The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Small projects can work with 3rd party aggregators if they On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. 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. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. Instead, approved vendors facilitate the application process and transaction. 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. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. Enter your zip code to find out what solar panels cost from installers near you. However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. Policy Webinars, Solar Tour See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. 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. Be sure to check with your aggregator of choice to confirm their participation. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. With the passing of the Climate and Equitable Jobs Act, however, this 5% cap has been removed. 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. Learn actionable tips for making each room in your home greener. Importantly, the pricing of your SRECs is fixed, and when you receive the incentive depends on the size of your solar panel system; if youre installing a system with an inverter size of less than 10 kW, you receive your SREC incentive as an upfront lump-sum payment. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. Copyright 2009-2023 EnergySage, Inc. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed 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. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. 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. Business Memberships That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. 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. A technical error has occurred. But, most people wont qualify unless they already have solar installation experience. You may participate as a subscriber to a community solar projecta large, centralized solar project for which you subscribe to a share of its output. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. Want to find the best deal on solar in all of Illinois? However, if your system is larger than that, you receive the payments over the course of five years. REC prices are determined through the Adjustable Block Program. 423 W.800S.#A317 Salt Lake City, UT 84101. 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. Do Illinois Solar Incentives Make It Affordable for Homeowners to Go Solar? Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. 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. The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). REC prices are determined through the Adjustable Block Program. The best of EcoWatch right in your inbox. 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. The IPA (Illinois Power Authority) has in the past bought SRECs in "procurement rounds". Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. Please note this is an incentive which is subject to tax. (Same as Project). In fact, Illinois has better incentives than most other states. 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. Solar House 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. 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. The average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. It guarantees that you are credited for all excess power your system produces that isnt used in your home and is instead sent to the grid. You dont need to apply for anything or file any paperwork, and the savings are massive. Below is the states definition of a qualified person:A person who performs installations on behalf of the certificate holder and who has either satisfactorily completed at least five installations of a specific distributed generation technology or has completed at least one of five listed programs requiring lab or field work and received a certification of satisfactory completion. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. 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. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. 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. Lets assume this is your solar panel system and it generates six SRECs a year. 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. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). Policy Blog solar panel. 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. The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. Dont delay, enjoy the benefits of generating electricity from the sun! Some electric companies pay out two lump sums one at seven years and one at 15 years. The Agency reserves the right to add additional categories of market activities as needed. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. You can follow the steps below to ensure you get access to this outstanding benefit program. In some cases, ComEd customers actually purchase energy from another supplier. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. Contact us at. Learn more about the Illinois Solar Renewable Energy Credits Program. The IPA is purchasing SRECs under a 15-year contract. This is a massive amount of money to put toward your system costs for minimal effort on your part. 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. Ethics Reporting Associated with Communications with the IPA. 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. ComEd's 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. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. An SREC is a REC that specifically comes from a solar system. Just keep in mind that the credit rate will drop in 2032. More information about these programs can be found in the Administrative Code document above. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. Above, weve discussed all of the incentives available to Illinois property owners. New customers should review the ABP Program Brochure for general program information. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. This Act included significant changes to the Adjustable Block/Illinois Shines program. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. The IPA website is regularly updated with new information about the ABP. To learn about any incentives you may qualify for, launch our The Program provides payments in exchange for 15 years of Renewable Energy Credits (RECs) from a utility contracted to buy the RECs from your Approved Vendor. Learn more about what a REC is here: https://vimeo.com/113250210. Want to know more about the Illinois Solar Renewable Energy Credit Program? You can answer some questions yourself, while others can be answered by your installer or sales agent. Register on EnergySage today to get quotes from local, reputable Illinois installers. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). Contact Tick Tock Energy to get a quote today! If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. However, CEJA altered the program from this cascading approach to an annual block approach. 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. This is where SRECs come in a utility can claim the electricity produced from your home solar system to help meet RPS requirements through the purchase of SRECs. 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. This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. 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). Illinois SRECs help those solar system owners recoup their investment. 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 calculator. Are energy-efficient appliances worth it? Your installer may also be a Designee or an Approved Vendor with the Program. Learn more about the technology of photovoltaics from the US Department of Energy here: Consulting with an Approved Vendor is the best way to figure out if your home (either your roof or your property for ground mounted systems) would be a good fit for a solar system. solar calculator. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. 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. 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. Renew Your Membership 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. Top brands in 2023, REC pricing for the 2022-2023 program year. 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 federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. 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. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Ethics Reporting Associated with Communications with the IPA provides more information. Illinois offers a property tax exemption for home solar installations. 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. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. The good news is that Illinois is home to quite a few incentive programs that make PV equipment more affordable and maximize your long-term solar savings. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. through their installer or contact the two preferred national companies As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. What are the most efficient solar panels? This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? 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). 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. Aegis Construction Group is an Illinois state-approved solar energy system vendor. 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. These two tax incentives offered in Illinois can make going solar even more affordable: Worried about your property tax bills going up because of the value your solar system will add to your home? How do I go about finding someone to install solar on my roof/property? Site maintained byEnergy SolutionsAll Rights Reserved. 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. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. Well break down the initial steps below. 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. It does not appear on display pages. Copyright 2009-2023 EnergySage, Inc. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. Please note this is an incentive which is subject to tax. Its possible that this incentive will be discontinued again if funds run out. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. 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. The value of an SREC is determined by the market subject to supply and . Dan Simms is an experienced writer with a passion for renewable energy. Speaking of Solar Blog, Homeowner Resources ILSFA-approved vendors are paid via the sales of the systems RECs. In 2023, the ITC will drop to 22%. Commonwealth Edison offers the top utility net metering program in Illinois. Shouldnt solar be the same? And, if you send more energy to the grid than we deliver, you can receive credits on your bill. The overall Illinois Shines program address three areas: Distributed Generation, or DG for short refers to behind the meter solar systems intended to generate electricity for the home or building they are connected to. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. Block groups are determined by utility companies and load zones. For the latest info see our blog post. All excess energy is credited at the full retail rate, which is the best-case scenario. Find out how much you can receive when you register through the Illinois Shines Program with Acorn! 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. capacity. The quotes would include current incentives available in your area. 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. For the current guidebook for the Adjustable Block program, please click here. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. Read ourprivacy policy. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. These can be single projects or bundled together to meet that These customers will need to figure out net metering credits with that supplier. Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. NT. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. 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. Illinois Shines is part of the state's plan to hit its ambitious Renewable Portfolio Standard goal of producing 50% of its energy from renewable sources by the year 2040. 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. 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.