Policy Webinars, Solar Tour The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. Shouldnt solar be the same? Solar is hot in Illinois! Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. In Illinois, the credit averages out to $6,143. Contact Tick Tock Energy to get a quote today! RECs Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. The credit was bumped up to $7,500 for some makes and models. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. That means your taxes wont increase just because you convert to solar energy. Illinois Shines: Illinois is one of few states with a Solar Renewable Energy Credit (SREC) program to support the development of solar projects in the state. 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. 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. This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. Across the country, NEM is one of the most beneficial incentives available for solar customers. 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. 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. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. You may be trying to access this site from a secured browser on the server. Combined with our proprietary energy savings program we provide Illinois businesses . Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. Spots Are Already Being Taken By Illinois Homeowners. 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, SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. The Agency reserves the right to add additional categories of market activities as needed. (1 REC = 1,000 Find the best price from solar installers in Illinois. 423 W.800S.#A317 Salt Lake City, UT 84101. 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). An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. Learn More about the IPA's implementation activities under CEJA. 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. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Net energy metering makes it far more likely for residents to offset their utility bills entirely, helping to maximize their energy savings and reduce the amount of time it takes to pay off their equipment. Dont be. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. The idea is to boost Illinois solar investments by increasing their monetary value in addition to offering savings on electricity bills. Is my home or property a good fit for a solar system? If you go solar while theres still capacity for the 2022-2023 program year, your SRECs would sell for $78.51 each and you would earn roughly $7,066 in SREC sales! 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. Renewable Energy Credit (REC) is a tradable, environmental asset that REC Procurements 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. 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! Learn more about what a REC is here: https://vimeo.com/113250210. 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. Energy Solutions has been designated the Program Administrator. Policy Blog See solar prices from qualified, local companies. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. Illinois SREC incentives are managed under the Adjustable Block Program. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. Dont forget about federal solar incentives! This is because the utility uses either April or October as the annual billing period end. However, if your system is larger than that, you receive the payments over the course of five years. Federal and state incentives are offered to ComEd customers who choose to go solar. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. 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. A If you buy electricity from a Retail Electric Supplier (e.g., through municipal aggregation or an individual contract), you must contact the supplier to enroll in net metering. This guarantees clean energy savings. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. All utility companies in Illinois are required to participate, including Ameren and ComEd. Thats because the summer months are usually the highest production months for home solar. Copyright 2023 LeafScore. For example, if you are a homeowner in Illinois with Comed that purchases residential solar, each 1,000 kWh of electricity you produce from your solar panel would be equivalent to one SREC worth $64.56. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. 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. For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. The Illinois SREC plus Federal Tax Credit makes solar very appealing. Well also include the average savings afforded by each perk to help you prioritize which to take. Homeowners Take control of your power bill, become more energy independent. kWh) This opportunity is different than a net metering agreement with solar panel. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? Casey is an EnergySage writer covering solar, community solar, and sustainability. 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. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. What are the best rebates and incentives to take when converting to solar in Illinois? In some cases, ComEd customers actually purchase energy from another supplier. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. 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). At that time, youll be paid a lump sum for all of the credits you accrued. Phone. The library zone below is used to load resources. 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. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. How do I go about finding someone to install solar on my roof/property? What are the most efficient solar panels? Well outline the steps you need to take below. Its possible that this incentive will be discontinued again if funds run out. 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. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. 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. Net metering measures the electricity your PV system produces and credits you for it on your electric bill. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. Its possible that in 2025 when the state reaches its RPS goal, some incentives will be abandoned or changed for the worse. Which Tax Incentives Are The Best In Illinois? However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. For more information, seeenergy.gov. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. 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). 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. For the current guidebook for the Adjustable Block program, please click here. If you only have time to file for one credit, we strongly suggest making it this one. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). Please note this is an incentive which is subject to tax. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Business Memberships 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. 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. The state has a local SREC market where your credits can be sold. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. Newsletter Sign Up, News & Announcements The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. It does not appear on display pages. way to track and monetize these environmental benefits and compensate In 2023, the ITC will drop to 22%. These customers will need to figure out net metering credits with that supplier. Click below and use our process to receive multiple quotes instead: Connect with approved solar installers in your area. 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. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. 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. Ethics Reporting Associated with Communications with the IPA provides more information. Please contact our Customer Care Center if you have questions. 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. 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. The Future Energy Jobs Act (FEJA) took effect on June 1, 2017 and is designed to stimulate job creation in clean energy, assist the state in meeting its ambitious RPS goal by 2025, and promote energy efficiency. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. 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. Leigh Matthews is a sustainability expert and long time Vegan. Commonwealth Edison offers the top utility net metering program in Illinois. The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. The IPA is purchasing SRECs under a 15-year contract. An SREC is a REC that specifically comes from a solar system. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. Solar Ambassadors You can also check the current block status 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. Solar panels harness the energy from the sun and convert it into electricity. Inventory, GreenBuildingprojects, as well as regulatoryand protocol 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. solar calculator. Block groups are determined by utility companies and load zones. All Rights Reserved. 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. 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. Community Solar Subscription: An interest in a community renewable generation project expressed in kilowatts, which is sized primarily to offset part or all of the subscribers electricity usage. Captcha validation failed. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Illinois Solar Legislation 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. Learn more below. 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. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed sales @ mysolidbox.com The price per REC in Illinois is governed by the Illinois Power Agency. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. 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. 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. ATTENTION! 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. Municipal & County Resources 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. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. Since this exemption requires no action on your part and will save you a few thousand dollars over the life of your system, we think this is an outstanding solar benefit program. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. For a personalized assessment of the credits and rebates you may qualify for, launch our Part I: The initial application into the program which contains detailed information on the system and its location. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. 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. If you are not a robot then please try again. 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. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. Ethics Reporting Associated with Communications with the IPA. 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. 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. Aegis Construction Group is an Illinois state-approved solar energy system vendor. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. in the Illinois Shines program. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. Small projects can work with 3rd party aggregators if they All rights reserved. If you live in Illinois and are considering investing in a solar energy system for your home, heres some great news for you: your state offers myriad solar incentives to help you out. Visit energyequity.illinois.gov to learn more. Illinois SRECs help those solar system owners recoup their investment. 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. solar calculator. 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 best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 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. The current block rate for systems under 25kW is $75.29, but it won't be for long! Homeowners get one SREC for. 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 was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Your payback time is greatly reduced. Call us at (773) 812-3447 for more information on SRECs. Renewable Resources Programand via direct deposit (ACH) to a bankaccount of their choice. Still, you should plan to include the SREC value in your income and to pay taxes on them. Owners of solar systems can generate SRECs from the energy their solar panels produce. That means that every kilowatt-hour (kWh) you generate and send to the grid will offset one kWh you pull from the grid when your panels fail to produce enough energy for your home like at night or on cloudy days. 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. 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. 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. All rights reserved. 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. Welcome to the Illinois Power Agency (IPA) 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. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. Approved Vendor: An entity approved by the Program Administrator to submit project applications to the Adjustable Block Program and act as counterparty to the ABP contracts with the utilities. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Does Illinois have a solar sales tax exemption? Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications Are energy-efficient appliances worth it? 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. In most cases, home improvements that make your home more valuable also push your taxes higher since your taxes are based on your overall home value. Browse approved vendors here. However, CEJA altered the program from this cascading approach to an annual block approach. 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. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). owners for the countless benefits to Illinois.