If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Otherwise, youre paying to produce energy for which the utility wont compensate you. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. 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. 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. Karsten is an editor and energy specialist focused on environmental, social and cultural development. Unfortunately, Illinois doesnt waive sales tax on PV equipment. The credit was bumped up to $7,500 for some makes and models. 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. Leigh Matthews is a sustainability expert and long time Vegan. owners for the countless benefits to Illinois. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Part I: The initial application into the program which contains detailed information on the system and its location. 2023 Illinois Solar Incentives Guide (Tax Credits, Rebates) - EcoWatch You may participate in Illinois Shines in one of two ways: Whether you are planning to install solar on your property or subscribe to a community solar project, you must work with an Approved Vendor who will either submit your solar system to the Program or register your community solar subscription with an already established Community Solar project in the Program. 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. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Learn more below. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. You can, however, take a partial credit the first year and roll over any leftover credit for up to five years. The price drop between blocks is 4%. 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. Renewable Resources Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. 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). 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. Some homeowners can get solar installed for free and then enjoy lower utility payments and the warm fuzzy feeling of helping enhance the green energy grid. Commonwealth Edison offers the top utility net metering program in Illinois. The Illinois SREC plus Federal Tax Credit makes solar very appealing. 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. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. Of that 25 percent, six percent must come from solar. However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. 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. 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. 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 July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. Her work on solar policy has been published in Canada's National Observer. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. 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. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. What are the best rebates and incentives to take when converting to solar in Illinois? We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. This Act included significant changes to the Adjustable Block/Illinois Shines program. The program is made possible via the REC market in Illinois. Illinois SRECs- What they are and how to model them in Aurora Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. Renewable Energy Credit Prices for the Illinois Solar for All Program Usually, you can expect to receive your payment within a year of your systems completion. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. REC Procurements Browse approved vendors here. Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. 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, 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. Phase I of the portal was launched on January 31, 2023. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. 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. These customers will need to figure out net metering credits with that supplier. 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. energy projects,emissions mitigation and management,GHG Emissions 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. You dont need to apply for anything or file any paperwork, and the savings are massive. See solar prices from qualified, local companies. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). 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. *Companies intend to be available for all procurement events. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). If you are not a robot then please try again. However, CEJA altered the program from this cascading approach to an annual block approach. 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. Still, we love programs like this because it makes renewable energy far more accessible. Illinois Adjustable Block Program Overview - Carbon Solutions SREC Trading See why here. Is Illinois reducing incentives for rooftop solar in the next 24 months? The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. 423 W.800S.#A317 Salt Lake City, UT 84101. kWh) This opportunity is different than a net metering agreement with Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. 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. 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. solar panel. More information about these programs can be found in the Administrative Code document above. 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. Renew Your Membership How do solar incentives affect the cost of solar panels 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. 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. way to track and monetize these environmental benefits and compensate All Rights Reserved. Youll see far less personal benefit than if you purchased or financed panels. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. The program lasts for 15 years after you install your photovoltaic (PV) 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). represents the carbon or pollution avoided from the grid. illinois srec program - mysolidbox.com If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. 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. Are energy-efficient appliances worth it? Visit energyequity.illinois.gov to learn more. capacity. Please enable scripts and reload this page. Use the. Copyright 2009-2023 EnergySage, Inc. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. 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.