The ILSFA program is an outstanding option for aspiring solar customers who cannot pay for their systems in cash or qualify for a loan or lease. Its worth mentioning that tax software like HR Block and TurboTax know about this incentive and typically ask you when you go to file if you installed renewable energy equipment. The credits you accrue roll over for an entire year, and you can choose from two different billing periods for your credits to get reset to zero annually. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. 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. solar panel. For the latest info see our blog post. 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. Its offered by the federal government, and it provides a massive credit to your income tax burden in the amount of 30% of your total system value. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. With one credit earned each month, thats an average of $840 per year your system will earn you. Federal and state incentives are offered to ComEd customers who choose to go solar. are not able to meet that guideline. 1.877.697.9269. This gives you a chance to use up any remaining credits for the year. This program is set to open up January, 30th 2019. are valued for the total energy production from an array and therefore At first, the credit amount was set to decrease based on the below schedule: In August of 2022, the federal government re-upped the credit amount and pushed back the expiration date of the program. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. RECs are certificates that are created when a renewable energy generating facility produces energy. Thanks to Illinois net metering policy, your utility will buy back any excess electricity your solar system produces. All utility companies in Illinois are required to participate, including Ameren and ComEd. 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. Net metering measures the electricity your PV system produces and credits you for it on your electric bill. 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. In 2023, the ITC will drop to 22%. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. Dont delay, enjoy the benefits of generating electricity from the sun! You can follow the steps below to ensure you get access to this outstanding benefit program. You can also check the current block status here. 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. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. The quotes would include current incentives available in your area. Her work on solar policy has been published in Canada's National Observer. 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. Renewable Resources Browse approved vendors here. Solar House This Act included significant changes to the Adjustable Block/Illinois Shines program. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Best of all, the program takes no time to enroll in, as your installer will set up automatic credit sales for you. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. Her work on solar policy has been published in the Canadian National Observer. How do I go about finding someone to install solar on my roof/property? Well also include the average savings afforded by each perk to help you prioritize which to take. 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. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. If you are deemed a qualified person as defined by Illinois Administrative Code 83 468.20, then yes! 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. 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. 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. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. See why here. Block groups are determined by utility companies and load zones. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. How do solar incentives affect the cost of solar panels in Illinois? Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. 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. 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. Solar Ambassadors The PUC mandates that all excess energy be credited at the full retail rate, which gives you the best chance of eliminating your utility bills. 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. Casey is an EnergySage writer covering solar, community solar, and sustainability. This field is for validation purposes and should be left unchanged. Some electric companies pay out two lump sums one at seven years and one at 15 years. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. Taxpayers can claim a Federal Income Tax Credit (FITC) of 30% for qualified expenditures on a solar system that provides electricity to their residence (owned and lived in by the taxpayer). The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 The Agency reserves the right to add additional categories of market activities as needed. 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. 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. You may be trying to access this site from a secured browser on the server. For the average residential system, this comes out to more than $10,000 in additional savings. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. Find the best price from solar installers in Illinois. 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. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. 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 IPA (Illinois Power Authority) has in the past bought SRECs in "procurement rounds". 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. 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. Ethics Reporting Associated with Communications with the IPA. Additionally, the IRA provides increased credits for purchasing electric vehicles. 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. Learn more about the Illinois Solar Renewable Energy Credits Program. Otherwise, youre paying to produce energy for which the utility wont compensate you. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. 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. These can be single projects or bundled together to meet that The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. 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. For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. 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. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. Illinois Power Agency2022. Policy Blog That means that every kilowatt-hour (kWh) you generate and send to the grid will offset one kWh you pull from the grid when your panels fail to produce enough energy for your home like at night or on cloudy days. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. Factor in a solid SREC market and the federal tax credit and some homeowners can quickly recoup nearly 50% of the cost of a home solar energy system. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! 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. 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. A system must be energized within 12 months (18 months for community solar projects) after this contract is approved. Please enable scripts and reload this page. Visit energyequity.illinois.gov to learn more. Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. Commonwealth Edison offers the top utility net metering program in Illinois. Having trouble deciding? We use cookies to ensure that we give you the best experience on our website. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. 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. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. Shouldnt solar be the same? The DG Project Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. NT. 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. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. RECs are a The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. With these incentives in the works, its a great time to start evaluating your solar options. Its possible that this incentive will be discontinued again if funds run out. 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. Small projects can work with 3rd party aggregators if they For a personalized assessment of the credits and rebates you may qualify for, launch our Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. However, CEJA altered the program from this cascading approach to an annual block approach. Still, we love programs like this because it makes renewable energy far more accessible. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Newsletter Sign Up, News & Announcements Speaking of Solar Blog, Homeowner Resources Carmel, Rural Electric Cooperatives, and Municipal Utilities located in MISO belong in Group A; Commonwealth Edison (ComEd), and Rural Electric Cooperatives and Municipal Utilities located in PJM belong in Group B. Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC The library zone below is used to load resources. 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. 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. 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. 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). As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. However, we dont expect this to appear in the near future. Owners of solar systems can generate SRECs from the energy their solar panels produce. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. Top brands in 2023, REC pricing for the 2022-2023 program year. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. 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. Dont forget about federal solar incentives! Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. 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. ISEA recommends system owners work IPA: Illinois Power Agency; the State Agency charged with administering the procurement of renewable energy resources to meet Illinois renewable energy portfolio standard, in addition to procuring electric power supply for eligible retail customers of electric utilities and other responsibilities. Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. 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! (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. Click here to access the Programs Community Solar Brochure. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. What are the best rebates and incentives to take when converting to solar in Illinois? Solar farms: what are they and how do they work? The program could get less beneficial in the future as it is in some other states, but right now, this is our pick for the second most crucial benefit program to take advantage of in Illinois. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed An SREC is a REC that specifically comes from a solar system. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. See solar prices from qualified, local companies. The payout of the credits is calculated based on the homeowner's system . The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. Utility companies that need to meet the states RPS goals buy them to remain in compliance. Learn more about the technology of photovoltaics from the US Department of Energy here: Consulting with an Approved Vendor is the best way to figure out if your home (either your roof or your property for ground mounted systems) would be a good fit for a solar system. This includes installers, marketing firms, lead generators, and sales organizations. 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. Given the tax rate in IL of 2.16% and the typical system value of $20,475, this exemption should save you approximately $8,845 in taxes over the life of your equipment.2. The Illinois SREC plus Federal Tax Credit makes solar very appealing. Massachssets:Solar Systems under 25 KWs can collect SRECs for 10 years. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. 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. Use the. As such, taking advantage of this is a no-brainer. What Illinois Residents Need To Know About SRECs? The overall Illinois Shines program address three areas: Distributed Generation, or DG for short refers to behind the meter solar systems intended to generate electricity for the home or building they are connected to. All of CSG's ABP customers will be receiving the following documents in . ComEd's The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. Solar Professional Resources 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). 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. 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. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. More information about these programs can be found in the Administrative Code document above. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. That means your taxes wont increase just because you convert to solar energy. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. 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. Enrolling in net energy metering is, thankfully, a simple and straightforward process. sales @ mysolidbox.com Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. 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. Thats because the summer months are usually the highest production months for home solar. Instead, approved vendors facilitate the application process and transaction. Individual Memberships Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. 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. Solar projects serviced by Ameren Illinois, MidAmerican, Mt. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. The credit was bumped up to $7,500 for some makes and models. 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. 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). REC prices are determined through the Adjustable Block 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). All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. Spots Are Already Being Taken By Illinois Homeowners. Part I: The initial application into the program which contains detailed information on the system and its location. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. You are not guaranteed to save money unless your contract includes an explicit guarantee. 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. Learn more below. 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. For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. 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. Usually, you can expect to receive your payment within a year of your systems completion.