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. Leigh Matthews, BA Hons, H.Dip. Approved Vendor Info - Illinois Shines through their installer or contact the two preferred national companies 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. (1 REC = 1,000 Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. Program Resources - Illinois Shines Program Resources On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act ( Public Act 102-0662 ). Approved Vendors often work with Designees to manage various portions of solar system development. Energy Solutions has been designated the Program Administrator. 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. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. Welcome to the Illinois Power Agency (IPA) 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. With the passing of the Climate and Equitable Jobs Act, however, this 5% cap has been removed. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. Enrolling in this program is far more complicated than the other incentives discussed above. The Ultimate SREC Guide - Those Solar Guys For solar energy customers, the April settlement date will likely make more sense than the October date. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. In Illinois you as a solar owner contract with an Approved Vendor (through your installer) to sell all the SRECs your system is expected to generate over the first 15 years. Solar Incentives & Rebates | ComEd - An Exelon Company 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. These can be single projects or bundled together to meet that At that time, youll be paid a lump sum for all of the credits you accrued. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. 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? How do you file for the federal tax credit in Illinois to get the full value? Program Resources - Illinois Shines 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. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Renewable Resources NEW Illinois SREC Prices for 2022-2023 Program Year. 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. solar panel. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. You can, however, take a partial credit the first year and roll over any leftover credit for up to five years. Policy Blog Under the LTRRPP, the state will hold procurements for utility-scale wind and solar and will secure distributed generation and community solar REC contracts through the LTRRPP Adjustable Block Program (ABP). Thats because the summer months are usually the highest production months for home solar. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. Details from past DG procurement events including winning bid prices are listed on the IPA website. All credits are automatic, provided you have the right electric meter, and a new one will be provided for free even if you dont have a bidirectional meter. Want to know more about the Illinois Solar Renewable Energy Credit Program? We use cookies to ensure that we give you the best experience on our website. However, we dont expect this to appear in the near future. 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. Considering solar can add around 4% to the average home, this could save you a lot in property taxes. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. Illinois SREC | Program Schedule | AEGIS Construction Group State Solar Renewable Energy Certificate Markets | US EPA 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. Illinois offers a property tax exemption for home solar installations. The price per REC in Illinois is governed by the Illinois Power Agency. Please turn on JavaScript and try again. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. 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. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Illinois Shines SREC Program Gets New Funds for 2022 - Zenernet Whether youre already a proud owner of a solar array system or youre thinking about making the solar investment, contact us today to learn more. Phase I of the portal was launched on January 31, 2023. Federal and state incentives are offered to ComEd customers who choose to go solar. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. The portal is an online source designed to help connect clean energy companies withEquity Eligible Personslooking to work in the clean energy sector in Illinois. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). 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 Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). 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. You are not guaranteed to save money unless your contract includes an explicit guarantee. 2023 Illinois Solar Incentives Guide (Tax Credits, Rebates) - EcoWatch 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. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. Unfortunately, Illinois doesnt waive sales tax on PV equipment. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). See solar prices from qualified, local companies. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. ISEA recommends system owners work 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. 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. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. 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. The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. You can also check the current block status here. Agency: The Illinois Power Agency who developed and manages the Illinois Shines program through its subcontractor, Energy Solutions. Illinois Solar Incentives, Tax Credits & Rebates 2023 | EnergySage 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. 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. Payments are usually sent out as a lump sum for systems under 25 kW (most residential systems) or over a 5- or 7-year period for bigger systems and commercial projects. How do I go about finding someone to install solar on my roof/property? This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. 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. Below is the states definition of a qualified person:A person who performs installations on behalf of the certificate holder and who has either satisfactorily completed at least five installations of a specific distributed generation technology or has completed at least one of five listed programs requiring lab or field work and received a certification of satisfactory completion. 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. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. Illinois SREC Program - YouTube Enter your zip code to find out what solar panels cost from installers near you. Well also include the average savings afforded by each perk to help you prioritize which to take. Summit Solar - Illinois Solar Ambassadors REC prices can be found on page 180 of theFinal 2022 Long-Term Renewable Resources Procurement Plan released in August 2022. www.carbonsolutionsgroup.comToll free: (866) 499-1456Email: contact@carbonsolutionsgroup.com, SPECIALTYEnvironmental asset valuation, Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Starting on 9/1/22, new SREC applications are now accepted. Are energy-efficient appliances worth it? Do Illinois Solar Incentives Make It Affordable for Homeowners to Go Solar? 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. 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. However, CEJA altered the program from this cascading approach to an annual block approach. solar calculator. More information about these programs can be found in the Administrative Code document above. The price drop between blocks is 4%. 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. Phone. Which Tax Incentives Are The Best In Illinois? If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. Part I approval results in an ICC approved contract with one of the distribution utilities. You wouldnt buy a car without comparing a few options first. As such, it makes sense to try to shift your billing year to end just after your highest consumption months. Also known as a photovoltaic community renewable generation project.. Youll see far less personal benefit than if you purchased or financed panels. Renewable Energy Credit (REC) is a tradable, environmental asset that System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Illinois has an SREC program called the Adjustable Block Program, or Illinois Shines. 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. It does not appear on display pages. (Same as Project). Its important to note that while the net energy metering program in IL is currently outstanding, these policies change all the time across the country. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. 423 W.800S.#A317 Salt Lake City, UT 84101. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? 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. The Agency's activities related to the development of new renewable resources to support the Illinois renewable Portfolio Standard are guided by the Long-Term Renewable Resources Procurement Plan. That means your taxes wont increase just because you convert to solar energy. It provides an average potential value of $6,143 for Illinois residents, and it takes just a few minutes to file for. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. The value of an SREC is determined by the market subject to supply and . 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). NT. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. kWh) This opportunity is different than a net metering agreement with REC prices are determined through the Adjustable Block Program. The complete list of Illinois solar incentives and tax credits for 2023, plus how to take advantage. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. A system must be energized within 12 months (18 months for community solar projects) after this contract is approved. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront costs. Its important to note that this is not a cashback incentive, so you wont get the average credit value of $6,143 back. Illinois Solar Legislation For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. These Incentives Are Limited! As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. Does Illinois have a solar sales tax exemption? Net energy metering is the second-best perk available to Illinois homeowners, in our opinion. Educational Videos ILSFA-approved vendors are paid via the sales of the systems RECs. Additionally, the IRA provides increased credits for purchasing electric vehicles. The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. SRECS Illinois 2022 | Sunpalenergy Solar in Illinois 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. Learn actionable tips for making each room in your home greener. The Illinois SREC plus Federal Tax Credit makes solar very appealing. 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. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. 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. . This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. Learn more below. The IPA is purchasing SRECs under a 15-year contract. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. Utility companies that need to meet the states RPS goals buy them to remain in compliance. Dan Simms is an experienced writer with a passion for renewable energy. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. All excess energy is credited at the full retail rate, which is the best-case scenario. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. For the latest info see our blog post. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. 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! This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. You can answer some questions yourself, while others can be answered by your installer or sales agent. Captcha validation failed. The best of EcoWatch right in your inbox. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. Illinois Shines: Illinois is one of few states with a Solar Renewable Energy Credit (SREC) program to support the development of solar projects in the state. And, if you send more energy to the grid than we deliver, you can receive credits on your bill. The highly popular and successful solar renewable energy credit incentive, or SREC program, will continue after a recent hiatus. The IPA website is regularly updated with new information about the ABP. Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program.