The EnergySage Solar Calculator estimates the net 20-year savings of a 5 kW system installed in McLean County, IL to be anywhere from $21,564 to $29,175. NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. Learn actionable tips for making each room in your home greener. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. Inventory, GreenBuildingprojects, as well as regulatoryand protocol It credits all solar customers for solar production, and those energy credits can then be sold for a profit. You wouldnt buy a car without comparing a few options first. A These credits work similarly to the federal solar tax credit. Illinois SRECs help those solar system owners recoup their investment. Renew Your Membership 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. This is an outstanding program for those who qualify and cannot afford to convert to solar using other payment methods. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed Dan Simms is an experienced writer with a passion for renewable energy. We use cookies to ensure that we give you the best experience on our website. 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. The first step towards earning SRECs is to shop for a solar panel system. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). Contact us at. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. Whether its ported to the grid or used in your home, youll earn a cash value for all of the energy you generate. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. All excess energy is credited at the full retail rate, which is the best-case scenario. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. The new SREC incentive will start at Block 5 or 4% lower than the last block. 2023 Illinois Shines. The IPA website is regularly updated with new information about the ABP. Types of Approved Vendors Distributed Generation Installer ("DG Installer"): A DG Installer also has received certification from the Illinois Commerce Commission ("ICC") to perform distributed generation installations. 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. 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. Read ourprivacy policy. This includes installers, marketing firms, lead generators, and sales organizations. No, there are currently no plans for incentives to become less beneficial in Illinois in the next two years. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? The Illinois SREC plus Federal Tax Credit makes solar very appealing. Rather than the old five-year SREC program, this new incentive structure lasts for 15 years worth of solar production. For the average residential system, this comes out to more than $10,000 in additional savings. *Companies intend to be available for all procurement events. How do solar incentives affect the cost of solar panels in Illinois? capacity. Credits dont roll over indefinitely though, and any surplus expires at the annual billing date. Shouldnt solar be the same? For instance, if you buy energy from ComEd at hourly prices, any net metering credits will also be based on the price of power at the time your array produces it and sends it to the grid. Casey is an EnergySage writer covering solar, community solar, and sustainability. Through the program, you earn one credit for every 1,000 kWh (1 megawatt-hour) your system generates, which most IL property owners generate in a single month. Residential Solar Incentives (Small/14-unit buildings) ($/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. Failure to enroll or re-enroll may significantly impact the value you receive from your PV system. 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. 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 Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. In Illinois, the credit averages out to $6,143. However, if your system is larger than that, you receive the payments over the course of five years. Like other solar tax credits, with the ITC you can deduct 26% of the cost of your solar energy system from your federal taxes. If you live in Illinois and are considering investing in a solar energy system for your home, heres some great news for you: your state offers myriad solar incentives to help you out. Concerned about climate change? When you have a solar system and are being billed for net metering, you are charged only for the net amount of energy you use during each billing period (i.e., the amount of energy we deliver to you minus the excess amount you send back to the smart grid). The price per REC in Illinois is governed by the Illinois Power Agency. These serve to help the state reach its Renewable Portfolio Standard (RPS) goal of producing 25% of its energy via clean sources by 2026.1. in the Illinois Shines program. You can follow the steps below to ensure you get access to this outstanding benefit program. Residential Solar Incentives (Large/5+ unit buildings) ($/REC) 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. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. 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. 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. Office. If that does happen, and the state doesnt set a new RPS goal, the likelihood is that net energy metering will either no longer be available or will drop to a less beneficial avoided-cost rate. Best of all, the program takes no time to enroll in, as your installer will set up automatic credit sales for you. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. 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. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. REC prices are determined through the Adjustable Block Program. Formore details on Net Metering, view our Frequently Asked Questions. 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 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. With these incentives in the works, its a great time to start evaluating your solar options. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. Part I: The initial application into the program which contains detailed information on the system and its location. Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. Policy Blog Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). way to track and monetize these environmental benefits and compensate There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. Program Administrator: The IPAs subcontractor responsible for running day to day operations of the Adjustable Block Program. The value of an SREC is determined by the market subject to supply and . This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). Your payback time is greatly reduced. Unfortunately, Illinois doesnt waive sales tax on PV equipment. ENERGYSAGE is a registered trademark and the EnergySage logo is a trademark of EnergySage, Inc. Other trademarks are the property of either EnergySage, Inc. or our licensors and are used with permission. The PUC mandates that all excess energy be credited at the full retail rate, which gives you the best chance of eliminating your utility bills. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. Illinois has a very favorable net metering program that helps bring down effective energy costs. The Agency reserves the right to add additional categories of market activities as needed. 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. Which Tax Incentives Are The Best In Illinois? Spots Are Already Being Taken By Illinois Homeowners. Interconnection Agreement: An agreement with the utility to interconnect the photovoltaic community solar or distributed generation system to the utilitys distribution system. If you are deemed a qualified person as defined by Illinois Administrative Code 83 468.20, then yes! 1.877.697.9269. Homeowners Take control of your power bill, become more energy independent. 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. These can be single projects or bundled together to meet that For more information, seeenergy.gov. This is a massive amount of money to put toward your system costs for minimal effort on your part. 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 Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). The credit was bumped up to $7,500 for some makes and models. As we mentioned above, the federal credit is the best solar perk available in IL, in our opinion. RECs are a Still, we love programs like this because it makes renewable energy far more accessible. This may earn customers a rebate from the utility. Illinois Solar Legislation 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. 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. Otherwise, youre paying to produce energy for which the utility wont compensate you. Ameren Illinois also offers net metering to residential customers. Ethics Reporting Associated with Communications with the IPA. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. The ILSFA program is an outstanding option for aspiring solar customers who cannot pay for their systems in cash or qualify for a loan or lease. Individual Memberships through their installer or contact the two preferred national companies As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. 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. Donate 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). Find the best price from solar installers in Illinois. Illinois offers a property tax exemption for home solar installations. 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. represents the clean attributes of solar electricity. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. Right now, there are no plans to make the net energy metering program less beneficial, but things could change without notice at any time. See solar prices from qualified, local companies. Usually, you can expect to receive your payment within a year of your systems completion. Youll see far less personal benefit than if you purchased or financed panels. Watch this helpful video on RECs from the Center for Resources Solutions for further explanation. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). The solar perks in Illinois can collectively bring the cost of solar conversion down by thousands of dollars, making going solar far more accessible and affordable to residents in the state. 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. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. are not able to meet that guideline. 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.