Enrolling in net energy metering is, thankfully, a simple and straightforward process. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. The price per REC in Illinois is governed by the Illinois Power Agency. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. Starting on 9/1/22, new SREC applications are now accepted. 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. In the sections below, well provide responses to some of the most common questions we get asked about solar perks and benefit programs in Illinois. How do I go about finding someone to install solar on my roof/property? 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. Individualized client accountsto report production and track SREC transactions, Residential and Commercial System Owners CorporateResidential & Small Commercial Developers, PAYMENT OPTIONSSREC Captcha validation failed. You may be trying to access this site from a secured browser on the server. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 This credit has been available since 2005, and it has gone through some changes since it was initially offered. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. 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. Unfortunately, Illinois doesnt waive sales tax on PV equipment. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. 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. 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 State operates on a fiscal year basis ending on June 30 th of each year. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). An SREC is a REC that specifically comes from a solar system. 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. 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. 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. Use the. Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. Utility companies that need to meet the states RPS goals buy them to remain in compliance. 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. 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. NEW Illinois SREC Prices for 2022-2023 Program Year. However, we dont expect this to appear in the near future. The Energy Policy Act of 2005 created the investment tax credit (ITC) for commercial and residential solar energy systems. With one credit earned each month, thats an average of $840 per year your system will earn you. For a personalized assessment of the credits and rebates you may qualify for, launch our The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. System Purchase >25 kW Sample Disclosure Form, https://www.energy.gov/eere/solar/articles/solar-photovoltaic-technology-basics. the utility where system owners are credited for excess generation. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. 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. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). 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. RPS Timeline Learn actionable tips for making each room in your home greener. 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. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. 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. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? 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. 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. 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. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. REC prices are determined through the Adjustable Block Program. The IPA is purchasing SRECs under a 15-year contract. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. Absolutely! Massachssets:Solar Systems under 25 KWs can collect SRECs for 10 years. Illinois SREC incentives are managed under the Adjustable Block Program. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. 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. With these incentives in the works, its a great time to start evaluating your solar options. Copyright 2023 LeafScore. sales @ mysolidbox.com 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. 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. 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. 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. If you buy electricity from a Retail Electric Supplier (e.g., through municipal aggregation or an individual contract), you must contact the supplier to enroll in net metering. Well list these incentives below and provide a brief explanation as to how they work. Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. solar calculator. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. 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. Participants in the Solar for All program can expect no upfront costs to install solar, no ongoing costs (i.e., free maintenance), and fees that wont exceed 50% of the value of energy generated by the system. Federal and state incentives are offered to ComEd customers who choose to go solar. The Plan describes the implementation of: The Adjustable Block Program (for photovoltaic distributed generation and community solar), also known as Illinois Shines, TheIllinois Solar for AllProgram(low-income residential distributed generation and community solar), Competitive procurements (for Renewable Energy Credits from new utility-scale wind, utility-scale photovoltaic, and brownfield photovoltaic projects), Large Customer Self-direct Program (for large electric customers to retire Renewable Energy Credits from new utility-scale wind and solar facilities and receive a bill credit reducing Renewable Portfolio Standard (RPS)-related bill charges). That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. 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. Business Memberships 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. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. 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. ATTENTION! Let us help you partner with the state of Illinois to make it a better environment for all, and a better vehicle for the money you'd be spending on electricity bills. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. Visit energyequity.illinois.gov to learn more. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. 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). Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. Be sure to check with your aggregator of choice to confirm their participation. Give us a call today to learn more from our experts and how this may potentially be a great opportunity for your solar power system. 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. Solar Professional Resources 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. Leigh Matthews, BA Hons, H.Dip. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. ILSFA-approved vendors are paid via the sales of the systems RECs. 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? These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. Illinois has a very favorable net metering program that helps bring down effective energy costs. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. 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. All of CSG's ABP customers will be receiving the following documents in . All Rights Reserved. The price drop between blocks is 4%. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. You are not guaranteed to save money unless your contract includes an explicit guarantee. You can also check the current block status here. Lets assume this is your solar panel system and it generates six SRECs a year. 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. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. Net energy metering makes it far more likely for residents to offset their utility bills entirely, helping to maximize their energy savings and reduce the amount of time it takes to pay off their equipment. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. Across the country, NEM is one of the most beneficial incentives available for solar customers. Thats because the summer months are usually the highest production months for home solar. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. Enter your zip code to see solar quotes near you. The new SREC incentive will start at Block 5 or 4% lower than the last block. The Illinois Shines or ABP Program uses a block structure to determine the value of an SREC. 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. Find the best price from solar installers in Illinois. 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. Well break down the initial steps below. Her work on solar policy has been published in Canada's National Observer. Ethics Reporting Associated with Communications with the IPA. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. represents the clean attributes of solar electricity. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. The credit was bumped up to $7,500 for some makes and models. 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. payments will be made (to clients)pursuant to the rules of the Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). 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. Homeowners get one SREC for. 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. 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. 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. New customers should review the ABP Program Brochure for general program information. 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. are not able to meet that guideline. 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. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. As of right now, there are no plans or pieces of legislation in the works to increase incentives in Illinois. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). Call us at (773) 812-3447 for more information on SRECs. You may host a new solar photovoltaic system on your rooftop or on your property, directly offsetting your energy usage; or. You can answer some questions yourself, while others can be answered by your installer or sales agent. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. All rights reserved. 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.