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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. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. If that does happen, and the state doesnt set a new RPS goal, the likelihood is that net energy metering will either no longer be available or will drop to a less beneficial avoided-cost rate. This may earn customers a rebate from the utility. The quotes would include current incentives available in your area. 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. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). Browse approved vendors here. Commonwealth Edison offers the top utility net metering program in Illinois. Factor in a solid SREC market and the federal tax credit and some homeowners can quickly recoup nearly 50% of the cost of a home solar energy system. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. Click here to access the Programs Community Solar Brochure. 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. 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. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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. Homeowners Take control of your power bill, become more energy independent. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Across the country, NEM is one of the most beneficial incentives available for solar customers. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). 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). Call us at (773) 812-3447 for more information on SRECs. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. With one credit earned each month, thats an average of $840 per year your system will earn you. Utilities are only required to issue SREC payments quarterly, so the time it takes to receive your check varies. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. Donate Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Let us help you partner with the state of Illinois to make it a better environment for all, and a better vehicle for the money you'd be spending on electricity bills. Just keep in mind that the credit rate will drop in 2032. 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. Register on EnergySage today to get quotes from local, reputable Illinois installers. Solar Professional Resources Solar is hot in Illinois! RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. Details from past DG procurement events including winning bid prices are listed on the IPA website. Illinois SREC incentives are managed under the Adjustable Block Program. You can, however, take a partial credit the first year and roll over any leftover credit for up to five years. This gives you a chance to use up any remaining credits for the year. *Companies intend to be available for all procurement events. 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. For the latest info see our blog post. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. The Agency reserves the right to add additional categories of market activities as needed. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. This Act included significant changes to the Adjustable Block/Illinois Shines program. Ethics Reporting Associated with Communications with the IPA provides more information. owners for the countless benefits to Illinois. Sign up for our email newsletter! The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. Lets assume this is your solar panel system and it generates six SRECs a year. This means the price of SRECs declines as more solar energy systems are installed. Still, we love programs like this because it makes renewable energy far more accessible. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. The solar perks in Illinois can collectively bring the cost of solar conversion down by thousands of dollars, making going solar far more accessible and affordable to residents in the state. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. Want to know more about the Illinois Solar Renewable Energy Credit Program? Concerned about climate change? Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. I want solar! 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. Approved Vendors often work with Designees to manage various portions of solar system development. 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. Which Tax Incentives Are The Best In Illinois? NEW Illinois SREC Prices for 2022-2023 Program Year. 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. 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. 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. Between the 30% federal tax credit and the SREC incentive, up to 50 to 60% of your solar system or more could be paid for from these two incentives alone. Renewable Resources Still, we think this is an outstanding solar perk and well worth the time it takes to apply. Above, weve discussed all of the incentives available to Illinois property owners. Participants in the Solar for All program can expect no upfront costs to install solar, no ongoing costs (i.e., free maintenance), and fees that wont exceed 50% of the value of energy generated by the system. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Formore details on Net Metering, view our Frequently Asked Questions. This is a perk that helps keep down the upfront cost of solar systems to make them a bit more accessible, so it would be a great addition to Illinoiss collection of benefit programs. 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. Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. 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. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. Renew Your Membership Also known as a photovoltaic community renewable generation project.. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. You can follow the steps below to ensure you get access to this outstanding benefit program. 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). As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. 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. Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. 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. This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. In his free time when he's not checking his own home's solar production he enjoys outdoor activities like hiking, mountain biking, skiing and rock climbing. Top brands in 2023, REC pricing for the 2022-2023 program year. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. Illinois Solar Legislation All of CSG's ABP customers will be receiving the following documents in . Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. 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. It allows residents with household incomes below 80% of the median to get PV panels installed for no upfront costs. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications represents the carbon or pollution avoided from the grid. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. kWh) This opportunity is different than a net metering agreement with Having trouble deciding? Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. Additionally, the IRA provides increased credits for purchasing electric vehicles. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. 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. The average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. 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). More information about these programs can be found in the Administrative Code document above. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. 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. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. ATTENTION! Additionally, eligible nonprofits and public entities can apply for the Illinois Solar for All program, which aims to promote access to the benefits of solar through program incentives. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Federal and state incentives are offered to ComEd customers who choose to go solar. Copyright 2009-2023 EnergySage, Inc. Learn More about the IPA's implementation activities under CEJA. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? 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. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. 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. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). payments will be made (to clients)pursuant to the rules of the Its possible that this incentive will be discontinued again if funds run out. Small projects can work with 3rd party aggregators if they 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. 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). This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. See solar prices from qualified, local companies. 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. In 2023, the ITC will drop to 22%. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. All Rights Reserved. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. Importantly, the pricing of your SRECs is fixed, and when you receive the incentive depends on the size of your solar panel system; if youre installing a system with an inverter size of less than 10 kW, you receive your SREC incentive as an upfront lump-sum payment. In the sections below, well provide responses to some of the most common questions we get asked about solar perks and benefit programs in Illinois. This credit has been available since 2005, and it has gone through some changes since it was initially offered. All excess energy is credited at the full retail rate, which is the best-case scenario. 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. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. 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. 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. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. 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. Otherwise, youre paying to produce energy for which the utility wont compensate 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. 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. These Incentives Are Limited! Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. Specifically, Section 10-10 of the Illinois Property Tax Code states that homeowners who install solar can file an alternate valuation of their home improvements with the chief county assessment officer. As such, taking advantage of this is a no-brainer. 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. 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. represents the clean attributes of solar electricity. Unfortunately, Illinois doesnt waive sales tax on PV equipment. If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. Part I approval results in an ICC approved contract with one of the distribution utilities. In addition to the 30 percent federal solar tax credit (aka investment tax credit or ITC) for solar system owners, Illinois residents can receive additional financial benefits through the states solar renewable energy credits (SREC) market. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. It does not appear on display pages. Ameren Illinois also offers net metering to residential customers. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Site maintained byEnergy SolutionsAll Rights Reserved. Events Education Webinars, Illinois Solar Energy Association c/o Shamrock Electric | 1281 E. Brummel Ave Elk Grove Village, IL 60007 | contactisea@illinoissolar.org, Copyright 2009 - 2018 Illinois Solar Energy Association, FAQs - Utility, Community, and Large-Scale Solar, Consumer Protection Business Code of Conduct, Future Energy Jobs Act Workforce Development Programs, COVID-19 Resources for Solar Professionals. 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. 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. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. NT. RECs are certificates that are created when a renewable energy generating facility produces energy. 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. . In fact, Illinois has better incentives than most other states. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project.