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. Lastly, each size range within a category corresponds to an SREC price. Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. Like homeowners, small businesses and nonprofits can apply to the Illinois Shines program through an approved vendor. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. In the sections below, well provide responses to some of the most common questions we get asked about solar perks and benefit programs in Illinois. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. This means the price of SRECs declines as more solar energy systems are installed. If you answer yes, the software will automatically direct you to fill in the required information. This is a massive amount of money to put toward your system costs for minimal effort on your part. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. But, most people wont qualify unless they already have solar installation experience. It does not appear on display pages. What are the most efficient solar panels? Recent Posts. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. 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. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Well outline the steps you need to take below. However, we dont expect this to appear in the near future. Of that 25 percent, six percent must come from solar. 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. Policy Blog 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. The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. SRECS Illinois 2022 | Sunpalenergy Solar in Illinois Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. The payout of the credits is calculated based on the homeowner's system . You can, however, take a partial credit the first year and roll over any leftover credit for up to five years. However, CEJA altered the program from this cascading approach to an annual block approach. New customers should review the ABP Program Brochure for general program information. Browse approved vendors here. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. Our experts will be happy to discuss this exciting incentive and make sure you understand all the rewarding benefits Illinois SRECs can potentially bring to your project. This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. Usually, you can expect to receive your payment within a year of your systems completion. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. Visit energyequity.illinois.gov to learn more. The State operates on a fiscal year basis ending on June 30 th of each year. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. 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). An SREC is a REC that specifically comes from a solar system. See why here. 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. Learn more about the Illinois Solar Renewable Energy Credits Program. Solar Panel Installation | Highland & Springfield, IL & Layton, UT Solar Incentives & Rebates | ComEd - An Exelon Company Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) In our opinion, the federal credit is the best and most valuable incentive available in Illinois. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Illinois SREC | Program Schedule | AEGIS Construction Group The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. are not able to meet that guideline. REC prices are determined through the Adjustable Block Program. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. (1 REC = 1,000 represents the clean attributes of solar electricity. 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. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. Solar Ambassadors The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. 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). This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. Do Illinois Solar Incentives Make It Affordable for Homeowners to Go Solar? Illinois SRECs: Changes Coming to the Program in 2022 | EnergySage sales @ mysolidbox.com Policy Webinars, Solar Tour If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. threshold. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. Illinois' New Incentive: Solar Renewable Energy Credits 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. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. 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. Commonwealth Edison offers the top utility net metering program in Illinois. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. More information about these programs can be found in the Administrative Code document above. illinois srec program - mysolidbox.com Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. 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. Take Action to Restore Illinois SREC Funding in Springfield 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. Between the 30% federal tax credit and the SREC incentive, up to 50 to 60% of your solar system or more could be paid for from these two incentives alone. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. With the passing of the Climate and Equitable Jobs Act, however, this 5% cap has been removed. The quotes would include current incentives available in your area. For size comparison, a 1,000 kW, or 1 MegaWatt (MW) community solar plant would require around 3 to 5 acres and 2 MW potentially up to 10 acres. 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. are valued for the total energy production from an array and therefore The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. 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. As such, taking advantage of this is a no-brainer. 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. In addition to the federal and statewide solar perks mentioned above, there are two other local incentives that might be available to you, depending on where you live. 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). Illinois Power Agency 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. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Use the. 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. 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. You may be trying to access this site from a secured browser on the server. As of the time of writing, each SREC in IL is worth approximately $72. 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. 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. Donate 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 maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. 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. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. How does the Illinois SREC program work? Some electric companies pay out two lump sums one at seven years and one at 15 years. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. For homeowners interested in solar at home but unsure about the upfront cost, check out Illinoiss Solar for All program. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. 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). Captcha validation failed. The best states for a home solar energy system arent 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. Your installer may also be a Designee or an Approved Vendor with the 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. For the current guidebook for the Adjustable Block program, please click here. Are energy-efficient appliances worth it? 2023 Illinois Shines. Currently, the full retail rate for net energy metering in Illinois means the program will help reduce your panel payback period, maximize your long-term savings and help reduce your monthly electricity bills for the entire time your system produces electricity. Is IL proposing increasing incentives for rooftop solar in the next 24 months? The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. We use cookies to ensure that we give you the best experience on our website. Want to know more about the Illinois Solar Renewable Energy Credit Program? 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. Karsten is an editor and energy specialist focused on environmental, social and cultural development. through their installer or contact the two preferred national companies IPA Announces Initial Illinois SREC Prices Certasun RECs Phase I of the portal was launched on January 31, 2023. solar calculator helps you assess your rooftop solar potential by combining your historical usage data with solar data in your area to provide a personalized evaluation for your property, including any rebates and credits. 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. . way to track and monetize these environmental benefits and compensate Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. On September 15, 2021, Governor Pritzker signed the Climate & Equitable Jobs Act, which includes new funding for the Illinois Shines SREC program, a massive incentive for solar buyers in Illinois. These serve to help the state reach its Renewable Portfolio Standard (RPS) goal of producing 25% of its energy via clean sources by 2026.1. This includes installers, marketing firms, lead generators, and sales organizations. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. At that time, youll be paid a lump sum for all of the credits you accrued. It looks like your browser does not have JavaScript enabled. 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. 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. 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. 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. A technical error has occurred. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. 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. 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. See how much you can save with this solar incentive on the. 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 state has a local SREC market where your credits can be sold. Learn More. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! 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. All utility companies in Illinois are required to participate, including Ameren and ComEd. Illinois Adjustable Block Program Overview - Carbon Solutions SREC Trading 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. 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. 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. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. In fact, Illinois has better incentives than most other states. Unfortunately, Illinois doesnt waive sales tax on PV equipment. 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! Is Illinois reducing incentives for rooftop solar in the next 24 months? 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. This Act included significant changes to the Adjustable Block/Illinois Shines program. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. This is a perk that helps keep down the upfront cost of solar systems to make them a bit more accessible, so it would be a great addition to Illinoiss collection of benefit programs. The Illinois SREC plus Federal Tax Credit makes solar very appealing. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront 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). For the average Illinois resident, this solar program yields around $12,600 over the life of their system! Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. Read ourprivacy policy. Its possible that in 2025 when the state reaches its RPS goal, some incentives will be abandoned or changed for the worse. Illinois Solar Legislation Learn More about the IPA's implementation activities under CEJA. Contact us at. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop.