One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). More information about these programs can be found in the Administrative Code document above. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. Karsten is an editor and energy specialist focused on environmental, social and cultural development. The best of EcoWatch right in your inbox. 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. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. 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. 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. 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 tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. 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. Her work on solar policy has been published in Canada's National Observer. updated article on the cost of solar panels, solar renewable energy certificate (SREC), rebates for commercial and industrial (C&I) customers, The Special Assessment for Solar Energy Systems, See the complete list of top solar installers in Illinois. 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. Office. Illinois Solar Legislation Absolutely! 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. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. In addition to FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. 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. Having trouble deciding? Learn more about the Illinois Solar Renewable Energy Credits Program. This field is for validation purposes and should be left unchanged. The quotes would include current incentives available in your area. All Rights Reserved. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. Block groups are determined by utility companies and load zones. 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. 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 credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. How much power will a solar system on my roof generate? These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. threshold. 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. The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. 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. 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. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? What Do Illinoisans Need to Know About the Federal Solar Tax Credit? Solar panels harness the energy from the sun and convert it into electricity. The Illinois Power Agency determines the cost of the block price value. NEW Illinois SREC Prices for 2022-2023 Program Year. 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. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Which Tax Incentives Are The Best In Illinois? Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. It helps pay off your system more quickly and maximizes your long-term energy savings. All rights reserved. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. With one credit earned each month, thats an average of $840 per year your system will earn you. Educational Videos You may be trying to access this site from a secured browser on the server. All utility companies in Illinois are required to participate, including Ameren and ComEd. 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. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. 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. For homeowners interested in solar at home but unsure about the upfront cost, check out Illinoiss Solar for All program. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. Browse approved vendors here. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. 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. Take Advantage of the Illinois SREC Program in Peoria IL Sun Collectors representatives understand you may have questions about the Illinois SREC program in Peoria IL. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. 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. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. 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. For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. All rights reserved. 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. NT. Illinois' SREC incentive: the Adjustable Block Program 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. 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). 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. 1.877.697.9269. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. Spots Are Already Being Taken By Illinois Homeowners. The Illinois SREC plus Federal Tax Credit makes solar very appealing. Specifically, Section 10-10 of the Illinois Property Tax Code states that homeowners who install solar can file an alternate valuation of their home improvements with the chief county assessment officer. In Illinois, the credit averages out to $6,143. 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. ATTENTION! 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. Illinois Shines is the brand name for the Adjustable Block Programa state-administered incentive program supporting the development of new solar energy generation in Illinois. Youll see far less personal benefit than if you purchased or financed panels. Across the country, NEM is one of the most beneficial incentives available for solar customers. The value of an SREC is determined by the market subject to supply and . There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. This could be your installer, a project developer, a broker, or an aggregator. ISEA recommends system owners work These can be single projects or bundled together to meet that cost of photovoltaic (PV) panels in Illinois, low-income households to convert to solar, Federal Solar Investment Tax Credit (ITC), Offers a credit to your tax liability for 30% of your entire system cost, Provides credits for all solar production, which you can sell for a profit, Varies based on the size of your system, your total energy production rate and more, Offers an accessible payment plan for low-income solar customers, Varies based on the size of your system, your average monthly electric bill and more, Waives all taxes on your property for the value added to your home by your PV system, Varies based on your system size, system installation cost and your local property tax rate, Provides credits for excess energy production, which can be used to pay down future bills, Varies based on your monthly utility bills and your average rate of solar production, Various rebate programs offered by local utility companies and municipalities, Varies based on the specific incentive, where you live and your utility provider. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. This gives you a chance to use up any remaining credits for the year. Of that 25 percent, six percent must come from solar. Leigh Matthews, BA Hons, H.Dip. 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. Contact us at. An SREC is a REC that specifically comes from a solar system. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. 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. 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. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. Solar Ambassador Program Additionally, the Illinois Shines Program has been a bit rocky in the past. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. through their installer or contact the two preferred national companies Renewable Energy Credit (REC) is a tradable, environmental asset that 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). 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. Its possible that this incentive will be discontinued again if funds run out. 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. This means the price of SRECs declines as more solar energy systems are installed. 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. Your installer may also be a Designee or an Approved Vendor with the Program. 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.