Illinois' New Incentive: Solar Renewable Energy Credits Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. In its place, Illinois state has set a threshold date of December 31st, 2024, or when new utility tariffs are set and approved (whichever is later). 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. 2023 Illinois Shines. 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. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. Illinois SRECs help those solar system owners recoup their investment. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. (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. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. All excess energy is credited at the full retail rate, which is the best-case scenario. The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. Illinois SRECs- What they are and how to model them in Aurora 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). Solar is hot in Illinois! . solar calculator. Does Illinois have a solar sales tax exemption? At that time, youll be paid a lump sum for all of the credits you accrued. 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. 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. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. Copyright 2023 LeafScore. Shouldnt solar be the same? ILSFA-approved vendors are paid via the sales of the systems RECs. This field is for validation purposes and should be left unchanged. 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. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. 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. Business Memberships Educational Videos What Do Illinoisans Need to Know About the Federal Solar Tax Credit? The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! Leigh Matthews, BA Hons, H.Dip. SRECS Illinois 2022 | Sunpalenergy Solar in Illinois 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. A s an example, if someone installs an 8kw sized solar system that produces 10,000 kWh of power annually, in Illinois, that customer would receive around $12,000. The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. Click here to access the Programs Community Solar Brochure. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. Updates to the SREC Program - October 2022 | Tick Tock Energy News Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. Net metering, also called net energy metering (NEM), is a billing policy that is mandated in many states by the local Public Utilities Commission (PUC). RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to 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! 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. ComEd's Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. RPS Timeline The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. represents the clean attributes of solar electricity. 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. 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. Additionally, the IRA provides increased credits for purchasing electric vehicles. 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. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. 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. 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. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. This credit has been available since 2005, and it has gone through some changes since it was initially offered. 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. 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. Renewable Energy Credit (REC) is a tradable, environmental asset that 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. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. Her work on solar policy has been published in Canada's National Observer. solar calculator. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. Illinois may not have the year-round sunshine of the Southwest, but it does have a great solar power market because of the available financial incentives. Your payback time is greatly reduced. The program is made possible via the REC market in Illinois. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. 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. Learn More about the IPA's implementation activities under CEJA. Do Illinois Solar Incentives Make It Affordable for Homeowners to Go Solar? As such, it makes sense to try to shift your billing year to end just after your highest consumption months. If that does happen, and the state doesnt set a new RPS goal, the likelihood is that net energy metering will either no longer be available or will drop to a less beneficial avoided-cost rate. Homeowners get one SREC for. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. 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. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. 2021 Illinois Solar Incentives - Solar One USA Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). Under the Adjustable Block Program, this system falls into the Small DG category. 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. The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. Renewable Resources Phone. 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. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed General Program Information - Illinois Shines 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. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. Community Solar Resources Illinois SREC | Program Schedule | AEGIS Construction Group Community Solar are typically large systems from a minimum size of 500 kW up to 2 MW (AC) that feed into the grid and generating power for subscribers. in the Illinois Shines program. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Energy Solutions has been designated the Program Administrator. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. This may earn customers a rebate from the utility. Phase I of the portal was launched on January 31, 2023. are not able to meet that guideline. 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. Learn More about the IPA's implementation activities under CEJA. Is IL proposing increasing incentives for rooftop solar in the next 24 months? Details from past DG procurement events including winning bid prices are listed on the IPA website. Illinois Shines SREC Program Gets New Funds for 2022 - Zenernet SRECTrade | SREC Markets | Illinois | IL 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. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. Learn more below. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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. capacity. 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. Which Tax Incentives Are The Best In Illinois? About - Illinois Shines Karsten is an editor and energy specialist focused on environmental, social and cultural development. 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. It looks like your browser does not have JavaScript enabled. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. A technical error has occurred. Combined with our proprietary energy savings program we provide Illinois businesses . Policy Webinars, Solar Tour Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. Well list these incentives below and provide a brief explanation as to how they work. 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. You can also check the current block status here. With one credit earned each month, thats an average of $840 per year your system will earn you. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. Find the best price from solar installers in Illinois. 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. What are the best rebates and incentives to take when converting to solar in Illinois? 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. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed.