illinois srec program

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. Aegis Construction Group is an Illinois state-approved solar energy system vendor. Donate You wouldnt buy a car without comparing a few options first. 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. Details from past DG procurement events including winning bid prices are listed on the IPA website. Events Community Solar Resources This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. 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 can also check the current block status here. How do you file for the federal tax credit in Illinois to get the full value? 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. 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. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. (Same as Project). Enter your zip code to find out what solar panels cost from installers near you. Learn More. This guarantees clean energy savings. Additionally, the IRA provides increased credits for purchasing electric vehicles. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Well list these incentives below and provide a brief explanation as to how they work. 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. This Act included significant changes to the Adjustable Block/Illinois Shines program. For the current guidebook for the Adjustable Block program, please click here. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. 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. Newsletter Sign Up, News & Announcements Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. 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. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Illinois has a very favorable net metering program that helps bring down effective energy costs. 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). 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. Karsten is an editor and energy specialist focused on environmental, social and cultural development. 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. The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. 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 Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. How do solar incentives affect the cost of solar panels in Illinois? If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. Please note this is an incentive which is subject to tax. Energy Solutions has been designated the Program Administrator. 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. 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. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. Please turn on JavaScript and try again. Still, you should plan to include the SREC value in your income and to pay taxes on them. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. 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. 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. Best of all, the program takes no time to enroll in, as your installer will set up automatic credit sales for you. The first step towards earning SRECs is to shop for a solar panel system. The Illinois SREC plus Federal Tax Credit makes solar very appealing. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. Owners of solar systems can generate SRECs from the energy their solar panels produce. Solar Ambassadors Please note this is an incentive which is subject to tax. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. 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. 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. 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. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). owners for the countless benefits to Illinois. Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. Enter your zip code to see solar quotes near you. Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. These Incentives Are Limited! Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. solar panel. 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. With one credit earned each month, thats an average of $840 per year your system will earn you. To learn about any incentives you may qualify for, launch our The portal is an online source designed to help connect clean energy companies withEquity Eligible Personslooking to work in the clean energy sector in Illinois. 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. Illinois SRECs help those solar system owners recoup their investment. Copyright 2009-2023 EnergySage, Inc. 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. 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. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. 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. 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. Renewable Resources For the latest info see our blog post. 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. 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. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). The price per REC in Illinois is governed by the Illinois Power Agency. You can answer some questions yourself, while others can be answered by your installer or sales agent. Block groups are determined by utility companies and load zones. For the average residential system, this comes out to more than $10,000 in additional savings. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. 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. 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. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. 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. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. 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. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. Top brands in 2023, REC pricing for the 2022-2023 program year. The State operates on a fiscal year basis ending on June 30 th of each 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. 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. ATTENTION! Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. 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. 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. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. REC prices are determined through the Adjustable Block Program. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. These customers will need to figure out net metering credits with that supplier. 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. The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. Its possible that this incentive will be discontinued again if funds run out. 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. 2023 Illinois Shines. Use the. Illinois may get a little less sun than average, but with above-average electricity costs, the Prairie State is a great place to go solar at home. The payout of the credits is calculated based on the homeowner's system . Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. Its possible that in 2025 when the state reaches its RPS goal, some incentives will be abandoned or changed for the worse. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. Participating in Illinois Shines means you play an important role in helping the State meet its renewable energy goals. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. More information about these programs can be found in the Administrative Code document above. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. 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. However, if your system is larger than that, you receive the payments over the course of five years. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker.