The Illinois SREC plus Federal Tax Credit makes solar very appealing. 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. 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. Shouldnt solar be the same? More information about these programs can be found in the Administrative Code document above. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. Solar Professional Resources Browse approved vendors here. represents the carbon or pollution avoided from the grid. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. Contact us at. It allows residents with household incomes below 80% of the median to get PV panels installed for no upfront costs. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. For reference, large DG systems are usually hosted on larger buildings or roofs, not residential properties. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). Enrolling in this program is far more complicated than the other incentives discussed above. 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. Commonwealth Edison offers the top utility net metering program in Illinois. Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. However, we dont expect this to appear in the near future. Give us a call at 309-316-3540 for more information and a free consultation on residential, commercial, or agricultural solar. Visit energyequity.illinois.gov to learn more. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. 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). The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Solar panels harness the energy from the sun and convert it into electricity. 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. How do you file for the federal tax credit in Illinois to get the full value? 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. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. 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. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. Previously, the incentive transitioned to a new block with a lower price once it reached its set amount of installed solar this resulted in fewer available incentive funds as more people installed solar. Solar farms: what are they and how do they work? The state has a local SREC market where your credits can be sold. 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. 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? Illinois offers a property tax exemption for home solar installations. The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. RECs are a Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. 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. Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. 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. 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. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) Which Tax Incentives Are The Best In Illinois? What are the most efficient solar panels? 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. Solar House Email. 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. Solar is hot in Illinois! However, CEJA altered the program from this cascading approach to an annual block approach. solar calculator helps you assess your rooftop solar potential by combining your historical usage data with solar data in your area to provide a personalized evaluation for your property, including any rebates and credits. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. RECs are certificates that are created when a renewable energy generating facility produces energy. In 2023, the ITC will drop to 22%. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. Learn More. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. 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. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. For the current guidebook for the Adjustable Block program, please click here. Dont forget about federal solar incentives! Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. Spots Are Already Being Taken By Illinois Homeowners. SRECs are a great way for businesses and nonprofits to generate savings in Illinois. Programand via direct deposit (ACH) to a bankaccount of their choice. Dont delay, enjoy the benefits of generating electricity from the sun! 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. 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. 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. Read ourprivacy policy. 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. 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. This may earn customers a rebate from the utility. If youre looking for a quote contact us today by phone or via our contact us page! 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). 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. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program.