illinois srec program
That means your taxes wont increase just because you convert to solar energy. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. 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. RECs way to track and monetize these environmental benefits and compensate Visit energyequity.illinois.gov to learn more. All rights reserved. However, if your system is larger than that, you receive the payments over the course of five years. Of that 25 percent, six percent must come from solar. Be sure to check with your aggregator of choice to confirm their participation. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). Also known as a photovoltaic community renewable generation project.. You are not guaranteed to save money unless your contract includes an explicit guarantee. To understand how much power your system will generate, please work with your Approved Vendor, as each system is different. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. . 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. are not able to meet that guideline. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). Enrolling in net energy metering is, thankfully, a simple and straightforward process. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. 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. 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. In some cases, ComEd customers actually purchase energy from another supplier. 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. 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. Are energy-efficient appliances worth it? 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 has a very favorable net metering program that helps bring down effective energy costs. (Same as System), Renewable Energy Credit (REC) or Solar Renewable Energy Credit (SREC): The environmental attributes represented by 1 MWh of electricity generated by a renewable generator. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Illinois SREC incentives are managed under the Adjustable Block Program. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). 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. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). 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. Thats because the summer months are usually the highest production months for home solar. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. Formore details on Net Metering, view our Frequently Asked Questions. Some electric companies pay out two lump sums one at seven years and one at 15 years. 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. The payout of the credits is calculated based on the homeowner's system . Solar is hot in Illinois! In the past, the Illinois Power Authority (IPA) bought SRECs in procurement rounds. Homeowners would typically sell their SRECs through an aggregator who acts as a broker between property owners and the state. Phase I of the portal was launched on January 31, 2023. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. Speaking of Solar Blog, Homeowner Resources Dan Simms is an experienced writer with a passion for renewable energy. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. 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. Educational Videos 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. Ameren Illinois also offers net metering to residential customers. Does Illinois have a solar sales tax exemption? 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. A list of Approved Vendors participating in Illinois Shines can be found. 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. 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. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Under the LTRRPP, the state will hold procurements for utility-scale wind and solar and will secure distributed generation and community solar REC contracts through the LTRRPP Adjustable Block Program (ABP). 423 W.800S.#A317 Salt Lake City, UT 84101. Its our hope that when the goal is met in 2025, the state sets a new one and maintains the current incentives to help reach it. Instead, approved vendors facilitate the application process and transaction. NEW Illinois SREC Prices for 2022-2023 Program Year. 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). A renewable energy certificate (REC) is a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). For the latest info see our blog post. 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. Just keep in mind that the credit rate will drop in 2032. Do Illinois Solar Incentives Make It Affordable for Homeowners to Go Solar? Dont delay, enjoy the benefits of generating electricity from the sun! This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). 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. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. The idea is to boost Illinois solar investments by increasing their monetary value in addition to offering savings on electricity bills. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. 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. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. kWh) This opportunity is different than a net metering agreement with Once you determine your block group and the size of your installation (most home solar systems will qualify as a Small DG), you can use this chart from the Illinois Power Agency below to understand how much your SRECs might be worth. If you have more questions or would like to see a quote for your home, farm or facility, our experts will be happy to discuss further! In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. solar calculator. Dont forget about federal solar incentives! Residential Solar Incentives (Small/14-unit buildings) ($/REC) To encourage Energy Sovereignty, an additional $10 per REC would be added for projects that result in ownership by the customer, such as through an early buyout of a lease or PPA. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Illinois Shines: Illinois is one of few states with a Solar Renewable Energy Credit (SREC) program to support the development of solar projects in the state. solar panel. Is IL proposing increasing incentives for rooftop solar in the next 24 months? This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. Want to know more about the Illinois Solar Renewable Energy Credit Program? Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. Ethics Reporting Associated with Communications with the IPA provides more information. The best of EcoWatch right in your inbox. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. 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. 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. 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. Please note this is an incentive which is subject to tax. 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. 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. Well outline the steps you need to take below. Visit energyequity.illinois.gov to learn more. Under the Adjustable Block Program, this system falls into the Small DG category. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. In fact, Illinois has better incentives than most other states. Details from past DG procurement events including winning bid prices are listed on the IPA website. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. These credits work similarly to the federal solar tax credit. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Business Memberships Register for free to start comparing quotes. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. The questions below will affect whether you save money. We use cookies to ensure that we give you the best experience on our website. You can answer some questions yourself, while others can be answered by your installer or sales agent. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. 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. 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 state has a local SREC market where your credits can be sold. Commonwealth Edison offers the top utility net metering program in Illinois. Which Tax Incentives Are The Best In Illinois? 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. The IPA website is regularly updated with new information about the ABP. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. This Act included significant changes to the Adjustable Block/Illinois Shines program. energy projects,emissions mitigation and management,GHG Emissions 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. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. (Same as Project). Your installer may also be a Designee or an Approved Vendor with the Program. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. It does not appear on display pages. Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC 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. Some homeowners can get solar installed for free and then enjoy lower utility payments and the warm fuzzy feeling of helping enhance the green energy grid. represents the carbon or pollution avoided from the grid. 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. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. 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. More information about these programs can be found in the Administrative Code document above. 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.
