The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. NEW Illinois SREC Prices for 2022-2023 Program Year. 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. 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. SREC Illinois - WGSI Solar All rights reserved. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. Details from past DG procurement events including winning bid prices are listed on the IPA website. The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. 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 portal is an online source designed to help connect clean energy companies withEquity Eligible Personslooking to work in the clean energy sector in Illinois. Across the country, NEM is one of the most beneficial incentives available for solar customers. Wall-Mounted Solar Awnings & Solar Patios, Interconnection & Netmetering Considerations, Small Distributed Generation (DG) from 0 to 25 kW (AC), Large Distributed Generation (DG) from >25 kW up to 2,000 kW (AC). Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. 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. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. However, CEJA altered the program from this cascading approach to an annual block approach. Solar farms: what are they and how do they work? SRECTrade | SREC Markets Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. are valued for the total energy production from an array and therefore 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. The IPA (Illinois Power Authority) has in the past bought SRECs in "procurement rounds". This program is set to open up January, 30th 2019. 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. The Illinois SREC plus Federal Tax Credit makes solar very appealing. See why here. Part I approval results in an ICC approved contract with one of the distribution utilities. This is a perk that helps keep down the upfront cost of solar systems to make them a bit more accessible, so it would be a great addition to Illinoiss collection of benefit programs. Leigh Matthews, BA Hons, H.Dip. 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. Please note this is an incentive which is subject to tax. 2023 Illinois Solar Incentives Guide (Tax Credits, Rebates) - EcoWatch Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. All applications to the Adjustable Block Program must be submitted by an approved vendor, which includes solar installers, project developers, and SREC brokers and aggregators. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. ILSFA-approved vendors are paid via the sales of the systems RECs. It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Solar House 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. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. Dont forget about federal solar incentives! This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. That means your taxes wont increase just because you convert to solar energy. 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. 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. About - Illinois Shines 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. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. 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. The price per REC in Illinois is governed by the Illinois Power Agency. These Incentives Are Limited! Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. If you live in Illinois and are considering investing in a solar energy system for your home, heres some great news for you: your state offers myriad solar incentives to help you out. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. Commercial: 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. Renewable Energy Credit (REC) is a tradable, environmental asset that illinois srec program - mysolidbox.com Use the. Illinois Shines SREC Program Gets New Funds for 2022 - Zenernet 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 Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. Unfortunately, Illinois doesnt waive sales tax on PV equipment. Ethics Reporting Associated with Communications with the IPA. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Community Solar Resources You dont need to apply for anything or file any paperwork, and the savings are massive. Illinois' New Incentive: Solar Renewable Energy Credits Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. 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. 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. 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. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. 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. Is my home or property a good fit for a solar system? REC Procurements As a result, the federal credit is back up to 30% and got extended for ten years to 2034. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). The program lasts for 15 years after you install your photovoltaic (PV) equipment. Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? Find out how much you can receive when you register through the Illinois Shines Program with Acorn! Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. Participating in Illinois Shines means you play an important role in helping the State meet its renewable energy goals. Illinois Solar Incentives, Tax Credits & Rebates 2023 | EnergySage Summit Solar - Illinois Your installer may also be a Designee or an Approved Vendor with the Program. 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. Homeowners get one SREC for. Block groups are determined by utility companies and load zones. Captcha validation failed. 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. Illinois Solar Legislation Ethics Reporting Associated with Communications with the IPA provides more information. Email. Concerned about climate change? ISEA recommends system owners work All excess energy is credited at the full retail rate, which is the best-case scenario. The Illinois Power Agency determines the cost of the block price value. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. solar calculator. The quotes would include current incentives available in your area. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Register for free to start comparing quotes. 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. 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. All rights reserved. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. Unfortunately, the program ran out of funding in late 2020.The availability of SREC funding was divided between "Group A," which is largely run by Ameren downstate For the average residential system, this comes out to more than $10,000 in additional savings. This incentive can net you several hundred dollars each year, seriously reducing your solar payback period. owners for the countless benefits to Illinois. Casey is an EnergySage writer covering solar, community solar, and sustainability. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. Types of Approved Vendors Distributed Generation Installer ("DG Installer"): A DG Installer also has received certification from the Illinois Commerce Commission ("ICC") to perform distributed generation installations. 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. 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. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. If you go solar while theres still capacity for the 2022-2023 program year, your SRECs would sell for $78.51 each and you would earn roughly $7,066 in SREC sales! 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. 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. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless youre a tax-exempt entity, in which case you might be eligible for a direct payment). Speaking of Solar Blog, Homeowner Resources Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. 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. This is a massive amount of money to put toward your system costs for minimal effort on your part. RPS Timeline Visit energyequity.illinois.gov to learn more.