In the sections below, well provide responses to some of the most common questions we get asked about solar perks and benefit programs in Illinois. There are many opportunities to help you offset the out-of-pocket costs to install a solar generating system. 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? Homeowners Take control of your power bill, become more energy independent. The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. Illinois Power Agency2022. Register on EnergySage today to get quotes from local, reputable Illinois installers. This is a massive amount of money to put toward your system costs for minimal effort on your part. If you only have time to file for one credit, we strongly suggest making it this one. In other words, every time a MWh is produced by a solar array, another SREC comes into existence. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. It does not appear on display pages. Its also wise in these situations to size your system just to meet your needs, then add panels later if your needs increase. With the new SREC program, its a bit different the current SREC program lasts for a longer duration, and the price you receive for each SREC is fixed and dependent on your utility company, system size, and how soon you go solar. For reference, a residential solar project in Illinois is usually around 7kW and would be considered a small DG project. This may earn customers a rebate from the utility. Unfortunately, Illinois doesnt waive sales tax on PV equipment. Wall-Mounted Solar Awnings & Solar Patios, Interconnection & Netmetering Considerations, Small Distributed Generation (DG) from 0 to 25 kW (AC), Large Distributed Generation (DG) from >25 kW up to 2,000 kW (AC). With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. In fact, Illinois has better incentives than most other states. This credit is also available to all Illinois property owners, and its guaranteed to be offered until 2034. The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. 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). For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. Best of all, the program takes no time to enroll in, as your installer will set up automatic credit sales for you. Formore details on Net Metering, view our Frequently Asked Questions. New pricing is set to be announced in August, 2022, but prices have typically ranged from around $37 to $76 per SREC. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 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. Policy Blog The SREC program in Illinois called the IL Solar Shines Program credits you for all solar power you produce with your system. Inventory, GreenBuildingprojects, as well as regulatoryand protocol A technical error has occurred. The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. Well discuss the steps you need to take below to ensure you get full credit for your SRECs. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662) (CEJA). With one credit earned each month, thats an average of $840 per year your system will earn you. The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. Thats because the summer months are usually the highest production months for home solar. At that time, youll be paid a lump sum for all of the credits you accrued. Commonwealth Edison (ComEd) offers one of the best net metering programs in Illinois. Copyright 2023 LeafScore. NEW Illinois SREC Prices for 2022-2023 Program Year. Learn actionable tips for making each room in your home greener. 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. ISEA recommends system owners work All you need is your solar system's yearly kilowatt hour (kWh) usage and let Acorn's SREC Calculator do the rest. Karsten is an editor and energy specialist focused on environmental, social and cultural development. Approved Vendors often work with Designees to manage various portions of solar system development. 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. This means most homeowners with a 6 kW array could earn around $360-$750 each year for their SRECs in Illinois. Illinois Solar Legislation As such, taking advantage of this is a no-brainer. Solar projects serviced by Ameren Illinois, MidAmerican, Mt. All excess energy is credited at the full retail rate, which is the best-case scenario. Illinois may not have the year-round sunshine of the Southwest, but it does have a great solar power market because of the available financial incentives. You can, however, take a partial credit the first year and roll over any leftover credit for up to five years. 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. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. You can also check the current block status here. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. Its possible that this incentive will be discontinued again if funds run out. Learn more below. For your system, the value is 7.1 cents/kWh produced, which is paid in year one. Community Solar Resources 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. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. 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. Solar farms: what are they and how do they work? You wouldnt buy a car without comparing a few options first. This Act included significant changes to the Adjustable Block/Illinois Shines program. Usually, you can expect to receive your payment within a year of your systems completion. Energy Solutions has been designated the Program Administrator. Illinois offers a property tax exemption for home solar installations. Well break down the initial steps below. Unfortunately, the program ran out of funding in late 2020.The availability of SREC funding was divided between "Group A," which is largely run by Ameren downstate 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. 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. 105 West Madison Street, Suite 1401 Chicago, Illinois 60602, A calendar of procurement events can be accessed on. Just keep in mind that the credit rate will drop in 2032. 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. What new incentives are there in Illinois following the passing of the Inflation Reduction Act? 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. 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. However, CEJA altered the program from this cascading approach to an annual block approach. This program is set to open up January, 30th 2019. 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. 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. If youre looking for a quote contact us today by phone or via our contact us page! 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. Site maintained byEnergy SolutionsAll Rights Reserved. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. 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. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. Phone. These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. The Final 2022 Long-Term Renewable Resources Procurement Plan is available here. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. capacity. 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. Now when a blocks capacity is filled, applications are placed on a waitlist until the next program year (if filled mid-year). 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. Dont delay, enjoy the benefits of generating electricity from the sun! threshold. As of the time of writing, each SREC in IL is worth approximately $72. The quotes would include current incentives available in your area. Does Illinois have a solar sales tax exemption? Policy Webinars, Solar Tour The homeowner, in turn, enjoys solar panels and the energy that they generate at a low cost. If your bill is based on fixed prices for energy, your credits will simply be measured in kWh. Click here to access the Programs Community Solar Brochure. 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. Let us help you partner with the state of Illinois to make it a better environment for all, and a better vehicle for the money you'd be spending on electricity bills. On Sept. 15, 2021, the Climate and Equitable Jobs Act (Public Act 102-0662) was signed into law by Illinois Governor J.B. Pritzker. Federal and state incentives are offered to ComEd customers who choose to go solar. Illinois also offers a special exemption for residents of counties with fewer than three million inhabitants. The perks available are plentiful and highly beneficial, and the state is currently on track to meet its RPS goal. How does the Illinois SREC program work? Email. Part I: The initial application into the program which contains detailed information on the system and its location. What Do Illinoisans Need to Know About the Federal Solar Tax Credit? This guarantees clean energy savings. The idea is to boost Illinois solar investments by increasing their monetary value in addition to offering savings on electricity bills. 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. Sign up for our email newsletter! Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. Illinois Shines Opens for 2022-2023 Program Year, Re-Opens for Applications 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. The complete list of Illinois solar incentives and tax credits for 2023, plus how to take advantage. The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. Call us at (773) 812-3447 for more information on SRECs. Community Solar Project Developer: A Community Solar Project Developer designs and oversees the development of community solar projects. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. In this guide to solar benefits and incentive programs available in Illinois, youll learn: Our solar experts have sifted through hundreds of local governments and utility companies websites to find accurate information about current solar incentives in each state. 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. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. solar calculator. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. See the cost of solar in IL cities and towns, Enter your zip code to see solar quotes near you. Speaking of Solar Blog, Homeowner Resources 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. Dont forget about the 30% Solar Federal Tax Credit that is available for solar owners as well. Visit energyequity.illinois.gov to learn more. If youre an Ameren Illinois customer with a Smart Inverter that meets eligibility requirements, you can apply for the rebate here. Any credits can be used to offset Basic Generation Service costs, meaning youll still pay a bill with connection fees and other administrative charges. Under the Adjustable Block Program, this system falls into the Small DG category. That system value is calculated using the cost of your panels, batteries and inverters, plus installation costs. Essentially, you can generate additional income from the power that your panels produce in order to help the state meet the solar requirement. The Developer must utilize an installer for the project who is certified by the Illinois Commerce Commission (ICC). Her work on solar policy has been published in Canada's National Observer.