Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC 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. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) For more information, seeenergy.gov. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. 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. The Illinois SREC plus Federal Tax Credit makes solar very appealing. Leigh Matthews is a sustainability expert and long time Vegan. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Register on EnergySage today to get quotes from local, reputable Illinois installers. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. Utility companies that need to meet the states RPS goals buy them to remain in compliance. 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. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. Dont forget about federal solar incentives! Solar Ambassadors Click below and use our process to receive multiple quotes instead: Connect with approved solar installers in your area. As of the time of writing, each SREC in IL is worth approximately $72. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. The Agency reserves the right to add additional categories of market activities as needed. From there, each category is further divided by the size of the solar installation; if your installation produces less than 25 kW you fall into the Small DG category, whereas the Large DG, Traditional Community Solar, Community-Driven Community Solar, and Public School categories all range from 25 kW up to 5,000 kW. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. Illinois Shines is the brand name for the Adjustable Block Programa state-administered incentive program supporting the development of new solar energy generation in Illinois. Enter your zip code to find out what solar panels cost from installers near you. Illinois SRECs help those solar system owners recoup their investment. Enrolling in this program is far more complicated than the other incentives discussed above. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Residential Solar Incentives (Small/14-unit buildings) ($/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. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Phase I of the portal was launched on January 31, 2023. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). A technical error has occurred. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. 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. Also known as a photovoltaic community renewable generation project.. Lets assume this is your solar panel system and it generates six SRECs a year. All utility companies in Illinois are required to participate, including Ameren and ComEd. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. Thats because the summer months are usually the highest production months for home solar. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. 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. The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. You are not guaranteed to save money unless your contract includes an explicit guarantee. Whether youre already a proud owner of a solar array system or youre thinking about making the solar investment, contact us today to learn more. You can also check the current block status here. 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. This credit has been available since 2005, and it has gone through some changes since it was initially offered. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. For homeowners interested in solar at home but unsure about the upfront cost, check out Illinoiss Solar for All program. Business Memberships Visit energyequity.illinois.gov to learn more. The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. Ameren Illinois also offers net metering to residential customers. Want to know more about the Illinois Solar Renewable Energy Credit Program? The library zone below is used to load resources. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. The price drop between blocks is 4%. 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. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. For the average Illinois resident, this solar program yields around $12,600 over the life of their system! Leigh Matthews, BA Hons, H.Dip. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. payments will be made (to clients)pursuant to the rules of the Are energy-efficient appliances worth it? Ethics Reporting Associated with Communications with the IPA. A renewable energy certificate (REC) is a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. 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. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. 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. Just keep in mind that the credit rate will drop in 2032. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. How do solar incentives affect the cost of solar panels in Illinois? The credit was bumped up to $7,500 for some makes and models. Learn More about the IPA's implementation activities under CEJA. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. 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). 2023 Illinois Shines. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. Additionally, the IRA provides increased credits for purchasing electric vehicles. Find the best price from solar installers in Illinois. The questions below will affect whether you save money. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. Solar panels harness the energy from the sun and convert it into electricity. Solar farms: what are they and how do they work? How do I go about finding someone to install solar on my roof/property? With one credit earned each month, thats an average of $840 per year your system will earn you. These Incentives Are Limited! Events These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. 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. Some electric companies pay out two lump sums one at seven years and one at 15 years. Click here to access the Programs Community Solar Brochure. Learn more about the technology of photovoltaics from the US Department of Energy here: Consulting with an Approved Vendor is the best way to figure out if your home (either your roof or your property for ground mounted systems) would be a good fit for a solar system. Please note this is an incentive which is subject to tax. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. Copyright 2009-2023 EnergySage, Inc. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Having trouble deciding? These credits work similarly to the federal solar tax credit. capacity. Illinois SREC incentives are managed under the Adjustable Block Program. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. RECs are certificates that are created when a renewable energy generating facility produces energy. 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. 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. Under the Adjustable Block Program, this system falls into the Small DG category. Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. 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. If you are not a robot then please try again. 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, Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. 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. The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Enrolling in net energy metering is, thankfully, a simple and straightforward process. 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. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Additionally, the Illinois Shines Program has been a bit rocky in the past. 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. Dont delay, enjoy the benefits of generating electricity from the sun! 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. We recommend using the money earned via your credits to: Selling your SRECs on the local market is easier to do than you might think, as its automatic for most homeowners. tradingand energy forecasting, development ofcarbon and renewable It looks like your browser does not have JavaScript enabled. Please enable scripts and reload this page. The overall Illinois Shines program address three areas: Distributed Generation, or DG for short refers to behind the meter solar systems intended to generate electricity for the home or building they are connected to. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. 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). The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! This Act included significant changes to the Adjustable Block/Illinois Shines program. This Act included significant changes to the Adjustable Block/Illinois Shines program. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Community Solar Resources This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). Her work on solar policy has been published in the Canadian National Observer. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. 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. Top brands in 2023, REC pricing for the 2022-2023 program year. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. To learn about any incentives you may qualify for, launch our (1 REC = 1,000 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. Newsletter Sign Up, News & Announcements REC Procurements Unfortunately, the program ran out of funding in late 2020.The availability of SREC funding was divided between "Group A," which is largely run by Ameren downstate The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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. These can be single projects or bundled together to meet that Still, we love programs like this because it makes renewable energy far more accessible. Ethics Reporting Associated with Communications with the IPA provides more information. NT. 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. 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. The IPA is purchasing SRECs under a 15-year contract. 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. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. REC prices are determined through the Adjustable Block Program. What are the best rebates and incentives to take when converting to solar in Illinois? Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Its possible that this incentive will be discontinued again if funds run out. NEW Illinois SREC Prices for 2022-2023 Program Year. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. However, if your system is larger than that, you receive the payments over the course of five years. 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. Please contact our Customer Care Center if you have questions. All rights reserved. The program lasts for 15 years after you install your photovoltaic (PV) equipment. 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. Is my home or property a good fit for a solar system? Contact Tick Tock Energy to get a quote today! Learn More. 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). One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). 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. It allows residents with household incomes below 80% of the median to get PV panels installed for no upfront costs. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. Illinois Power Agency 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. Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. The Illinois SREC plus Federal Tax Credit makes solar very appealing. are not able to meet that guideline. The program is made possible via the REC market in Illinois. 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. 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. 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 have more questions or would like to see a quote for your home, farm or facility, our experts will be happy to discuss further! 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. 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. 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. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. 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. Above, weve discussed all of the incentives available to Illinois property owners. 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. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. 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). Owners of solar systems can generate SRECs from the energy their solar panels produce. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications