illinois srec program

Renewable Energy Credit (REC) is a tradable, environmental asset that Solar panels harness the energy from the sun and convert it into electricity. kWh) This opportunity is different than a net metering agreement with It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Solar Ambassador Program Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. 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. 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. 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! 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. Illinois SREC incentives are managed under the Adjustable Block Program. Solar projects serviced by Ameren Illinois, MidAmerican, Mt. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. 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 dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. NEW Illinois SREC Prices for 2022-2023 Program Year. 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. ATTENTION! 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. energy projects,emissions mitigation and management,GHG Emissions Please note this is an incentive which is subject to tax. Newsletter Sign Up, News & Announcements As such, it makes sense to try to shift your billing year to end just after your highest consumption months. The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. How do you file for the federal tax credit in Illinois to get the full value? All excess energy is credited at the full retail rate, which is the best-case scenario. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Even if you arent quite ready to make your solar purchase, these Illinois solar rebates and incentives are sure to make the case for why solar is a smart decision in the Land of Lincoln. REC prices can be found on page 180 of theFinal 2022 Long-Term Renewable Resources Procurement Plan released in August 2022. www.carbonsolutionsgroup.comToll free: (866) 499-1456Email: [email protected], SPECIALTYEnvironmental asset valuation, Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. Captcha validation failed. *Companies intend to be available for all procurement events. Just keep in mind that the credit rate will drop in 2032. The current block rate for systems under 25kW is $75.29, but it won't be for long! A The Illinois SREC plus Federal Tax Credit makes solar very appealing. What are the best rebates and incentives to take when converting to solar in Illinois? The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. In addition to the 30 percent federal solar tax credit (aka investment tax credit or ITC) for solar system owners, Illinois residents can receive additional financial benefits through the states solar renewable energy credits (SREC) market. 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. Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC solar panel. The best of EcoWatch right in your inbox. But, most people wont qualify unless they already have solar installation experience. 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. Your installer may also be a Designee or an Approved Vendor with the Program. Instead, approved vendors facilitate the application process and transaction. You wouldnt buy a car without comparing a few options first. 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. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. 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. Learn more below. Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. Illinois Solar Industry Data, RPS Legislation Her work on solar policy has been published in the Canadian National Observer. This may earn customers a rebate from the utility. Browse approved vendors here. Use the. The IPA is purchasing SRECs under a 15-year contract. Above, weve discussed all of the incentives available to Illinois property owners. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. REC prices are determined through the Adjustable Block Program. Want to find the best deal on solar in all of Illinois? Part I: The initial application into the program which contains detailed information on the system and its location. Find out how much you can receive when you register through the Illinois Shines Program with Acorn! Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. Office. It allows residents with household incomes below 80% of the median to get PV panels installed for no upfront costs. Community Solar Resources Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. 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. Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. 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. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Dont delay, enjoy the benefits of generating electricity from the sun! As a result, the federal credit is back up to 30% and got extended for ten years to 2034. In Illinois, all applications to the ABP program must be submitted by an approved vendor, meaning you wont work directly with your utility to receive your SREC payments. As of the time of writing, each SREC in IL is worth approximately $72. 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 Illinois SRECs help those solar system owners recoup their investment. At that time, youll be paid a lump sum for all of the credits you accrued. Be sure to check with your aggregator of choice to confirm their participation. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. 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. From there, each category is further divided by the size of the solar installation; if your installation produces less than 25 kW you fall into the Small DG category, whereas the Large DG, Traditional Community Solar, Community-Driven Community Solar, and Public School categories all range from 25 kW up to 5,000 kW. 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. The initial prices for most of northern Illinois are: Small systems: $72.97 per SREC (applies to systems smaller than 10 kilowatts AC) Large systems: $73.23 per SREC (applies to systems between 10 and 25 kilowatts AC) These prices will decline in "blocks" over time as more-and-more homeowners go solar. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. Business Memberships As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. The state has a local SREC market where your credits can be sold. These customers will need to figure out net metering credits with that supplier. Copyright 2009-2023 EnergySage, Inc. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. 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 would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. Lastly, each size range within a category corresponds to an SREC price. 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. 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. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. 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. The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. You can, however, take a partial credit the first year and roll over any leftover credit for up to five years. In his free time when he's not checking his own home's solar production he enjoys outdoor activities like hiking, mountain biking, skiing and rock climbing. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. are not able to meet that guideline. 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 program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. 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. 1.877.697.9269. 30% credit for systems installed between 2005 and 2022, 0% credit for systems installed in 2024 or later, 30% credit for systems installed between 2022 and 2032, 0% credit for systems installed after 2035, Put toward your solar loan as additional principal to reduce the payoff timeline, Use to recoup your cash investment in solar to expedite your. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. 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). Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. This field is for validation purposes and should be left unchanged. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. All of CSG's ABP customers will be receiving the following documents in . 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. way to track and monetize these environmental benefits and compensate Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. The IPA website is regularly updated with new information about the ABP. For a personalized assessment of the credits and rebates you may qualify for, launch our A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. Utility companies that need to meet the states RPS goals buy them to remain in compliance. Formore details on Net Metering, view our Frequently Asked Questions. 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. 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. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). 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. In Illinois, the credit averages out to $6,143. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. Starting on 9/1/22, new SREC applications are now accepted. Below is the states definition of a qualified person:A person who performs installations on behalf of the certificate holder and who has either satisfactorily completed at least five installations of a specific distributed generation technology or has completed at least one of five listed programs requiring lab or field work and received a certification of satisfactory completion. 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. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. The value of an SREC is determined by the market subject to supply and . If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. Otherwise, youre paying to produce energy for which the utility wont compensate you. 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. . As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. 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. Enter your zip code to find out what solar panels cost from installers near you. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. Is IL proposing increasing incentives for rooftop solar in the next 24 months? You can follow the steps below to ensure you get access to this outstanding benefit program. 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. through their installer or contact the two preferred national companies Educational Videos For solar energy customers, the April settlement date will likely make more sense than the October date. For the latest info see our blog post. Net metering ensures that you benefit from the full value of your solar panels and is a great way to balance out your electricity production and consumption, which do not always happen at the same time. Also known as a photovoltaic community renewable generation project.. Leigh Matthews, BA Hons, H.Dip. These Incentives Are Limited! Net metering measures the electricity your PV system produces and credits you for it on your electric bill. Phase I of the portal was launched on January 31, 2023. In Illinois you as a solar owner contract with an Approved Vendor (through your installer) to sell all the SRECs your system is expected to generate over the first 15 years. 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. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. Approved Vendors often work with Designees to manage various portions of solar system development. 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. capacity. The new SREC incentive will start at Block 5 or 4% lower than the last block. RECs The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. Distributed Generation Installer (DG Installer): A DG Installer is an entity that has received certification from the Illinois Commerce Commission to perform distributed generation installations. Her work on solar policy has been published in Canada's National Observer. All rights reserved. (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. 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. Illinois Solar Renewable Energy Credits help the state meet Renewable Portfolio Standards (RPS), which is a regulatory mandate that sets goals for generating a percentage of Illinois overall electricity from renewable energy. Over the 15 years the program lasts, youre expected to earn around $12,600 for your solar production. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. It takes just a few minutes to apply for when youre filing your taxes, and it provides an average value of over $6,000 in the Prairie State, provided you have a tax liability that allows you to take the full credit. 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. 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. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. The credit was bumped up to $7,500 for some makes and models. Commonwealth Edison offers the top utility net metering program in Illinois. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Learn More about the IPA's implementation activities under CEJA. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Concerned about climate change? On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. Distributed Generation (DG): A system which is located on-site, behind a customers meter, and used primarily to offset a single customers load; it cannot exceed 2,000 kW AC in size. Across the country, NEM is one of the most beneficial incentives available for solar customers. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. The program is made possible via the REC market in Illinois. Small projects can work with 3rd party aggregators if they