through their installer or contact the two preferred national companies For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. How much power will a solar system on my roof generate? As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. 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. 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. 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. Solar farms: what are they and how do they work? 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 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. 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. Usually, you can expect to receive your payment within a year of your systems completion. Homeowners get one SREC for. 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). Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. Sign up for our email newsletter! 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. Be sure to check with your aggregator of choice to confirm their participation. *Companies intend to be available for all procurement events. 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. Learn More about the IPA's implementation activities under CEJA. 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. 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 Combined with our proprietary energy savings program we provide Illinois businesses . Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. Learn More. What are the best rebates and incentives to take when converting to solar in Illinois? We use cookies to ensure that we give you the best experience on our website. Speaking of Solar Blog, Homeowner Resources Enrolling in net energy metering is, thankfully, a simple and straightforward process. 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. solar calculator. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. Site maintained byEnergy SolutionsAll Rights Reserved. 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. 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. energy projects,emissions mitigation and management,GHG Emissions For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. (1 REC = 1,000 Are energy-efficient appliances worth it? Newsletter Sign Up, News & Announcements In Illinois, net metering customers may be eligible for a Smart Inverter Rebate if they install and use an approved Smart Inverter as part of their solar energy system. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. Illinois Power Agency2022. Well list these incentives below and provide a brief explanation as to how they work. represents the carbon or pollution avoided from the grid. Contact us at. threshold. These can be single projects or bundled together to meet that The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Karsten is an editor and energy specialist focused on environmental, social and cultural development. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. 423 W.800S.#A317 Salt Lake City, UT 84101. 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. The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). 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. Lastly, each size range within a category corresponds to an SREC price. 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. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. 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. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. What are the most efficient solar panels? See why here. 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. Is Illinois reducing incentives for rooftop solar in the next 24 months? If you answer yes, the software will automatically direct you to fill in the required information. Learn more about what a REC is here: https://vimeo.com/113250210. listed below: Carbon Solutions Group or SRECTrade. To learn about any incentives you may qualify for, launch our All rights reserved. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. 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). Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications 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. Instead, approved vendors facilitate the application process and transaction. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. 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. 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. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. For the average residential system, this comes out to more than $10,000 in additional savings. . The price drop between blocks is 4%. 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. solar panel. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). At that time, youll be paid a lump sum for all of the credits you accrued. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. RECs The current block rate for systems under 25kW is $75.29, but it won't be for long! 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. 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. The IPA (Illinois Power Authority) has in the past bought SRECs in "procurement rounds". Programand via direct deposit (ACH) to a bankaccount of their choice. Leigh Matthews is a sustainability expert and long time Vegan. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. The Agency reserves the right to add additional categories of market activities as needed. What Illinois Residents Need To Know About SRECs? Casey is an EnergySage writer covering solar, community solar, and sustainability. The value of an SREC is determined by the market subject to supply and . With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. In addition to FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. Whats The Near-Term Outlook For More Incentives In Illinois? Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. For the average Illinois resident, this solar program yields around $12,600 over the life of their system! Illinois may not have the year-round sunshine of the Southwest, but it does have a great solar power market because of the available financial incentives. All rights reserved. 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. NEW Illinois SREC Prices for 2022-2023 Program Year. In Illinois, the credit averages out to $6,143.