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 a massive amount of money to put toward your system costs for minimal effort on your part. 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. 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. Approved Vendor: An entity approved by the Program Administrator to submit project applications to the Adjustable Block Program and act as counterparty to the ABP contracts with the utilities. Please contact our Customer Care Center if you have questions. 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. You may be trying to access this site from a secured browser on the server. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. 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. 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. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. Solar House Copyright 2009-2023 EnergySage, Inc. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. 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. *Companies intend to be available for all procurement events. Illinois SRECs help those solar system owners recoup their investment. This means the price of SRECs declines as more solar energy systems are installed. These brokers will pay property owners for their SRECs on a quarterly basis over the course of five years, and sell the SRECs to the IPA during the specified procurement rounds. 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. (Same as Project). The state has a local SREC market where your credits can be sold. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. How do solar incentives affect the cost of solar panels in Illinois? It credits all solar customers for solar production, and those energy credits can then be sold for a profit. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. 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. 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. Learn more about the Illinois Solar Renewable Energy Credits Program. Please note this is an incentive which is subject to tax. 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. Still, we love programs like this because it makes renewable energy far more accessible. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. Browse approved vendors here. These Incentives Are Limited! We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Of that 25 percent, six percent must come from solar. 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. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). 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. With one credit earned each month, thats an average of $840 per year your system will earn you. 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. 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. Illinois has two main solar policies that will have the biggest financial impact on your investment: 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. 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. As such, taking advantage of this is a no-brainer. All Rights Reserved. 2023 Illinois Shines. Leigh Matthews is a sustainability expert and long time Vegan. 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. Starting on 9/1/22, new SREC applications are now accepted. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. 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. Ameren Illinois also offers net metering to residential customers. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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. Enrolling in this program is far more complicated than the other incentives discussed above. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. RPS Timeline 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. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Solar Ambassador Program Please note this is an incentive which is subject to tax. Do Illinois Solar Incentives Make It Affordable for Homeowners to Go Solar? How do you file for the federal tax credit in Illinois to get the full value? Dont forget about federal solar incentives! Currently, the full retail rate for net energy metering in Illinois means the program will help reduce your panel payback period, maximize your long-term savings and help reduce your monthly electricity bills for the entire time your system produces electricity. Owners of solar systems can generate SRECs from the energy their solar panels produce. 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. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. Policy Blog Ethics Reporting Associated with Communications with the IPA. RECs are a The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. When you have a solar system and are being billed for net metering, you are charged only for the net amount of energy you use during each billing period (i.e., the amount of energy we deliver to you minus the excess amount you send back to the smart grid). Also known as a photovoltaic community renewable generation project.. New customers should review the ABP Program Brochure for general program information. In Illinois, the credit averages out to $6,143. 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. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. 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. Its possible that in 2025 when the state reaches its RPS goal, some incentives will be abandoned or changed for the worse. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Policy Webinars, Solar Tour As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire.