This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Illinois SREC | Program Schedule | AEGIS Construction Group Details from past DG procurement events including winning bid prices are listed on the IPA website. The questions below will affect whether you save money. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. Owners sell their generated SRECs in Illinois for a 15-year contract into a market set up by the Illinois Power Agency (IPA). Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. 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. 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. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. ComEd's The IPA website is regularly updated with new information about the ABP. NT. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. 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 Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Dont forget about federal solar incentives! Take Action to Restore Illinois SREC Funding in Springfield With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. 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. RPS Timeline The program is made possible via the REC market in Illinois. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. Small projects can work with 3rd party aggregators if they represents the carbon or pollution avoided from the grid. Combined with our proprietary energy savings program we provide Illinois businesses . Click below and use our process to receive multiple quotes instead: Connect with approved solar installers in your area. Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC State Solar Renewable Energy Certificate Markets | US EPA The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications Illinois SREC incentives are managed under the Adjustable Block Program. 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. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). Policy Blog The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Its possible that in 2025 when the state reaches its RPS goal, some incentives will be abandoned or changed for the worse. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. 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. Updates to the SREC Program - October 2022 | Tick Tock Energy News All rights reserved. This program is set to open up January, 30th 2019. The Illinois Power Agency determines the cost of the block price value. Well break down the initial steps below. Additionally, the IRA provides increased credits for purchasing electric vehicles. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. Are energy-efficient appliances worth it? This guarantees clean energy savings. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. ATTENTION! Be sure to check with your aggregator of choice to confirm their participation. 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. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. See solar prices from qualified, local companies. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. 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. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. As such, taking advantage of this is a no-brainer. tradingand energy forecasting, development ofcarbon and renewable Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. Participating in Illinois Shines means you play an important role in helping the State meet its renewable energy goals. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. 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: $73.23 per SREC (applies to systems between 10 and 25 kilowatts AC) These prices will decline in "blocks" over time as more-and-more homeowners go solar. Otherwise, youre paying to produce energy for which the utility wont compensate you. To learn about any incentives you may qualify for, launch our The PUC mandates that all excess energy be credited at the full retail rate, which gives you the best chance of eliminating your utility bills. In addition to the federal and statewide solar perks mentioned above, there are two other local incentives that might be available to you, depending on where you live. All utility companies in Illinois are required to participate, including Ameren and ComEd. The second 10 years of SRECs is a fixed 35$ Illinois: Illinois is also a fixed amount, however SRECs can differ in price depending on when you go solar. Well outline the steps you need to take below. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Phase I of the portal was launched on January 31, 2023. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. the utility where system owners are credited for excess generation. 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. The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. General Program Information - Illinois Shines The state has a local SREC market where your credits can be sold. are valued for the total energy production from an array and therefore Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. Contact us at. As of the time of writing, each SREC in IL is worth approximately $72. This is a massive amount of money to put toward your system costs for minimal effort on your part. I want solar! 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. The program lasts for 15 years after you install your photovoltaic (PV) equipment. All rights reserved. Does Illinois have a solar sales tax exemption? 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. Absolutely! She is passionate about making clean energy more accessible to everyone and has worked in clean energy communications since graduating from the University of New Hampshire with a Bachelors in Business Administration. The Agency reserves the right to add additional categories of market activities as needed. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. 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. The current block rate for systems under 25kW is $75.29, but it won't be for long! These two tax incentives offered in Illinois can make going solar even more affordable: Worried about your property tax bills going up because of the value your solar system will add to your home? However, we dont expect this to appear in the near future. Solar House Learn more about the Illinois Solar Renewable Energy Credits Program. Federal and state incentives are offered to ComEd customers who choose to go solar. Events Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. The new SREC incentive will start at Block 5 or 4% lower than the last block. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. SRECs are a great way for businesses and nonprofits to generate savings in Illinois. This credit has been available since 2005, and it has gone through some changes since it was initially offered. These customers will need to figure out net metering credits with that supplier. 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 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. These credits work similarly to the federal solar tax credit. To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. Enter your zip code to find out what solar panels cost from installers near you. Please note this is an incentive which is subject to tax. This gives you a chance to use up any remaining credits for the year. Utility companies that need to meet the states RPS goals buy them to remain in compliance. 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. The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. REC prices are determined through the Adjustable Block Program. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). Illinois SRECs help those solar system owners recoup their investment. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). 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. This incentive can net you several hundred dollars each year, seriously reducing your solar payback period. 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. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. ComEd, one of ILs largest utility companies, provides rebates for commercial and industrial (C&I) customers to help decrease the out-of-pocket costs of installing solar. Speaking of Solar Blog, Homeowner Resources SREC Illinois - WGSI Solar Karsten is an editor and energy specialist focused on environmental, social and cultural development. Enrolling in this program is automatic, provided you choose a reputable installer to handle your PV panel installation. The best of EcoWatch right in your inbox. kWh) This opportunity is different than a net metering agreement with As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. 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 price drop between blocks is 4%. Her work on solar policy has been published in Canada's National Observer. Of that 25 percent, six percent must come from solar. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. represents the clean attributes of solar electricity. 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. See how much you can save with this solar incentive on the. The library zone below is used to load resources. Renew Your Membership Email. Copyright 2009-2023 EnergySage, Inc. Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. If you are looking for information on a program serving low-income and environmental justice communities, please visit the Illinois Solar for All program site. This is because the utility uses either April or October as the annual billing period end. You may be trying to access this site from a secured browser on the server. 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. 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. capacity. 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. Shouldnt solar be the same? 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). Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). payments will be made (to clients)pursuant to the rules of the 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. Inventory, GreenBuildingprojects, as well as regulatoryand protocol Renewable Energy Credit (REC) is a tradable, environmental asset that Phase I of the portal was launched on January 31, 2023. 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! For more information, seeenergy.gov. The IPA is purchasing SRECs under a 15-year contract. These Incentives Are Limited! Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. For a personalized assessment of the credits and rebates you may qualify for, launch our Starting on 9/1/22, new SREC applications are now accepted. SREC Calculator | The Acorn Group Pricing & Incentives: Guide To Solar Panels In Illinois 2022 - Forbes Home Register on EnergySage today to get quotes from local, reputable Illinois installers. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. 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. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 For the average residential system, this comes out to more than $10,000 in additional savings. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. 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. Are energy-efficient appliances worth it? All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. We should note that the federal solar tax credit rate is scheduled to drop over the next ten years, according to the schedule below: Following 2034, the program will no longer be available. Visit energyequity.illinois.gov to learn more. Illinois offers a property tax exemption for home solar installations. 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. Unfortunately, Illinois doesnt waive sales tax on PV equipment. 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. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Newsletter Sign Up, News & Announcements Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. All excess energy is credited at the full retail rate, which is the best-case scenario. Under the Adjustable Block Program, this system falls into the Small DG category. 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. But, most people wont qualify unless they already have solar installation experience. solar panel. What are the most efficient solar panels? Solar panels harness the energy from the sun and convert it into electricity. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Illinois Solar Legislation 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. While its an excellent opportunity for some Illinoisans to support the clean energy movement without laying out a ton of money, its not the most beneficial way to get solar. through their installer or contact the two preferred national companies