Solar system owners can create SRECs from the energy produced by their solar panels and arrays. Unfortunately, Illinois doesnt waive sales tax on PV equipment. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. 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. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! Participating in Illinois Shines means you play an important role in helping the State meet its renewable energy goals. 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. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. Your installer may also be a Designee or an Approved Vendor with the Program. Visit energyequity.illinois.gov to learn more. Are energy-efficient appliances worth it? 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. With one credit earned each month, thats an average of $840 per year your system will earn you. Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. 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. Youll see far less personal benefit than if you purchased or financed panels. 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. 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. Absolutely! solar panel. Policy Webinars, Solar Tour (Same as Project). 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. Community Solar Resources The credits you accrue roll over for an entire year, and you can choose from two different billing periods for your credits to get reset to zero annually. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. In fact, Illinois has better incentives than most other states. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. Just keep in mind that the credit rate will drop in 2032. Renew Your Membership 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. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. Site maintained byEnergy SolutionsAll Rights Reserved. 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. Illinois has two main solar policies that will have the biggest financial impact on your investment: Under the Adjustable Block Program, also known as Illinois Shines, you can earn one solar renewable energy certificate (SREC) for each megawatt hour (MWh) of electricity your solar system produces over 15 years. Instead, approved vendors facilitate the application process and transaction. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. Learn More about the IPA's implementation activities under CEJA. More information about these programs can be found in the Administrative Code document above. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. Distributed Generation Installer (DG Installer): A DG Installer is an entity that has received certification from the Illinois Commerce Commission to perform distributed generation installations. This includes installers, marketing firms, lead generators, and sales organizations. For the latest info see our blog post. advisory with regard tocarbon emissions and renewable fuels, TRANSACTION MANAGEMENTOnline - after site upgrade is complete(expected by mid May), CLIENTSResidential and Commercial Installers Residential and Commercial System Owners MunicipalitiesUtilities in a variety of settingsand market conditions around the globe, PAYMENT OPTIONSUpfront and fixed payment options with market based pricing for existing systems, www.srectrade.comToll free: (877) 466-4606Direct: (415) 763-7732Email:clientservices@srectrade.com, SPECIALTY100% SREC transaction focus500+ MW across 35,000+ assets under management, TRANSACTION MANAGEMENTOnline bid submission and system registration for installers and system owners. Leigh Matthews, BA Hons, H.Dip. Distributed Generation (DG): A system which is located on-site, behind a customers meter, and used primarily to offset a single customers load; it cannot exceed 2,000 kW AC in size. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. 30% credit for systems installed between 2005 and 2022, 0% credit for systems installed in 2024 or later, 30% credit for systems installed between 2022 and 2032, 0% credit for systems installed after 2035, Put toward your solar loan as additional principal to reduce the payoff timeline, Use to recoup your cash investment in solar to expedite your. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. In Illinois, the credit averages out to $6,143. If you are not a robot then please try again. Massachssets:Solar Systems under 25 KWs can collect SRECs for 10 years. 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. Her work on solar policy has been published in the Canadian National Observer. 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. 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. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications kWh) This opportunity is different than a net metering agreement with 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. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. 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. You may be trying to access this site from a secured browser on the server. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. Be sure to check with your aggregator of choice to confirm their participation. The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. 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. Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. Contact us at. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? 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. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. See solar prices from qualified, local companies. 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. The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. What are the best rebates and incentives to take when converting to solar in Illinois? Utilities are only required to issue SREC payments quarterly, so the time it takes to receive your check varies. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. Owners of solar systems can generate SRECs from the energy their solar panels produce. Solar is hot in Illinois! The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Visit energyequity.illinois.gov to learn more. 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. Phase I of the portal was launched on January 31, 2023. listed below: Carbon Solutions Group or SRECTrade. For the current guidebook for the Adjustable Block program, please click here. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. Community Solar Subscriber: A person who (i) takes delivery service from an electric utility, municipal utility, or rural electric cooperative, and (ii) has a subscription of no less than 200 watts to a community renewable generation project that is located in the utilitys service area. 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 Act included significant changes to the Adjustable Block/Illinois Shines program. 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. Her work on solar policy has been published in Canada's National Observer. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. Usually, you can expect to receive your payment within a year of your systems completion. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. The state has a local SREC market where your credits can be sold. You are not guaranteed to save money unless your contract includes an explicit guarantee. Please turn on JavaScript and try again. The new SREC incentive will start at Block 5 or 4% lower than the last block. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. 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. 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. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. represents the clean attributes of solar electricity. 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. Aegis Construction Group is an Illinois state-approved solar energy system vendor. 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. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. 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. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. This Act included significant changes to the Adjustable Block/Illinois Shines program. are not able to meet that guideline. sales @ mysolidbox.com 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. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. 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. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. 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. 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. How do solar incentives affect the cost of solar panels in Illinois? The idea is to boost Illinois solar investments by increasing their monetary value in addition to offering savings on electricity bills.

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