To learn about any incentives you may qualify for, launch our It helps pay off your system more quickly and maximizes your long-term energy savings. The Agency reserves the right to add additional categories of market activities as needed. Illinois has two main solar policies that will have the biggest financial impact on your investment: 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. A technical error has occurred. Unfortunately, Illinois doesnt waive sales tax on PV equipment. 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. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). REC Procurements (Same as System), Renewable Energy Credit (REC) or Solar Renewable Energy Credit (SREC): The environmental attributes represented by 1 MWh of electricity generated by a renewable generator. The value of an SREC is determined by the market subject to supply and . 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. This is where SRECs come in a utility can claim the electricity produced from your home solar system to help meet RPS requirements through the purchase of SRECs. 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. For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. 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. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. 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. 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. ATTENTION! Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). You dont need to apply for anything or file any paperwork, and the savings are massive. Youll see far less personal benefit than if you purchased or financed panels. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. 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. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. 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. All rights reserved. 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). When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. To understand how much power your system will generate, please work with your Approved Vendor, as each system is different. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. RECs are a You can follow the steps below to ensure you get access to this outstanding benefit program. The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. An SREC is a REC that specifically comes from a solar system. You can also check the current block status here. Are energy-efficient appliances worth it? That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. 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. (1 REC = 1,000 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. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. 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. Read ourprivacy policy. 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. 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. Participating in Illinois Shines means you play an important role in helping the State meet its renewable energy goals. Ethics Reporting Associated with Communications with the IPA provides more information. 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. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. Office. Instead, approved vendors facilitate the application process and transaction. Illinois Solar Legislation 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. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. 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. 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). All rights reserved. How much power will a solar system on my roof generate? Under the Adjustable Block Program, this system falls into the Small DG category. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. 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. Solar farms: what are they and how do they work? But, most people wont qualify unless they already have solar installation experience. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. NT. Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. 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, What are the best rebates and incentives to take when converting to solar in Illinois? For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. 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. Commonwealth Edison offers the top utility net metering program in Illinois. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). 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. Please enable scripts and reload this page. 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. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. Browse approved vendors here. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. Illinois has a very favorable net metering program that helps bring down effective energy costs. The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Lets assume this is your solar panel system and it generates six SRECs a year. Learn more about the Illinois Solar Renewable Energy Credits Program. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. How do I go about finding someone to install solar on my roof/property? 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 credit was bumped up to $7,500 for some makes and models. cost of photovoltaic (PV) panels in Illinois, low-income households to convert to solar, Federal Solar Investment Tax Credit (ITC), Offers a credit to your tax liability for 30% of your entire system cost, Provides credits for all solar production, which you can sell for a profit, Varies based on the size of your system, your total energy production rate and more, Offers an accessible payment plan for low-income solar customers, Varies based on the size of your system, your average monthly electric bill and more, Waives all taxes on your property for the value added to your home by your PV system, Varies based on your system size, system installation cost and your local property tax rate, Provides credits for excess energy production, which can be used to pay down future bills, Varies based on your monthly utility bills and your average rate of solar production, Various rebate programs offered by local utility companies and municipalities, Varies based on the specific incentive, where you live and your utility provider. Block groups are determined by utility companies and load zones. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? For the average residential system, this comes out to more than $10,000 in additional savings. How does the Illinois SREC program work? Be sure to check with your aggregator of choice to confirm their participation. 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. This is because the utility uses either April or October as the annual billing period end. What are the most efficient solar panels? Learn More about the IPA's implementation activities under CEJA. Is Illinois reducing incentives for rooftop solar in the next 24 months? In Illinois you as a solar owner contract with an Approved Vendor (through your installer) to sell all the SRECs your system is expected to generate over the first 15 years. Inventory, GreenBuildingprojects, as well as regulatoryand protocol Solar Ambassadors Visit energyequity.illinois.gov to learn more. The IPA (Illinois Power Authority) has in the past bought SRECs in "procurement rounds". However, we dont expect this to appear in the near future. Community Solar Resources Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Homeowners Take control of your power bill, become more energy independent. The IPA is purchasing SRECs under a 15-year contract. Aegis Construction Group is an Illinois state-approved solar energy system vendor. You may be trying to access this site from a secured browser on the server. Renew Your Membership Want to find the best deal on solar in all of Illinois? The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. the utility where system owners are credited for excess generation. represents the carbon or pollution avoided from the grid. 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. Dan Simms is an experienced writer with a passion for renewable energy. Visit energyequity.illinois.gov to learn more. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. SREC Incentive Overview and Status as of March 31, 2021The solar renewable energy credit (or "SREC") has been an exceptional Illinois solar incentive available through the Illinois Shines program. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. The best states for a home solar energy system arent 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 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. 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. Illinois SRECs help those solar system owners recoup their investment. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. In fact, Illinois has better incentives than most other states. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. way to track and monetize these environmental benefits and compensate 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. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. capacity. 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? 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. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. The net energy metering program in Illinois is outstanding, even compared to similar programs in other states. 2023 Illinois Shines. 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. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. If you are not a robot then please try again. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. Whats The Near-Term Outlook For More Incentives In Illinois? Illinois Power Agency2022. Net metering measures the electricity your PV system produces and credits you for it on your electric bill. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. Below is the states definition of a qualified person:A person who performs installations on behalf of the certificate holder and who has either satisfactorily completed at least five installations of a specific distributed generation technology or has completed at least one of five listed programs requiring lab or field work and received a certification of satisfactory completion. With these incentives in the works, its a great time to start evaluating your solar options. Learn More about the IPA's implementation activities under CEJA. Approved Vendors often work with Designees to manage various portions of solar system development. All utility companies in Illinois are required to participate, including Ameren and ComEd. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Its possible that this incentive will be discontinued again if funds run out. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. Is my home or property a good fit for a solar system? Illinois SREC incentives are managed under the Adjustable Block Program. 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. Federal and state incentives are offered to ComEd customers who choose to go solar. Having trouble deciding? This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. See how much you can save with this solar incentive on the. Use the. Her work on solar policy has been published in Canada's National Observer. This Act included significant changes to the Adjustable Block/Illinois Shines program.
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