Be sure to check with your aggregator of choice to confirm their participation. Starting on 9/1/22, new SREC applications are now accepted. 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. 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. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. The value of an SREC is determined by the market subject to supply and . listed below: Carbon Solutions Group or SRECTrade. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. 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). The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Having trouble deciding? The questions below will affect whether you save money. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. Details from past DG procurement events including winning bid prices are listed on the IPA website. 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. the utility where system owners are credited for excess generation. REC Procurements Ethics Reporting Associated with Communications with the IPA provides more information. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. 423 W.800S.#A317 Salt Lake City, UT 84101. Enter your zip code to see solar quotes near you. Once you move forward with a solar company, theyll work with you and the state to ensure that your system is eligible for SRECs once its operational. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Programand via direct deposit (ACH) to a bankaccount of their choice. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. 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). The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. 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. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. Energy Solutions has been designated the Program Administrator. solar calculator. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. Her work on solar policy has been published in Canada's National Observer. Shouldnt solar be the same? Does Illinois have a solar sales tax exemption? 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. Additionally, the IRA provides increased credits for purchasing electric vehicles. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. 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. (1 REC = 1,000 All of CSG's ABP customers will be receiving the following documents in . Learn More. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Usually, you can expect to receive your payment within a year of your systems completion. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Instead, the total credit amount is applied to the income taxes you owe, which means you can only take the credit if you owe money on your taxes. Solar is hot in Illinois! The payout of the credits is calculated based on the homeowner's system . How does the Illinois SREC program work? That means your taxes wont increase just because you convert to solar energy. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. Visit energyequity.illinois.gov to learn more. Solar projects serviced by Ameren Illinois, MidAmerican, Mt. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Otherwise, youre paying to produce energy for which the utility wont compensate you. Learn more about what a REC is here: https://vimeo.com/113250210. Phone. Combined with our proprietary energy savings program we provide Illinois businesses . It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. Casey is an EnergySage writer covering solar, community solar, and sustainability. 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. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Visit energyequity.illinois.gov to learn more. You can also check the current block status here. The program is made possible via the REC market in Illinois. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. Federal and state incentives are offered to ComEd customers who choose to go solar. Learn More about the IPA's implementation activities under CEJA. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. REC prices are determined through the Adjustable Block Program. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. You may be trying to access this site from a secured browser on the server. In fact, Illinois has better incentives than most other states. All rights reserved. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront costs. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? Of that 25 percent, six percent must come from solar. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed 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. SRECs are a great way for businesses and nonprofits to generate savings in Illinois. Want to know more about the Illinois Solar Renewable Energy Credit Program? 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. 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. Enrolling in net energy metering is, thankfully, a simple and straightforward process. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). 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. Part I: The initial application into the program which contains detailed information on the system and its location. Homeowners get one SREC for. Please enable scripts and reload this page. 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. Over the 15 years the program lasts, youre expected to earn around $12,600 for your solar production. ISEA recommends system owners work Ameren Illinois also offers net metering to residential customers. You can follow the steps below to ensure you get access to this outstanding benefit program. Smart Inverters not only convert the direct current (DC) produced by your solar array into usable alternating current (AC), they can also communicate with the electrical grid and can even be operated remotely by a third-party. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. Please turn on JavaScript and try again. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. 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. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Find the best price from solar installers in Illinois. A technical error has occurred. Formore details on Net Metering, view our Frequently Asked Questions. Municipal & County Resources Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. 1.877.697.9269. Donate 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. These can be single projects or bundled together to meet that As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. Under the LTRRPP, the state will hold procurements for utility-scale wind and solar and will secure distributed generation and community solar REC contracts through the LTRRPP Adjustable Block Program (ABP). through their installer or contact the two preferred national companies 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. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. Solar farms: what are they and how do they work? Visit energyequity.illinois.gov to learn more. 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. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. 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. Home / Solar Energy Guide + FAQ / The 4 Biggest Benefits of Going Solar / Solar Rebates & Tax Incentives: What You Need to Know / Illinois Solar Incentives for 2023, Written by Leigh Matthews, BA Hons, H.Dip. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). For the latest info see our blog post. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! Use the. Under the Adjustable Block Program, this system falls into the Small DG category. 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. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. 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. However, we dont expect this to appear in the near future. 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. Lastly, we believe the SREC program in IL is a staple of the incentive spread available to you and one that you should definitely take part in. Illinois SRECs help those solar system owners recoup their investment. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. All credits are automatic, provided you have the right electric meter, and a new one will be provided for free even if you dont have a bidirectional meter. Renewable Resources Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). 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. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. Spots Are Already Being Taken By Illinois Homeowners. 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. In 2023, the ITC will drop to 22%. Whats The Near-Term Outlook For More Incentives In Illinois? Aegis Construction Group is an Illinois state-approved solar energy system vendor. If you only have time to file for one credit, we strongly suggest making it this one. Illinois may get a little less sun than average, but with above-average electricity costs, the Prairie State is a great place to go solar at home. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. The Agency reserves the right to add additional categories of market activities as needed. 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. The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Its possible that, as the Prairie State approaches or surpasses its RPS goal, the net energy metering credit rate will drop or go away entirely. 2023 Illinois Shines. 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. Please note this is an incentive which is subject to tax. Additionally, the Illinois Shines Program has been a bit rocky in the past. Net Metering: A provision in an electric utilitys tariff that allows for crediting a customers bill for all or some of the production of a distributed generation or community solar facility which has been exported to the distribution grid. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. 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! The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. Which Tax Incentives Are The Best In Illinois? Illinois SREC incentives are managed under the Adjustable Block Program. 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 For more information, seeenergy.gov. 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. 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. This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. 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. See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. Above, weve discussed all of the incentives available to Illinois property owners. Still, we think this is an outstanding solar perk and well worth the time it takes to apply.