Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). See why here. SRECs are a great way for businesses and nonprofits to generate savings in Illinois. 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 excess energy is credited at the full retail rate, which is the best-case scenario. In this guide to solar benefits and incentive programs available in Illinois, youll learn: Our solar experts have sifted through hundreds of local governments and utility companies websites to find accurate information about current solar incentives in each state. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. At that time, youll be paid a lump sum for all of the credits you accrued. Instead, approved vendors facilitate the application process and transaction. Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. Visit energyequity.illinois.gov to learn more. 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). Enter your zip code to find out what solar panels cost from installers near you. 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 value of an SREC is determined by the market subject to supply and . 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. Illinois Power Agency2022. 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. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. 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. These Incentives Are Limited! 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. The quotes would include current incentives available in your area. 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. Although this is around 10% lower than the national average of $23,940, its still a massive price tag to convert to renewable energy and one that many Illinois property owners cannot afford. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. Federal and state incentives are offered to ComEd customers who choose to go solar. With the passing of the Climate and Equitable Jobs Act, however, this 5% cap has been removed. These customers will need to figure out net metering credits with that supplier. 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. This guarantees clean energy savings. Register for free to start comparing quotes. Its worth mentioning that tax software like HR Block and TurboTax know about this incentive and typically ask you when you go to file if you installed renewable energy equipment. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. Illinois SRECs help those solar system owners recoup their investment. Absolutely! RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Community Solar are typically large systems from a minimum size of 500 kW up to 2 MW (AC) that feed into the grid and generating power for subscribers. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. 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. Leigh Matthews, BA Hons, H.Dip. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. For the average Illinois resident, this solar program yields around $12,600 over the life of their system! On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. (Same as Project). The net energy metering program in Illinois is outstanding, even compared to similar programs in other states. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. 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. Enrolling in net energy metering is, thankfully, a simple and straightforward process. Site maintained byEnergy SolutionsAll Rights Reserved. Register on EnergySage today to get quotes from local, reputable Illinois installers. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. ATTENTION! For solar energy customers, the April settlement date will likely make more sense than the October date. 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. 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. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. way to track and monetize these environmental benefits and compensate With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. 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 Illinois SREC plus Federal Tax Credit makes solar very appealing. Shouldnt solar be the same? If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. 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. Once you determine your block group and the size of your installation (most home solar systems will qualify as a Small DG), you can use this chart from the Illinois Power Agency below to understand how much your SRECs might be worth. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. Leigh Matthews is a sustainability expert and long time Vegan. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront costs. 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. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. However, CEJA altered the program from this cascading approach to an annual block approach. For a personalized assessment of the credits and rebates you may qualify for, launch our This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. Contact Tick Tock Energy to get a quote today! 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. Above, weve discussed all of the incentives available to Illinois property owners. 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. Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. In 2023, the ITC will drop to 22%. Her work on solar policy has been published in the Canadian National Observer. 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. Click here to access the Programs Community Solar Brochure. A system must be energized within 12 months (18 months for community solar projects) after this contract is approved. All utility companies in Illinois are required to participate, including Ameren and ComEd. To understand how much power your system will generate, please work with your Approved Vendor, as each system is different. You are not guaranteed to save money unless your contract includes an explicit guarantee. Of that 25 percent, six percent must come from solar. RECs 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. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. Phase I of the portal was launched on January 31, 2023. 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. The kind of credits you get each month for surplus energy depends on the price you pay for energy from ComEd and whether you received the utilitys commercial distributed generation rebate (not currently available for residential arrays). That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. If you answer yes, the software will automatically direct you to fill in the required information. This may earn customers a rebate from the utility. Energy Solutions has been designated the Program Administrator. represents the carbon or pollution avoided from the grid. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. Which Tax Incentives Are The Best In Illinois? Given the tax rate in IL of 2.16% and the typical system value of $20,475, this exemption should save you approximately $8,845 in taxes over the life of your equipment.2. Aegis Construction Group is an Illinois state-approved solar energy system vendor. Solar farms: what are they and how do they work?
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