable energy. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. At that time, youll be paid a lump sum for all of the credits you accrued. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. With these incentives in the works, its a great time to start evaluating your solar options. in the Illinois Shines program. 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. 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. Learn more about what a REC is here: https://vimeo.com/113250210. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. The first step towards earning SRECs is to shop for a solar panel system. If you are deemed a qualified person as defined by Illinois Administrative Code 83 468.20, then yes! Programand via direct deposit (ACH) to a bankaccount of their choice. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. See how much you can save with this solar incentive on the. The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. 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. 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). Aegis Construction Group is an Illinois state-approved solar energy system vendor. For solar energy customers, the April settlement date will likely make more sense than the October date. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. The quotes would include current incentives available in your area. Through the program, you earn one credit for every 1,000 kWh (1 megawatt-hour) your system generates, which most IL property owners generate in a single month. 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. Ethics Reporting Associated with Communications with the IPA provides more information. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. Federal and state incentives are offered to ComEd customers who choose to go solar. See our Community Solar page for more info. Instead, approved vendors facilitate the application process and transaction. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. are not able to meet that guideline. 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! 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. The program lasts for 15 years after you install your photovoltaic (PV) equipment. Its possible that this incentive will be discontinued again if funds run out. While its an excellent opportunity for some Illinoisans to support the clean energy movement without laying out a ton of money, its not the most beneficial way to get solar. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. We use cookies to ensure that we give you the best experience on our website. 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. Illinois offers a property tax exemption for home solar installations. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. 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. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. 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. 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. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications Captcha validation failed. 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. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). 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). This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. 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. Leigh Matthews, BA Hons, H.Dip. Site maintained byEnergy SolutionsAll Rights Reserved. It does not appear on display pages. Well break down the initial steps below. The Agency's activities related to the development of new renewable resources to support the Illinois renewable Portfolio Standard are guided by the Long-Term Renewable Resources Procurement Plan. 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. the utility where system owners are credited for excess generation. 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. Provided you expect to owe around $1,200 or more each year in taxes for the next five years, you should be able to take the entire credit or close to it. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. What are the best rebates and incentives to take when converting to solar in Illinois? Still, you should plan to include the SREC value in your income and to pay taxes on them. See solar prices from qualified, local companies. 2023 Illinois Shines. Register on EnergySage today to get quotes from local, reputable Illinois installers. She is passionate about making clean energy more accessible to everyone and has worked in clean energy communications since graduating from the University of New Hampshire with a Bachelors in Business Administration. Usually, you can expect to receive your payment within a year of your systems completion. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? Your installer may also be a Designee or an Approved Vendor with the Program. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. 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 net energy metering program in Illinois is outstanding, even compared to similar programs in other states. Lets assume this is your solar panel system and it generates six SRECs a year. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. What are the most efficient solar panels? This Act included significant changes to the Adjustable Block/Illinois Shines program. Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. Phase I of the portal was launched on January 31, 2023. When you have a solar system and are being billed for net metering, you are charged only for the net amount of energy you use during each billing period (i.e., the amount of energy we deliver to you minus the excess amount you send back to the smart grid). The state has a local SREC market where your credits can be sold. What You Need to Know About the Illinois Shines Program, What You Need to Know About the Illinois Solar for All Program, What You Need to Know About the Solar Property Tax Exemption in Illinois. Additionally, the Illinois Shines Program has been a bit rocky in the past. Having trouble deciding? These two tax incentives offered in Illinois can make going solar even more affordable: Worried about your property tax bills going up because of the value your solar system will add to your home? If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. Shouldnt solar be the same? 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. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power.