Understanding the Solar Renewable Energy Credits (SRECs) in Chicago
Are you living in Illinois and planning to go solar? It may seem expensive when looking only at the initial investment.
However, you have a unique opportunity to benefit from federal, state, and local programs. After all, Illinois ranks among the top in the number of programs. Solar energy renewable credits can save you thousands of dollars. We will tell you about the features of such initiatives.
What Sets Illinois Apart From Other States
Due to its unique policies, Illinois compares favorably with other states, especially in the area of solar energy renewable credits and solar initiatives.
The main key aspects can be seen as:
1. Comprehensive renewable energy legislation.
- Future Energy Jobs Act (FEJA) – provides funding for solar and wind energy projects, energy efficiency, and training programs.
- Climate and Fair Jobs Act (CEJA) – aims to transition Illinois to 100% clean energy by 2050.
2. Multiple programs that provide tiered incentives for solar installations.
3. Robust net metering policies that offer offsets for excess electricity, such as solar renewable energy certificates, Illinois.
4. An aggressive renewable portfolio standard (RPS).
5. Innovative financing options (solar renewable energy credits in Illinois).
6. Comprehensive support for electric vehicles (EVs) – rebates and incentives for their purchase.
7. Climate and energy justice (focuses on making sure the benefits of renewable solar energy are felt by everyone in the state).
The state has invested a total of $5.2 billion in solar energy, and prices have fallen 43% over the past 10 years.
Solar Panel Incentives in Illinois
Local municipalities and utility companies offer a variety of solar renewable energy credits in Illinois for those who want to install solar panels. For example:
- Local rebates
- Expedited permitting processes
- Solar renewable energy credits with low interest rates
In addition to statewide programs and Illinois solar renewable energy credits, it is also possible to qualify for local incentives such as:
- Chicago’s Green Building Program
- Group solar purchase programs
Comparing Illinois Incentives for Solar Panels
Illinois is one of the most favorable states for solar energy deployment, so there are many incentives for residents to install and support solar projects. The solar renewable energy credit program is also widely used.
How much are renewable energy credits worth? Let’s review and compare some of them.
| Incentives | Description | Right to participate | Price |
| Residential Clean Energy Loan | Reimbursement of 30% of the cost of the solar system | All Illinois residents | About $7200 (based on the average cost of an 8 kW solar panel) |
| Solar Property Tax Adjustment | What does solar tax credit mean? If you already have a solar system, you can work with your tax preparer to calculate the value of the property downward based on whether it has a solar system or a conventional heating and cooling system | All Illinois residents | About $497 per year (may vary depending on home price, solar installation, and local taxes) |
| Commonwealth Edison Co. (ComEd) Distributed Generation Rebate (utility company) | Discount on installation of solar panels and energy storage | ComEd Clients | Up to $300 per kilowatt of power for a qualified solar system and the same for an energy storage device |
| Ameren Illinois (Utility Company) Smart Inverter Rebate | Discount on installing a smart inverter | Ameren Illinois Clients | Up to $300 per kilowatt |
| Group purchasing programs Solar | Training and group discounts for solar panels | Residents of Urbana-Champaign and the Chicago metro area | Calculate |
| Illinois Shines (national program) | Upfront financing of 15-year solar renewable energy loans | All residents | Varies |
| Illinois Solar for All (national program) | Covers all solar system costs for residents who earn less than 80% of the area median income | Illinois residents who are eligible for income | Varies |
| Net metering | This metering allows excess solar energy to be sold back to the utility | ComEd, Ameren, and MidAmerican users | Varies |
| Solar renewable energy credits, or SRECs Illinois | Illinois residents who install the best solar panels can earn credits for the kilowatts produced by their panels. Then, sell solar renewable energy certificates (SRECs) | All Illinois residents who have them can do the Illinois SREC calculator | Solar renewable energy credits SRECs vary |
Local Rebates for Solar Appliances in Illinois
Rebates for solar appliances (water heaters or battery storage systems) are available in some parts of Illinois. They help offset upfront costs and promote comprehensive solutions that go beyond solar panels alone.
Depending on specific utility companies, there are different offers and rebates for solar devices. Most notable are the following:
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Commonwealth Edison Solar (ComEd)
Includes all sorts of solar incentives to support residential and commercial customers in installing solar energy systems in their service area. The rebate amount depends on the size of the system and the customer’s class. Approximately up to $300 for each kilowatt of solar capacity.
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Ameren Illinois
Provides rebates for residential, commercial, and industrial customers in this service area who install solar energy systems.
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Illinois Municipal Electric Agency (IMEA) Solar Programs
A portion of the companies that are part of IMEA offer rebates and incentives for solar energy. Extended to customers who participate in municipal electric companies. The rebate amount varies by municipality.
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Peoples Gas and North Shore Gas Solar Energy Rebates
These utilities offer their customers in Illinois solar incentives for solar water heating systems. The rebate will depend on the size of the system.
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Solarize Programs
These are group purchase programs that provide rebates to residents and businesses in the area for solar system installations. The rebate amount varies depending on the group purchase agreements.
To accurately understand solar renewable energy credit prices and terms, contact your local utility company or municipality directly.
Looking to install a solar system in Chicago? Get your free solar quote in a matter of minutes!
Illinois Net Metering Rules for Solar Energy
To encourage the adoption of solar energy, Illinois has established net metering rules. It is worth distinguishing between solar renewable energy credits (SREC) and net metering.
Through net metering, residential, commercial, and industrial customers who generate their electricity will receive solar renewable energy credits for excess generation and return it to the grid.
Your utility company will only charge you for the net electricity you use (or other fixed charges). You will receive Illinois solar renewable energy credits for excess electricity generated.
What Types of Systems Meet the Requirements?
To participate in this program, you must own or operate a renewable electricity generator with a capacity of up to 2000 kW. Electricity generation can be from more than just a solar or wind system. For example, renewable electric generators can be powered by one of the following sources:
- Solar power
- Wind
- Specialized crops that are grown to produce electricity
- Anaerobic digestion of animal or food waste
- Fuel cells or microturbines that run on renewable fuels
- Hydropower
Community Solar Projects in Illinois
Are you interested in solar energy, but there’s no way to install panels? That’s not a problem in Illinois! The community solar renewable energy program allows you to go solar even without installing panels on your property.
This was made possible by the Future Energy Jobs Act of 2016 (it created a community solar program for Illinois) and the Climate and Equal Jobs Act of 2021 (CEJA) (strengthened it by providing financial support for 250 MW for prospective projects and 150 MW per year for future projects).
This is how community solar programs came into being, allowing residents to connect to the nearest solar power plant (solar garden) for a monthly subscription fee. And in return, receive a discount on their electricity bill without having to install panels on their property.
It goes like this:
- Subscribers enter into a contract that helps finance the installation of solar panels anywhere on a nearby property.
- Subscribers make monthly upfront payments.
- Depending on the terms of the agreement, the utility company will rebate the subscriber’s electric bill equal to this output.
These projects allow everyone to use electricity and benefit from it, making solar energy affordable for both renters and homeowners in the state.
Illinois solar renewable energy credits are plentiful, and it can be easy to get lost in their variety.
Looking to install a solar system in Chicago? Get your free solar quote in a matter of minutes!
FAQ
How do Illinois SRECs work?
Illinois SREC program – solar renewable energy credits that can be sold to utilities and other entities required to meet renewable energy standards.
Home and business owners with panels can sell excess electricity in the SREC market. They provide an additional source of revenue, making solar investments more attractive.
What are the key changes to the SREC program?
The changes to the Illinois SREC program consist of adjustments to the pricing structure and new compliance requirements for energy producers.
They are intended to stabilize the market and ensure the long-term sustainability of the SREC Illinois program. Participants should keep an eye on the changes to maximize the benefits of the program.
How can homeowners in Chicago benefit from participating in the SREC market?
Homeowners in Chicago can earn additional income from SRECs Illinois by generating electricity from their solar panels and selling it.
