For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). A list of Approved Vendors participating in Illinois Shines can be found. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. The value of an SREC is determined by the market subject to supply and . This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. owners for the countless benefits to Illinois. This is because the utility uses either April or October as the annual billing period end. Phone. With the passing of the Climate and Equitable Jobs Act, however, this 5% cap has been removed. 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. For solar energy customers, the April settlement date will likely make more sense than the October date. Illinois has a very favorable net metering program that helps bring down effective energy costs. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. How do I go about finding someone to install solar on my roof/property? Please enable scripts and reload this page. ILSFA-approved vendors are paid via the sales of the systems RECs. energy projects,emissions mitigation and management,GHG Emissions 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. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. through their installer or contact the two preferred national companies This guarantees clean energy savings. Solar is hot in Illinois! Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. 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. Renew Your Membership 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. Illinois Power Agency Also known as a photovoltaic community renewable generation project.. solar calculator. 2023 Illinois Shines. This Act included significant changes to the Adjustable Block/Illinois Shines 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. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. . Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. Policy Webinars, Solar Tour The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. 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. An SREC is a REC that specifically comes from a solar system. 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. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. This means the price of SRECs declines as more solar energy systems are installed. 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. SREC Calculator | The Acorn Group 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). It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. 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. Take Action to Restore Illinois SREC Funding in Springfield Aegis Construction Group is an Illinois state-approved solar energy system vendor. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. 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! You can also check the current block status here. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. Approved Vendors often work with Designees to manage various portions of solar system development. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. Participants in the Solar for All program can expect no upfront costs to install solar, no ongoing costs (i.e., free maintenance), and fees that wont exceed 50% of the value of energy generated by the system. 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. Just keep in mind that the credit rate will drop in 2032. Still, you should plan to include the SREC value in your income and to pay taxes on them. It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. Having trouble deciding? 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. 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. The initial prices for most of northern Illinois are: Small systems: $72.97 per SREC (applies to systems smaller than 10 kilowatts AC) Large systems: $73.23 per SREC (applies to systems between 10 and 25 kilowatts AC) These prices will decline in "blocks" over time as more-and-more homeowners go solar. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. 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. Dont delay, enjoy the benefits of generating electricity from the sun! Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Speaking of Solar Blog, Homeowner Resources You are not guaranteed to save money unless your contract includes an explicit guarantee. Are energy-efficient appliances worth it? 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. Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. 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. Solar Incentives & Rebates | ComEd - An Exelon Company Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. 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. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. Net metering, also called net energy metering (NEM), is a billing policy that is mandated in many states by the local Public Utilities Commission (PUC). What to know about Illinois' SREC program The best states for a home solar energy system aren't always the sunniest; those who benefit the most from installing a solar photovoltaic (PV) system for their home spend a lot of money on electricity and live in a state with good solar programs and incentives. Illinois Power Agency2022. 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. This is a massive amount of money to put toward your system costs for minimal effort on your part. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). Illinois offers a property tax exemption for home solar installations. 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). As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. 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. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! 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. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. Ethics Reporting Associated with Communications with the IPA. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 The new SREC incentive will start at Block 5 or 4% lower than the last block. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? Net metering ensures that you benefit from the full value of your solar panels and is a great way to balance out your electricity production and consumption, which do not always happen at the same time. What are the most efficient solar panels? Please turn on JavaScript and try again. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. 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. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). 1.877.697.9269. Enter your zip code to see solar quotes near you. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. But, most people wont qualify unless they already have solar installation experience. Some electric companies pay out two lump sums one at seven years and one at 15 years. Donate We use cookies to ensure that we give you the best experience on our website. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. ATTENTION! What new incentives are there in Illinois following the passing of the Inflation Reduction Act? 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. SRECTrade | SREC Markets This gives you a chance to use up any remaining credits for the year. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. Unfortunately, the program ran out of funding in late 2020.The availability of SREC funding was divided between "Group A," which is largely run by Ameren downstate The ILSFA program is an outstanding option for aspiring solar customers who cannot pay for their systems in cash or qualify for a loan or lease. Illinois may get a little less sun than average, but with above-average electricity costs, the Prairie State is a great place to go solar at home. Illinois Power Agency Energy Workforce Equity Portal The portal is an online source designed to help connect clean energy companies with Equity Eligible Persons looking to work in the clean energy sector in Illinois. REC prices can be found on page 180 of theFinal 2022 Long-Term Renewable Resources Procurement Plan released in August 2022. www.carbonsolutionsgroup.comToll free: (866) 499-1456Email: contact@carbonsolutionsgroup.com, SPECIALTYEnvironmental asset valuation, The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. The second 10 years of SRECs is a fixed 35$ Illinois: Illinois is also a fixed amount, however SRECs can differ in price depending on when you go solar. The average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. 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. Of that 25 percent, six percent must come from solar. Net energy metering is the second-best perk available to Illinois homeowners, in our opinion. Karsten is an editor and energy specialist focused on environmental, social and cultural development. 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). solar panel. Across the country, NEM is one of the most beneficial incentives available for solar customers. Her work on solar policy has been published in Canada's National Observer. The program is made possible via the REC market in Illinois. On May 16, 2022, the IPA announced that it will start accepting new applications to sell SRECs on September 1st, having closed the program in July 2022. If you are looking for information on a program serving low-income and environmental justice communities, please visit the Illinois Solar for All program site. Provided you expect to owe around $1,200 or more each year in taxes for the next five years, you should be able to take the entire credit or close to it. 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. Contact Tick Tock Energy to get a quote today! There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Illinois SRECs: Changes Coming to the Program in 2022 | EnergySage Spots Are Already Being Taken By Illinois Homeowners. This could be your installer, a project developer, a broker, or an aggregator. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications 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. That incentive is a dollar-for-dollar reduction in the income tax liability that a person or company claiming the credit would otherwise pay the federal government. The Illinois SREC plus Federal Tax Credit makes solar very appealing. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. 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. Learn More. Solar Panel Installation | Highland & Springfield, IL & Layton, UT You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. All excess energy is credited at the full retail rate, which is the best-case scenario. Ethics Reporting Associated with Communications with the IPA provides more information. 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. Copyright 2009-2023 EnergySage, Inc. are valued for the total energy production from an array and therefore If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Homeowners get one SREC for. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. Click here to access the Programs Community Solar Brochure. Shouldnt solar be the same? SRECTrade | SREC Markets | Illinois | IL 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. It does not appear on display pages. 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. If you are not a robot then please try again. Solar Surge Expected as SREC Incentive is Back! New - Central Illinois 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. ComEd's As such, taking advantage of this is a no-brainer. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. You can follow the steps below to ensure you get access to this outstanding benefit program. Renewable Energy Credit Prices for the Illinois Solar for All Program Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. The best of EcoWatch right in your inbox. 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. Part I: The initial application into the program which contains detailed information on the system and its location. way to track and monetize these environmental benefits and compensate All rights reserved. ICC: Illinois Commerce Commission (see 220 ILCS 5); the State Agency charged with regulating public utilities in Illinois, as well as approving aspects of the Adjustable Block Program. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) For the latest info see our blog post. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. Updates to the SREC Program - October 2022 | Tick Tock Energy News The Agency reserves the right to add additional categories of market activities as needed. payments will be made (to clients)pursuant to the rules of the On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. The payout of the credits is calculated based on the homeowner's system . Illinois SREC Program - YouTube For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. How does the Illinois SREC program work? The library zone below is used to load resources. Educational Videos Illinois Solar Incentives, Tax Credits & Rebates 2023 | EnergySage Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. capacity. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Casey is an EnergySage writer covering solar, community solar, and sustainability. This Act included significant changes to the Adjustable Block/Illinois Shines program. The price per REC in Illinois is governed by the Illinois Power Agency. 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). Still, we think this is an outstanding solar perk and well worth the time it takes to apply. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. 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. 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. 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. In 2023, the ITC will drop to 22%. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. See our Community Solar page for more info. 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. 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. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. Municipal & County Resources Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. Visit energyequity.illinois.gov to learn more. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. 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. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. IPA: Illinois Power Agency; the State Agency charged with administering the procurement of renewable energy resources to meet Illinois renewable energy portfolio standard, in addition to procuring electric power supply for eligible retail customers of electric utilities and other responsibilities. Renewable Resources sales @ mysolidbox.com