As per the current law, credits carry over month to month until the end of the billing year, whereupon they expire. 1.877.697.9269. Ethics Reporting Associated with Communications with the IPA. This is a massive amount of money to put toward your system costs for minimal effort on your part. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand. 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. How do you file for the federal tax credit in Illinois to get the full value? And, if you send more energy to the grid than we deliver, you can receive credits on your bill. RPS Timeline It helps pay off your system more quickly and maximizes your long-term energy savings. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. Illinois Solar Legislation ISEA recommends system owners work These can be single projects or bundled together to meet that NT, is a health and wellness writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. See how much you can save with this solar incentive on the. 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. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. Please enable scripts and reload this page. 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. 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. Still, we think this is an outstanding solar perk and well worth the time it takes to apply. This past summer of 2022, the Illinois Shines program was on a temporary pause while a new program administrator was installed. 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. Educational Videos As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. 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. Otherwise, youre paying to produce energy for which the utility wont compensate you. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. 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. 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. 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, 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. Dont delay, enjoy the benefits of generating electricity from the sun! Heres why: Illinois is one of just a few states that pay you to generate clean electricity from solar and wind renewable energy systems. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. Does Illinois have a solar sales tax exemption? All excess energy is credited at the full retail rate, which is the best-case scenario. Your installer may also be a Designee or an Approved Vendor with the Program. The credit was bumped up to $7,500 for some makes and models. Homeowners sell these SRECs through a market set up by the Illinois Power Agency (IPA). Of that 25 percent, six percent must come from solar. This is because the utility uses either April or October as the annual billing period end. sales @ mysolidbox.com In most cases, home improvements that make your home more valuable also push your taxes higher since your taxes are based on your overall home value. Want to know more about the Illinois Solar Renewable Energy Credit Program? Phone. Read ourprivacy policy. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. Solar Renewable Energy Credit (SREC) Residential: REC's are a state incentive, whose value is equal to the solar energy you produce over 15 years times the price set by the Illinois Power Agency for REC's. Residential Solar Incentives (Small/14-unit buildings) ($/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. How do I go about finding someone to install solar on my roof/property? solar calculator. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. The document titled "2022 Long-Term Renewable Resources Procurement Plan" below provides information pertaining to the Renewable Energy Credit (REC) program. solar panel. See why here. 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. With one credit earned each month, thats an average of $840 per year your system will earn you. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there. How does the Illinois SREC program work? Illinois has an SREC program called the Adjustable Block Program, orIllinois Shines. Policy Blog RECs are sold by your Approved Vendor to the contacting utility over a 15 year contract. Illinois' SREC incentive: the Adjustable Block Program Under the Adjustable Block Program, also known as Illinois Shines, you can earn one solar renewable energy certificate (SREC) for each megawatt hour (MWh) of electricity your solar system produces over 15 years. The program is made possible via the REC market in Illinois. If youre a ComEd customer and install solar on your business, youre eligible for $250 per kilowatt (kW) of installed solar power. As of the time of writing, each SREC in IL is worth approximately $72. 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. 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. 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. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. In our opinion, the federal credit is the best and most valuable incentive available in Illinois. Casey is an EnergySage writer covering solar, community solar, and sustainability. 30% credit for systems installed between 2005 and 2022, 0% credit for systems installed in 2024 or later, 30% credit for systems installed between 2022 and 2032, 0% credit for systems installed after 2035, Put toward your solar loan as additional principal to reduce the payoff timeline, Use to recoup your cash investment in solar to expedite your. 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. The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. Net metering measures the electricity your PV system produces and credits you for it on your electric bill. The rate will drop in 2033, but solar customers were given an additional decade to take advantage of the credit. Its possible that this incentive will be discontinued again if funds run out. Enrolling in this program is far more complicated than the other incentives discussed above. Were big fans of SREC programs because they credit you for all of your solar production, regardless of what you do with the energy. 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. See solar prices from qualified, local companies. Visit energyequity.illinois.gov to learn more. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. A technical error has occurred. 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? 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. Click here to access the Programs Community Solar Brochure. Is Illinois reducing incentives for rooftop solar in the next 24 months? Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. Illinois has two main solar policies that will have the biggest financial impact on your investment: Under the Adjustable Block Program, also known as Illinois Shines, you can earn one solar renewable energy certificate (SREC) for each megawatt hour (MWh) of electricity your solar system produces over 15 years. This credit has been available since 2005, and it has gone through some changes since it was initially offered. Top brands in 2023, REC pricing for the 2022-2023 program year. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. The value of an SREC is determined by the market subject to supply and . Whats The Near-Term Outlook For More Incentives In Illinois? Enter your zip code to find out what solar panels cost from installers near you. An SREC is a REC that specifically comes from a solar system. 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. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. All of CSG's ABP customers will be receiving the following documents in . As such, taking advantage of this is a no-brainer. That means that every kilowatt-hour (kWh) you generate and send to the grid will offset one kWh you pull from the grid when your panels fail to produce enough energy for your home like at night or on cloudy days. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. Want to find the best deal on solar in all of Illinois? If you are deemed a qualified person as defined by Illinois Administrative Code 83 468.20, then yes! The Illinois SREC plus Federal Tax Credit makes solar very appealing. With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. Visit energyequity.illinois.gov to learn more. 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. This incentive can net you several hundred dollars each year, seriously reducing your solar payback period. You may be trying to access this site from a secured browser on the server. 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. Designee: Third-party (i.e., non-Approved Vendor) entities that have direct interaction with end-use customers. To learn about any incentives you may qualify for, launch our Absolutely! SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. 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. 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). Solar is hot in Illinois! REC prices are determined through the Adjustable Block Program. Illinois SRECs help those solar system owners recoup their investment. The first step towards earning SRECs is to shop for a solar panel system. solar calculator helps you assess your rooftop solar potential by combining your historical usage data with solar data in your area to provide a personalized evaluation for your property, including any rebates and credits. Your local tax assessor will simply not include the value of your solar power system when determining your tax-assessed value. Also known as a photovoltaic community renewable generation project.. Net metering, also called net energy metering (NEM), is a billing policy that is mandated in many states by the local Public Utilities Commission (PUC). But, most people wont qualify unless they already have solar installation experience. 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. 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. Solar is hot in Illinois! The complete list of Illinois solar incentives and tax credits for 2023, plus how to take advantage. The State operates on a fiscal year basis ending on June 30 th of each year. Federal and state incentives are offered to ComEd customers who choose to go solar. 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. 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. 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. Learn more about the technology of photovoltaics from the US Department of Energy here: Consulting with an Approved Vendor is the best way to figure out if your home (either your roof or your property for ground mounted systems) would be a good fit for a solar system. 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. Solar Ambassadors New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? through their installer or contact the two preferred national companies Well list these incentives below and provide a brief explanation as to how they work. Phase I of the portal was launched on January 31, 2023. This Act included significant changes to the Adjustable Block/Illinois Shines program. 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. If you are not a robot then please try again. 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. Block groups are determined by utility companies and load zones. This field is for validation purposes and should be left unchanged. Click below and use our process to receive multiple quotes instead: Connect with approved solar installers in your area. The current block rate for systems under 25kW is $75.29, but it won't be for long! Its possible that the future holds a less appealing avoided-cost rate for excess energy in Illinois or no compensation at all. 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. Like homeowners, small businesses and nonprofits can apply to the Illinois Shines program through an approved vendor. Her work on solar policy has been published in the Canadian National Observer. It looks like your browser does not have JavaScript enabled. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. capacity. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 Leigh Matthews, BA Hons, H.Dip. Over the 15 years the program lasts, youre expected to earn around $12,600 for your solar production. Solar Professional Resources 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. What are the most efficient solar panels? Concerned about climate change? Homeowners get one SREC for. 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). 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. RECs are a Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. ATTENTION! The Initial Plan was approved in 2018 and a Revised Plan was approved in June 2021. 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! Enrolling in net energy metering is, thankfully, a simple and straightforward process. NEW Illinois SREC Prices for 2022-2023 Program Year. 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. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. These credits work similarly to the federal solar tax credit. RECs are certificates that are created when a renewable energy generating facility produces energy. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. Learn more below. . You can answer some questions yourself, while others can be answered by your installer or sales agent. 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. With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you. Large Distributed Generation Large DG): A distributed generation system larger than 10 kW, up to 2 MW. Illinois Power Agency2022. Commercial: 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. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. It was discontinued in 2021, but then reinstated by the Climate and Equitable Jobs Act that same year. See our Community Solar page for more info. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. Please note this is an incentive which is subject to tax. This guarantees clean energy savings. The state has a local SREC market where your credits can be sold. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. Learn more about what a REC is here: https://vimeo.com/113250210. 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. Additionally, the IRA provides increased credits for purchasing electric vehicles. Learn More about the IPA's implementation activities under CEJA. Yes, SRECs are considered taxable income, so you will need to pay taxes on these. The net energy metering program in Illinois is outstanding, even compared to similar programs in other states. This gives you a chance to use up any remaining credits for the year. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. 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. Below, well rank what we believe are the top three most crucial incentives to make sure you take as an Illinois solar customer. For the latest info see our blog post. An SREC represents the environmental benefits of producing one megawatt-hour of electricity using solar power. 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. This is a perk that helps keep down the upfront cost of solar systems to make them a bit more accessible, so it would be a great addition to Illinoiss collection of benefit programs. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. The quotes would include current incentives available in your area. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. One of the best ways to understand costs and incentives is to use a tool to help you calculate your solar potential. 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). 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. Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. Just keep in mind that the credit rate will drop in 2032.