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. 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. RECs are a Illinois SRECs are sold at a fixed price which is determined by contracts, rather than the variable market prices of the old SREC program. SREC Incentive Overview and Status as of March 31, 2021The solar renewable energy credit (or "SREC") has been an exceptional Illinois solar incentive available through the Illinois Shines program. Is IL proposing increasing incentives for rooftop solar in the next 24 months? Educational Videos It credits all solar customers for solar production, and those energy credits can then be sold for a profit. in the Illinois Shines program. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? Instead, qualifying households pay a reduced monthly fee for power produced, up to a maximum of 50% of the value of the energy produced. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. Net metering ensures that you benefit from the full value of your solar panels and is a great way to balance out your electricity production and consumption, which do not always happen at the same time. Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. The average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. RECs are certificates that are created when a renewable energy generating facility produces energy. Are energy-efficient appliances worth it? The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. 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). If you buy electricity from your utility (e.g., basic service or hourly pricing), you must contact the utility to enroll in net metering. 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. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. 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 FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. Thats because the summer months are usually the highest production months for home solar. Additionally, SRECs help bring a cleaner and diversified electrical power system to the state of Illinois. Formore details on Net Metering, view our Frequently Asked Questions. SREC Broker/Aggregator: An SREC Broker/Aggregator works with installers, companies, and individuals to submit projects for approval the Illinois Shines program. (1 REC = 1,000 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. 423 W.800S.#A317 Salt Lake City, UT 84101. Events These brokers will pay property owners for their SRECs on a quarterly basis over the course of five years, and sell the SRECs to the IPA during the specified procurement rounds. Dont delay, enjoy the benefits of generating electricity from the sun! Solar Ambassadors Policy Webinars, Solar Tour However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. Solar farms: what are they and how do they work? The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. are valued for the total energy production from an array and therefore Find out what solar costs in your area in 2023, 2023 expert guide to solar panels for homes. payments will be made (to clients)pursuant to the rules of the How do you file for the federal tax credit in Illinois to get the full value? Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. The new SREC incentive will start at Block 5 or 4% lower than the last block. Instead, approved vendors facilitate the application process and transaction. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. The State operates on a fiscal year basis ending on June 30 th of each year. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. The best of EcoWatch right in your inbox. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. In other words, every time a MWh is produced by a solar array, another SREC comes into existence. This credit has been available since 2005, and it has gone through some changes since it was initially offered. Federal and state incentives are offered to ComEd customers who choose to go solar. These credits work similarly to the federal solar tax credit. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. 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. Her work on solar policy has been published in the Canadian National Observer. 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. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. 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. What to know about Illinois' SREC program The best states for a home solar energy system aren't 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. For the average residential system, this comes out to more than $10,000 in additional savings. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). If you are not a robot then please try again. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. Starting on 9/1/22, new SREC applications are now accepted. If you answer yes, the software will automatically direct you to fill in the required information. 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. The first step towards earning SRECs is to shop for a solar panel system. A list of Approved Vendors participating in Illinois Shines can be found. 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. 1.877.697.9269. To learn about any incentives you may qualify for, launch our 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! You can answer some questions yourself, while others can be answered by your installer or sales agent. More information about these programs can be found in the Administrative Code document above. Carbon Solutions Group (CSG) is serving as a Solar Renewable Energy Credit (SREC) Aggregator for the Illinois Adjustable Block Program. Additionally, eligible nonprofits and public entities can apply for the Illinois Solar for All program, which aims to promote access to the benefits of solar through program incentives. SRECs are sold separately from the actual electricity they produce, which means owners can use the electricity from their solar array to directly lower their home or business electric bill and sell the SRECs that get created from that energy to the buyer. It helps pay off your system more quickly and maximizes your long-term energy savings. Call us at (773) 812-3447 for more information on SRECs. 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! Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. 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. You can follow the steps below to ensure you get access to this outstanding benefit program. solar calculator. All rights reserved. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). Enter your zip code to find out what solar panels cost from installers near you. See why here. Office. Solar panels harness the energy from the sun and convert it into electricity. 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. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. This means the price of SRECs declines as more solar energy systems are installed. Email. 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. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. All excess energy is credited at the full retail rate, which is the best-case scenario. Learn more about what a REC is here: https://vimeo.com/113250210. If you later change your electricity supplier, you will need to re-enroll in net metering with your new supplier. 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. 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. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. cost of photovoltaic (PV) panels in Illinois, low-income households to convert to solar, Federal Solar Investment Tax Credit (ITC), Offers a credit to your tax liability for 30% of your entire system cost, Provides credits for all solar production, which you can sell for a profit, Varies based on the size of your system, your total energy production rate and more, Offers an accessible payment plan for low-income solar customers, Varies based on the size of your system, your average monthly electric bill and more, Waives all taxes on your property for the value added to your home by your PV system, Varies based on your system size, system installation cost and your local property tax rate, Provides credits for excess energy production, which can be used to pay down future bills, Varies based on your monthly utility bills and your average rate of solar production, Various rebate programs offered by local utility companies and municipalities, Varies based on the specific incentive, where you live and your utility provider. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. Usually, you can expect to receive your payment within a year of your systems completion. Contact Tick Tock Energy to get a quote today! The price per REC in Illinois is governed by the Illinois Power Agency. The library zone below is used to load resources. Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems.