The tax exemption prevents the value of your solar panel system from contributing to your tax-assessed value. Educational Videos ICC: Illinois Commerce Commission (see 220 ILCS 5); the State Agency charged with regulating public utilities in Illinois, as well as approving aspects of the Adjustable Block Program. Sign up for our email newsletter! 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. 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. For small residential & commercial systems under 25 kW (AC) the SREC payment will occur in one payment. Incentive values vary based on estimated solar production, the size of your solar installation, your utility company, and more. For the current guidebook for the Adjustable Block program, please click here. On 9/15/21 the Climate & Equitable Jobs Act was approved which includes new funding for the Illinois Shines SREC program. Block groups are determined by utility companies and load zones. Visit energyequity.illinois.gov to learn more. Please enable scripts and reload this page. 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. 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. Email. The best of EcoWatch right in your inbox. Across the country, NEM is one of the most beneficial incentives available for solar customers. Lastly, each size range within a category corresponds to an SREC price. If you live in a state surrounding Illinois that doesnt have an SREC program, your project may still be eligible. 1.877.697.9269. The IPA is purchasing SRECs under a 15-year contract. Distributed Generation Project Developer (DG Project Developer): A DG, Project Developer may oversee client relationships, design of the solar project, and site management. It credits all solar customers for solar production, and those energy credits can then be sold for a profit. The Illinois Power Agency implemented a long-term renewable resources plan, part of which provides SRECs for customers who generate solar energy. 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. SRECTrade | SREC Markets With the enactment of the Public Act 102-0662, the Illinois Power Agency is tasked with numerous crucial implementation activities. The Illinois Power Agency (IPA) welcomes your questions and hopes you will take advantage of the information offered on our website. 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. The incentive is called a Solar Renewable Energy Credit (SREC), and its administered by the Illinois Shines Program. The new SREC incentive will start at Block 5 or 4% lower than the last block. Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes. Illinois SREC Program - YouTube Assuming you have an average system installed and typical energy bills for the area around $93.98 and your panels generate enough to offset 50% of your bill, this program could save you an average of $11,277 over the first 20 years of the panels lifespan. Policy Blog Yes, SRECs are considered taxable income, so you will need to pay taxes on these. As of right now, there are no near-term changes to incentives in Illinois planned, which is good news for solar customers. What are the best rebates and incentives to take when converting to solar in Illinois? Ameren Illinois also offers net metering to residential customers. 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. Register on EnergySage today to get quotes from local, reputable Illinois installers. This field is for validation purposes and should be left unchanged. Enter your zip code to find out what solar panels cost from installers near you. Read ourprivacy policy. This means that any value added to your home by installing solar is not factored into property assessments and associated property taxes. Weve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home. In 2023, the ITC will drop to 22%. 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. SRECS Illinois 2022 | Sunpalenergy Solar in Illinois 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. Illinois may get a little less sun than average, but with above-average electricity costs, the Prairie State is a great place to go solar at home. Learn actionable tips for making each room in your home greener. Details from past DG procurement events including winning bid prices are listed on the IPA website. Illinois separates SREC price amounts into blocks, as each block fills up the price of the SRECs goes down in the next block. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one SREC. The program lasts for 15 years after you install your photovoltaic (PV) equipment. energy projects,emissions mitigation and management,GHG Emissions Illinois Power Agency Energy Workforce Equity Portal The portal is an online source designed to help connect clean energy companies with Equity Eligible Persons looking to work in the clean energy sector in Illinois. capacity. 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. This means you can sign up to demand management programs with utilities to help manage energy transfer to and from the grid. 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. It does not appear on display pages. All applications to the Adjustable Block Program must be submitted by an approved vendor, which includes solar installers, project developers, and SREC brokers and aggregators. These customers will need to figure out net metering credits with that supplier. Dont be. The complete list of Illinois solar incentives and tax credits for 2023, plus how to take advantage. If you own your home array and can take advantage of the states robust SREC market, Illinois is a great place to go solar. Its a perfect incentive for businesses, farms, homes, non-profits, government buildings, others to take advantage of. ILSFA-approved vendors are paid via the sales of the systems RECs. Programand via direct deposit (ACH) to a bankaccount of their choice. You can follow the steps below to ensure you get access to this outstanding benefit program. Learn more about the Illinois Solar Renewable Energy Credits Program. 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. 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). Solar RECs (SRECs) are created for each megawatt-hour of electricity generated from solar energy systems. Utilities must offer retail rate net metering in Illinois, with the exception of cooperatives or municipalities. This Act included significant changes to the Adjustable Block/Illinois Shines program, including the reopening of the program within 90 days (December 14, 2021). 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. Mid-American also offers net metering and allows for a shorter than 12 months initial billing period. 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. FEJA established the incentive structure known as the Adjustable Block Program (ABP), also known as the Illinois Shines program. Recent Posts. 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. 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. Top brands in 2023, REC pricing for the 2022-2023 program year. At that time, youll be paid a lump sum for all of the credits you accrued. Starting on 9/1/22, new SREC applications are now accepted. In addition to FEJA, the Climate and Equitable Jobs Act (CEJA) significantly expanded the ABP Program in 2021. Large systems over 25.0 kW to 5,000 kW are paid out annually over 7 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. The federal solar investment tax credit (ITC) is, in our opinion, the most appealing incentive available in Illinois. Municipal & County Resources Spots Are Already Being Taken By Illinois Homeowners. Policy Webinars, Solar Tour Instead, the total credit amount is applied to the income taxes you owe, which means you can only take the credit if you owe money on your taxes. Events The Agency reserves the right to add additional categories of market activities as needed. The idea is to boost Illinois solar investments by increasing their monetary value in addition to offering savings on electricity bills. It allows residents with household incomes below 80% of the median to get PV panels installed for no upfront costs. 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. Solar Panel Cost in Illinois (2023 Local Savings Guide), Top 6 Best Solar Companies in Illinois (2023 Reviews). It helps pay off your system more quickly and maximizes your long-term energy savings. illinois srec program - mysolidbox.com These payments to your Approved Vendor will help offset the cost of your new PV system or your community solar subscription. 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 average cost of photovoltaic (PV) panels in Illinois is around $20,475 before any incentives or rebates are applied. The Federal Solar Tax Credit is still 26 percent for construction that started before Dec. 31, 2022. We can educate you on all the current state rebates and credits around the red hot SREC program, exclusively available in Illinois. 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. Once you move forward with a solar company, theyll work with you and the state to ensure that your system is eligible for SRECs once its operational. Find out how much you can receive when you register through the Illinois Shines Program with Acorn! The Illinois Power Agency (IPA) requires that procurement bids meet a minimum of 1MW of installed capacity. Visit energyequity.illinois.gov to learn more. Solar is hot in Illinois! IPA: Illinois Power Agency; the State Agency charged with administering the procurement of renewable energy resources to meet Illinois renewable energy portfolio standard, in addition to procuring electric power supply for eligible retail customers of electric utilities and other responsibilities. solar panel. Part II: The second part of the application completed after energization, demonstrating completion of the project in accordance with the Part I parameters approved. Ultimately, these Illinois solar incentives help stimulate development of new renewable energy resources. 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. 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. Federal and state incentives are offered to ComEd customers who choose to go solar. All of CSG's ABP customers will be receiving the following documents in . The current block rate for systems under 25kW is $75.29, but it won't be for long! 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. 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 you only have time to file for one credit, we strongly suggest making it this one. Solar Professional Resources Illinois Power Agency If you are looking for information on a program serving low-income and environmental justice communities, please visit the Illinois Solar for All program site. These can be single projects or bundled together to meet that The tax exemption for solar equipment in IL prevents your taxes from going up as a result of installing solar equipment. The Illinois Shines program is the state's equivalent of the Solar Renewable Energy Credit (SREC) programs and adjustable block programs in other states. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment for residential and business applications! This gives you a chance to use up any remaining credits for the year. As a result, the federal credit is back up to 30% and got extended for ten years to 2034. If you are not a robot then please try again. are not able to meet that guideline. This technically wont cost you anything since you can take the taxes out of the lump sum payment you get. This includes installers, marketing firms, lead generators, and sales organizations. 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). We recommend using the money earned via your credits to: Selling your SRECs on the local market is easier to do than you might think, as its automatic for most homeowners. 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. 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. The amount of power a solar system will generate is dependent on a variety of factors, including system size, roof angle, and sunlight. Solar system owners can create SRECs from the energy produced by their solar panels and arrays. If youre in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market. You may be trying to access this site from a secured browser on the server. Find the best price from solar installers in Illinois. Lastly, net energy metering doesnt cost you anything to apply for, and it takes virtually no time investment either. With these incentives in the works, its a great time to start evaluating your solar options. Illinois, Missouri - (618)-444-2693 Utah, Idaho - (801)-444-5130 Thats because the summer months are usually the highest production months for home solar. However, we dont expect this to appear in the near future. Dont delay, enjoy the benefits of generating electricity from the sun! You may participate in Illinois Shines in one of two ways: Whether you are planning to install solar on your property or subscribe to a community solar project, you must work with an Approved Vendor who will either submit your solar system to the Program or register your community solar subscription with an already established Community Solar project in the Program. The payout of the credits is calculated based on the homeowner's system . Part I: The initial application into the program which contains detailed information on the system and its location. That incentive is a dollar-for-dollar reduction in the income tax liability that a person or company claiming the credit would otherwise pay the federal government. How do you file for the federal tax credit in Illinois to get the full value? This is because the utility uses either April or October as the annual billing period end. 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, RECs are a Give us a call today to learn more from our experts and how this may potentially be a great opportunity for your solar power system. Small Distributed Generation (Small DG): A distributed generation system less than or equal to 10 kW in size. On September 15, 2021 Governor Pritzker signed the Climate and Equitable Jobs Act (Public Act 102-0662). The ABP features capacity-based blocks set at predetermined prices for 15-year REC contracts. the utility where system owners are credited for excess generation. *Companies intend to be available for all procurement events. If you answer yes, the software will automatically direct you to fill in the required information. SRECs accrue as solar electricity is generated and are typically paid out either as a lump sum or over a 7-year period. Usually, you can expect to receive your payment within a year of your systems completion. These Incentives Are Limited! The program maintains a list of pre-approved vendors to ensure excellent workmanship and customer protection. The quotes would include current incentives available in your area. For commercial customers, this is paid out over 5 years, and the REC value varies based on the size of the solar system. The new guidelines are as follows: Claiming the federal tax credit in Illinois couldnt be much easier. NEW Illinois SREC Prices for 2022-2023 Program Year. Solar for All is available for residential properties, non-profits and public facilities, and community solar projects that serve low-income customers. Renewable Resources represents the carbon or pollution avoided from the grid. All excess energy is credited at the full retail rate, which is the best-case scenario. Note that the SREC program in Illinois is designed to incentivize ongoing decreases in the cost of going solar in the state. Solar projects serviced by Ameren Illinois, MidAmerican, Mt. 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. Solar Ambassadors 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. Office. 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. Net metering measures the electricity your PV system produces and credits you for it on your electric bill. However, not all of these programs are equally as beneficial, especially when you consider the time investment required to take advantage of them. This incentive also takes basically no time to apply for, as youll be opted in automatically by your electric company. On July 1, 2022, Energy Solutions became the new Program Administrator for Illinois Shines. If you are deemed a qualified person as defined by Illinois Administrative Code 83 468.20, then yes! Welcome to the Illinois Power Agency (IPA) Energy Workforce Equity Portal The portal is an online source designed to help connect clean energy companies with Equity Eligible Persons looking to work in the clean energy sector in Illinois. In 2017, the Illinois government created new legislation that altered the existing Renewable Energy Certificate (REC) program structure in the state. RECs may be sold to the utility for meeting the State's Renewable Portfolio Standards. REC Procurements To receive the rebate, your solar panel system cannot be larger than 2,000 kW in capacity. Enrolling in net energy metering is, thankfully, a simple and straightforward process. Take Action to Restore Illinois SREC Funding in Springfield This could be your installer, a project developer, a broker, or an aggregator. 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. This incentive structure is very similar to the Megawatt Block rebate available in New York State, as well as the SMART incentive in Massachusetts. As such, you stand to make the most from SRECs in Illinois by going solar now instead of waiting. 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. 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. To understand how much power your system will generate, please work with your Approved Vendor, as each system is different. Project: A solar photovoltaic array and all associated equipment necessary for its generation of electricity and connection to the distribution grid. If youre ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. The kind of credits you get each month for surplus energy depends on the price you pay for energy from ComEd and whether you received the utilitys commercial distributed generation rebate (not currently available for residential arrays). Enter your zip code to see solar quotes near you. 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. Individual Memberships Site maintained byEnergy SolutionsAll Rights Reserved. We use cookies to ensure that we give you the best experience on our website. How do I go about finding someone to install solar on my roof/property? 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 portal is an online source designed to help connect clean energy companies withEquity Eligible Personslooking to work in the clean energy sector in Illinois. Youll see far less personal benefit than if you purchased or financed panels. A The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. 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! This dedicatedCEJA implementation pageserves as an up-to-date hub of information for those items from the Act being implemented by the Agency. The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. The library zone below is used to load resources. Solar Panel Installation | Highland & Springfield, IL & Layton, UT That means your taxes wont increase just because you convert to solar energy. RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois. The same rules apply re credits for kWh produced, and customers maintain the rights to renewable energy certificates and other incentives associated with solar. We should also mention that the beneficial NEM program is subject to change, as it has in some other states across the country. Renewable Energy Credit (REC) is a tradable, environmental asset that Above, weve discussed all of the incentives available to Illinois property owners. Its possible that this incentive will be discontinued again if funds run out. These credits work similarly to the federal solar tax credit. Small Subscriber: A residential or small commercial customer with a subscription below 25 kW. Block eligibility depends on a few factors: There are currently two groups associated with the ABP program Group A and Group B. 2021 Illinois Solar Incentives - Solar One USA What are the most efficient solar panels? 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). Eligible new solar systems installed in 2022 under the Illinois Shines program will be eligible to accrue SRECs for 15 years. In Illinois, the credit averages out to $6,143. Illinois SRECs: Changes Coming to the Program in 2022 | EnergySage The Ultimate SREC Guide - Those Solar Guys 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. The state set a specific amount of installed solar (in megawatts, MW) and an associated SREC price for each block. What Illinois Residents Need To Know About SRECs? 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. For solar energy customers, the April settlement date will likely make more sense than the October date. Illinois Shines Resumes Acceptance of Traditional Community Solar Project Applications. Unfortunately, Illinois doesnt waive sales tax on PV equipment. Add in net metering available from public utilities and a state property tax exemption and youre onto a winner with solar in the state. To learn about any incentives you may qualify for, launch our You dont need to apply for anything or file any paperwork, and the savings are massive. Illinois Shines is the brand name for the Adjustable Block Programa state-administered incentive program supporting the development of new solar energy generation in Illinois. Karsten is an editor and energy specialist focused on environmental, social and cultural development. Utilities are only required to issue SREC payments quarterly, so the time it takes to receive your check varies. Illinois Solar Incentives, Tax Credits & Rebates 2023 | EnergySage