Residential: 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. The Illinois SREC plus Federal Tax Credit makes solar very appealing. 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. Individual Memberships Renew Your Membership For the average residential system, this comes out to more than $10,000 in additional savings. Ethics Reporting Associated with Communications with the IPA provides more information. Newsletter Sign Up, News & Announcements All of CSG's ABP customers will be receiving the following documents in . Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. Is Illinois reducing incentives for rooftop solar in the next 24 months? The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. All rights reserved. the utility where system owners are credited for excess generation. It does not appear on display pages. As of the time of writing, each SREC in IL is worth approximately $72. You dont need to apply for anything or file any paperwork, and the savings are massive. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. 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. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications 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. Learn More about the IPA's implementation activities under CEJA. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront costs. 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. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. Above, weve discussed all of the incentives available to Illinois property owners. represents the carbon or pollution avoided from the grid. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. 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. Over the 15 years the program lasts, youre expected to earn around $12,600 for your solar production. Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. Top brands in 2023, REC pricing for the 2022-2023 program year. 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. 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. 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. Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. Under the Adjustable Block Program, this system falls into the Small DG category. 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. 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. A technical error has occurred. Concerned about climate change? Illinois Solar Incentives & Tax Credits for 2023 - LeafScore Dan Simms is an experienced writer with a passion for renewable energy. The State operates on a fiscal year basis ending on June 30 th of each year. Visit energyequity.illinois.gov to learn more. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). Federal and state incentives are offered to ComEd customers who choose to go solar. Contact us at. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. 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. 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. 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. Recent Posts. Find out how much you can receive when you register through the Illinois Shines Program with Acorn! The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Homeowners get one SREC for. Formore details on Net Metering, view our Frequently Asked Questions. 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 2023 LeafScore. The Illinois Power Agency determines the cost of the block price value. Illinois SREC | Program Schedule | AEGIS Construction Group Well list these incentives below and provide a brief explanation as to how they work. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. 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. However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. 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. 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. 423 W.800S.#A317 Salt Lake City, UT 84101. Illinois Solar Energy Association - Illinois Power Agency REC Procurements Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. 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. Solar Surge Expected as SREC Incentive is Back! New - Central Illinois 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. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Programand via direct deposit (ACH) to a bankaccount of their choice. This may earn customers a rebate from the utility. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. Read ourprivacy policy. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. 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. All excess energy is credited at the full retail rate, which is the best-case scenario. (Same as Project). Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. It allows residents with household incomes below 80% of the median to get PV panels installed for no upfront costs. 2023 Illinois Solar Incentives Guide (Tax Credits, Rebates) - EcoWatch 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. 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. These credits work similarly to the federal solar tax credit. Events Enter your zip code to see solar quotes near you. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. From there, each category is further divided by the size of the solar installation; if your installation produces less than 25 kW you fall into the Small DG category, whereas the Large DG, Traditional Community Solar, Community-Driven Community Solar, and Public School categories all range from 25 kW up to 5,000 kW. Previously, the incentive transitioned to a new block with a lower price once it reached its set amount of installed solar this resulted in fewer available incentive funds as more people installed solar. Solar Professional Resources Contact Tick Tock Energy to get a quote today! Her work on solar policy has been published in Canada's National Observer. For a personalized assessment of the credits and rebates you may qualify for, launch our This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. That means that every kilowatt-hour (kWh) you generate and send to the grid will offset one kWh you pull from the grid when your panels fail to produce enough energy for your home like at night or on cloudy days. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. 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. For the latest info see our blog post. 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. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! This is because the utility uses either April or October as the annual billing period end. 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. Email. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. What Illinois Residents Need To Know About SRECs? Pricing & Incentives: Guide To Solar Panels In Illinois 2022 - Forbes Home Enrolling in net energy metering is, thankfully, a simple and straightforward process. What You Need to Know About the Illinois Shines Program, What You Need to Know About the Illinois Solar for All Program, What You Need to Know About the Solar Property Tax Exemption in Illinois. RECs For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. Illinois SRECs help those solar system owners recoup their investment. 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 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. Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. 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. ComEd's For your system, the value is 7.1 cents/kWh produced, which is paid in year one. Illinois Solar Incentives, Tax Credits & Rebates 2023 | EnergySage 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. 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. 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. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). For solar energy customers, the April settlement date will likely make more sense than the October date. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. Want to find the best deal on solar in all of Illinois? For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. 1.877.697.9269. Does Illinois have a solar sales tax exemption? We recommend using the money earned via your credits to: Selling your SRECs on the local market is easier to do than you might think, as its automatic for most homeowners. in the Illinois Shines program. 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. 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. If you are not a robot then please try again. 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. 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. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. 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). Illinois Shines SREC Program Gets New Funds for 2022 - Zenernet This includes installers, marketing firms, lead generators, and sales organizations. 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. 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). 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. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. You can follow the steps below to ensure you get access to this outstanding benefit program. Illinois SRECs- What they are and how to model them in Aurora Energy Solutions has been designated the Program Administrator. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. 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. Still, you should plan to include the SREC value in your income and to pay taxes on them. Shouldnt solar be the same? On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). solar calculator. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. way to track and monetize these environmental benefits and compensate This is a massive amount of money to put toward your system costs for minimal effort on your part. 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. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. solar calculator. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. threshold. Copyright 2009-2023 EnergySage, Inc. represents the clean attributes of solar electricity. Visit energyequity.illinois.gov to learn more. 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. Are energy-efficient appliances worth it? 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. Starting on 9/1/22, new SREC applications are now accepted. The IPA is purchasing SRECs under a 15-year contract. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. Community Solar Resources The Agency reserves the right to add additional categories of market activities as needed. 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. Dont delay, enjoy the benefits of generating electricity from the sun! 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. You may be trying to access this site from a secured browser on the server. Phone. Illinois SREC Program Peoria IL I Sun Collectors Solar Panels 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.