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through their installer or contact the two preferred national companies Illinois Power Agency2022. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. The tax exemption is another automatic state incentive, so you dont have to take any action to claim it. advisory with regard tocarbon emissions and renewable fuels, TRANSACTION MANAGEMENTOnline - after site upgrade is complete(expected by mid May), CLIENTSResidential and Commercial Installers Residential and Commercial System Owners MunicipalitiesUtilities in a variety of settingsand market conditions around the globe, PAYMENT OPTIONSUpfront and fixed payment options with market based pricing for existing systems, www.srectrade.comToll free: (877) 466-4606Direct: (415) 763-7732Email:clientservices@srectrade.com, SPECIALTY100% SREC transaction focus500+ MW across 35,000+ assets under management, TRANSACTION MANAGEMENTOnline bid submission and system registration for installers and system owners. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. Please contact our Customer Care Center if you have questions. These customers will need to figure out net metering credits with that supplier. 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. The library zone below is used to load resources. 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. 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. 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. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. 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. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. This Act included significant changes to the Adjustable Block/Illinois Shines program. Policy Blog It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. Well also include the average savings afforded by each perk to help you prioritize which to take. Municipal & County Resources These Incentives Are Limited! Unfortunately, Illinois doesnt waive sales tax on PV equipment. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. Want to find the best deal on solar in all of Illinois? . ATTENTION! An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. (1 REC = 1,000 Considering solar can add around 4% to the average home, this could save you a lot in property 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. The new SREC incentive will start at Block 5 or 4% lower than the last block. 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. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. Illinois solar incentives and rebates help you save on solar, Is something missing or out of date? REC prices are determined through the Adjustable Block Program. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. For the current guidebook for the Adjustable Block program, please click here. sales @ mysolidbox.com Homeowners Take control of your power bill, become more energy independent. The State operates on a fiscal year basis ending on June 30 th of each year. If youre looking for a quote contact us today by phone or via our contact us page! Solar is hot in Illinois! Additionally, the IRA provides increased credits for purchasing electric vehicles. Learn More about the IPA's implementation activities under CEJA. Still, we love programs like this because it makes renewable energy far more accessible. 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. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). In his free time when he's not checking his own home's solar production he enjoys outdoor activities like hiking, mountain biking, skiing and rock climbing. In some cases, ComEd customers actually purchase energy from another supplier. 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. For the latest info see our blog post. 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. Enrolling in net energy metering is, thankfully, a simple and straightforward process. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. Policy Webinars, Solar Tour 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. The program is made possible via the REC market in Illinois. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). Federal and state incentives are offered to ComEd customers who choose to go solar. 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. 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. Whats The Near-Term Outlook For More Incentives In Illinois? The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. Lastly, each size range within a category corresponds to an SREC price. Commonwealth Edison offers the top utility net metering program in Illinois. solar calculator. 1.877.697.9269. The best states for a home solar energy system arent always the sunniest; those who benefit the most from installing a solar photovoltaic (PV) system for their home spend a lot of money on electricity and live in a state with good solar programs and incentives. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. 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). Contact us at. 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. Copyright 2009-2023 EnergySage, Inc. Is IL proposing increasing incentives for rooftop solar in the next 24 months? Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. Are energy-efficient appliances worth 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. In the chart below, well include a breakdown of all of the incentives and rebates you can take advantage of as a solar customer in Illinois. 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. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. The IPA and the Program Administrator are providing updates on these programmatic changes and the process of reopening the program as they develop. This is because the utility uses either April or October as the annual billing period end. As of the time of writing, each SREC in IL is worth approximately $72. We use cookies to ensure that we give you the best experience on our website. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. The Future Energy Jobs Act (FEJA) took effect on June 1, 2017 and is designed to stimulate job creation in clean energy, assist the state in meeting its ambitious RPS goal by 2025, and promote energy efficiency. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. Youll see far less personal benefit than if you purchased or financed panels. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. 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. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 years. The program lasts for 15 years after you install your photovoltaic (PV) equipment. Dont be. Formore details on Net Metering, view our Frequently Asked Questions. 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. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. You wouldnt buy a car without comparing a few options first. All utility companies in Illinois are required to participate, including Ameren and ComEd. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). Does Illinois have a solar sales tax exemption? 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! If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. 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). solar panel. Illinois has a very favorable net metering program that helps bring down effective energy costs. Learn more about the Illinois Solar Renewable Energy Credits Program. Illinois Solar Legislation If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Individual Memberships Solar farms: what are they and how do they work? Under the Adjustable Block Program, this system falls into the Small DG category. REC Procurements If you answer yes, the software will automatically direct you to fill in the required information. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. 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. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. RECs The net energy metering program in Illinois is outstanding, even compared to similar programs in other states. 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. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. This could be your installer, a project developer, a broker, or an aggregator. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. The Agency reserves the right to add additional categories of market activities as needed. Ethics Reporting Associated with Communications with the IPA. Please turn on JavaScript and try again. Otherwise, youre paying to produce energy for which the utility wont compensate you. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. The price per REC in Illinois is governed by the Illinois Power Agency. All rights reserved. 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. With one credit earned each month, thats an average of $840 per year your system will earn you. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. 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. The price drop between blocks is 4%. Of that 25 percent, six percent must come from solar. Office. Enrolling in this program is far more complicated than the other incentives discussed above. 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. Shouldnt solar be the same? The Illinois Shines program is the states equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. Speaking of Solar Blog, Homeowner Resources Call us at (773) 812-3447 for more information on SRECs. In other words, every time a MWh is produced by a solar array, another SREC comes into existence. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. 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. ComEd's 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. Illinois offers a property tax exemption for home solar installations. 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. NT. Homeowners get one SREC for. See why here. This program is set to open up January, 30th 2019. How do you file for the federal tax credit in Illinois to get the full value? Illinois Solar Industry Data, RPS Legislation That means your taxes wont increase just because you convert to solar energy. Net Metering: A provision in an electric utilitys tariff that allows for crediting a customers bill for all or some of the production of a distributed generation or community solar facility which has been exported to the distribution grid. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. 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. Starting on 9/1/22, new SREC applications are now accepted. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. 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! Dan Simms is an experienced writer with a passion for renewable energy. In Illinois, net metering customers may be eligible for a Smart Inverter Rebate if they install and use an approved Smart Inverter as part of their solar energy system. If youre ready to apply for this beneficial Illinois solar incentive, give us a call or contact us today. Register on EnergySage today to get quotes from local, reputable Illinois installers. 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. Ameren Illinois also offers net metering to residential customers. Factor in a solid SREC market and the federal tax credit and some homeowners can quickly recoup nearly 50% of the cost of a home solar energy system. The average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. Copyright 2009-2023 EnergySage, Inc. As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. The quotes would include current incentives available in your area. Having trouble deciding? 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 field is for validation purposes and should be left unchanged. 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. The IPA website is regularly updated with new information about the ABP. Top brands in 2023, REC pricing for the 2022-2023 program year. Read ourprivacy policy. Still, we think this is an outstanding solar perk and well worth the time it takes to apply. For more information, seeenergy.gov. Across the country, NEM is one of the most beneficial incentives available for solar customers. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Well list these incentives below and provide a brief explanation as to how they work. Still, you should plan to include the SREC value in your income and to pay taxes on them. On September 15, 2021, Governor Pritzker signed the Climate & Equitable Jobs Act, which includes new funding for the Illinois Shines SREC program, a massive incentive for solar buyers in Illinois. This may earn customers a rebate from the utility. A technical error has occurred. NEW Illinois SREC Prices for 2022-2023 Program Year. Your installer may also be a Designee or an Approved Vendor with the Program. Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created. If your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. Learn More. System: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. The Illinois Solar for All (ILSFA) Program is an excellent option for low-income households to convert to solar power. However, CEJA altered the program from this cascading approach to an annual block approach. Solar Professional Resources The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. The current block rate for systems under 25kW is $75.29, but it won't be for long! Usually, you can expect to receive your payment within a year of your systems completion. 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. 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. Illinois Solar Renewable Energy Credits help the state meet Renewable Portfolio Standards (RPS), which is a regulatory mandate that sets goals for generating a percentage of Illinois overall electricity from renewable energy. 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. are not able to meet that guideline. 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. 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. The Inflation Reduction Act (IRA) is the piece of legislation that extended the federal credit and bumped up the credit rate. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. 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. 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. Solar Ambassadors Education Webinars, Illinois Solar Energy Association c/o Shamrock Electric | 1281 E. Brummel Ave Elk Grove Village, IL 60007 | contactisea@illinoissolar.org, Copyright 2009 - 2018 Illinois Solar Energy Association, FAQs - Utility, Community, and Large-Scale Solar, Consumer Protection Business Code of Conduct, Future Energy Jobs Act Workforce Development Programs, COVID-19 Resources for Solar Professionals. The payout of the credits is calculated based on the homeowner's system . New customers should review the ABP Program Brochure for general program information. All of CSG's ABP customers will be receiving the following documents in . Also known as a photovoltaic community renewable generation project.. 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. Register for free to start comparing quotes. Participating in Illinois Shines means you play an important role in helping the State meet its renewable energy goals. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. 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. 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. Renewable Energy Credit (REC) is a tradable, environmental asset that To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. In 2023, the ITC will drop to 22%. Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. This is a massive amount of money to put toward your system costs for minimal effort on your part. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) 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. That would mean less credit for each kWh you pass to the grid, which translates to fewer long-term savings. TheIllinois Solar for Allprogram helps low-income households install solar panels with no upfront costs. As mentioned above, every 1,000 kWh you generate will yield an energy credit, which will get sold automatically on the local market. This incentive can net you several hundred dollars each year, seriously reducing your solar payback period.