NT. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. Renewable Resources The net energy metering program in Illinois is outstanding, even compared to similar programs in other states. Illinoiss net metering rules used to allow utilities to stop offering net metering once they reached 5% of total peak demand in the previous year. 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. ISEA recommends system owners work However, if your system is larger than that, you receive the payments over the course of five years. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. kWh) This opportunity is different than a net metering agreement with 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. You are not guaranteed to save money unless your contract includes an explicit guarantee. RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Please note this is an incentive which is subject to tax. You wouldnt buy a car without comparing a few options first. 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. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. 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. Illinois offers a property tax exemption for home solar installations. 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. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront costs. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. Under Illinois law, one SREC is credited for each 1,000 kilowatt hours (or one megawatt) or power created and fed back into the grid. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless youre a tax-exempt entity, in which case you might be eligible for a direct payment). The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. Ethics Reporting Associated with Communications with the IPA. These Incentives Are Limited! Net metering measures the electricity your PV system produces and credits you for it on your electric bill. Visit energyequity.illinois.gov to learn more. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. Across the country, NEM is one of the most beneficial incentives available for solar customers. 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). tradingand energy forecasting, development ofcarbon and renewable This credit has been available since 2005, and it has gone through some changes since it was initially offered. But, most people wont qualify unless they already have solar installation experience. 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. 1,000 kWh of solar electricity = 1 MWh of solar electricity = 1 SREC. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. Enrolling in net energy metering is, thankfully, a simple and straightforward process. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. What are the most efficient solar panels? 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. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. The IPA is purchasing SRECs under a 15-year contract. Read ourprivacy policy. 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. Solar farms: what are they and how do they work? 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. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. The best of EcoWatch right in your inbox. 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. Illinois Solar Legislation Please enable scripts and reload this page. Renewable Energy Credit (REC) is a tradable, environmental asset that Are energy-efficient appliances worth it? For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. Owners of solar systems can generate SRECs from the energy their solar panels produce. 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. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. Some homeowners can get solar installed for free and then enjoy lower utility payments and the warm fuzzy feeling of helping enhance the green energy grid. Dont delay, enjoy the benefits of generating electricity from the sun! A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. Energy Solutions has been designated the Program Administrator. 1.877.697.9269. For the current guidebook for the Adjustable Block program, please click here. Which Tax Incentives Are The Best In Illinois? How do solar incentives affect the cost of solar panels in Illinois? Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. 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. Captcha validation failed. Block groups are determined by utility companies and load zones. The new SREC incentive will start at Block 5 or 4% lower than the last block. Some electric companies pay out two lump sums one at seven years and one at 15 years. Illinois Power Agency2022. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Community Solar: A solar project which (1) is interconnected to an electric utility, a municipal utility, or a rural electric cooperative, (2) allows subscribers to pay for shares or some other interest in the project, receiving bill credits in exchange; and (3) does not exceed 2,000 kW AC in size. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. How do I go about finding someone to install solar on my roof/property? For more information, seeenergy.gov. ATTENTION! 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. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. Shouldnt solar be the same? This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. If you have more questions or would like to see a quote for your home, farm or facility, our experts will be happy to discuss further! Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. 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. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. This guarantees clean energy savings. energy projects,emissions mitigation and management,GHG Emissions 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. A renewable energy certificate (REC) is a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. 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. Provided you expect to owe around $1,200 or more each year in taxes for the next five years, you should be able to take the entire credit or close to it. 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. 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? Learn more below. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Alternatively, if you want to start out your process with an estimate of costs and savings associated with solar, try out our Solar Calculator. A list of Approved Vendors participating in Illinois Shines can be found. Utilities are only required to issue SREC payments quarterly, so the time it takes to receive your check varies. 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. These customers will need to figure out net metering credits with that supplier. are not able to meet that guideline. through their installer or contact the two preferred national companies If you are deemed a qualified person as defined by Illinois Administrative Code 83 468.20, then yes! A technical error has occurred. Well break down the initial steps below. Unfortunately, the program ran out of funding in late 2020.The availability of SREC funding was divided between "Group A," which is largely run by Ameren downstate You can also check the current block status here. (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. Community Solar Resources NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. Solar House At that time, youll be paid a lump sum for all of the credits you accrued. Its possible that this incentive will be discontinued again if funds run out. The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. 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. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. 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. 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. solar calculator. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). 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. Formore details on Net Metering, view our Frequently Asked Questions. You may participate as a subscriber to a community solar projecta large, centralized solar project for which you subscribe to a share of its output. The Illinois SREC plus Federal Tax Credit makes solar very appealing. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). 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. As of the time of writing, each SREC in IL is worth approximately $72. Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. Absolutely! Illinois SRECs help those solar system owners recoup their investment. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. Thats because the summer months are usually the highest production months for home solar. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. Learn More. Donate Learn more about what a REC is here: https://vimeo.com/113250210. 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. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Above, weve discussed all of the incentives available to Illinois property owners. Her work on solar policy has been published in the Canadian National Observer. 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. This program is set to open up January, 30th 2019. Small projects can work with 3rd party aggregators if they You may be trying to access this site from a secured browser on the server. 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.