Unlock the Power of Solar in Illinois with Generous Incentives and Rebates
Despite having the 5th lowest average power bills in the nation, according to the U.S. Energy Information Administration (EIA), Illinois is witnessing a surge in solar energy adoption. This surge is fueled by the state’s numerous solar incentives and rebates, making solar panel installation an affordable and smart choice for property owners seeking renewable energy solutions.
If you’re curious about why investing in a solar system is a wise decision, read on to discover the exciting solar incentives and rebates available in the Prairie State.
Illinois Solar Incentives, Rebates, and Benefits Galore
Illinois Renewable Portfolio Standards (RPS)
The Renewable Portfolio Standards (RPS), also known as the Environmental Portfolio Standard (EPS), are a driving force behind Illinois’ renewable energy initiatives. The Illinois RPS mandates utility companies and providers to source a specific portion of their electricity from renewable sources. By 2025, they must ensure that 25% of the state’s energy comes from renewable sources, with wind power contributing 75% and solar systems accounting for 6%. Failure to meet these standards results in hefty fines for utility companies. To avoid these penalties, they offer attractive solar incentives to encourage property owners to invest in solar panels.
Illinois RPS Solar Carve-Out
A solar carve-out is a specific requirement within the RPS that dictates the portion of energy that must come from solar by a given date. This provision aims to accelerate the adoption of solar technology by offering incentives for its distribution. While the RPS covers all renewable energy sources, the solar carve-out focuses solely on solar. In Illinois, the solar carve-out target is 1.5% by 2025.
Net Metering: A Resident Bonus
Illinois boasts a robust net metering law, providing a significant advantage for residents. Net metering is a system that allows solar panels or other renewable energy generators to be connected to the public utility grid. This connection enables customers to offset the cost of the power they draw from the utility with credits earned from their production. If your system generates more energy than you need, the excess power is sold back to the grid, resulting in credits on your power bill. Net metering ensures that property owners can fully benefit from their solar system investment, harmonizing electricity generation and expenditures.
Interconnection Standards in Illinois
The state has stringent interconnection standards that govern how solar and other electrical generation systems can be connected to the grid. These standards provide a streamlined process for “plugging in” such systems, making it easier for utility companies to offer net metering.
Illinois Solar Power Performance-Based Incentives (PBI)
Fortunately, Illinois offers Performance-Based Incentives (PBIs) for solar energy, which are based on your system’s actual power output. These incentives, known as Power Performance Payments, are calculated based on the kilowatt-hours (kWh) or BTUs your renewable energy system produces. The electricity generated is considered Solar Renewable Energy Credits (SRECs), which have varying values based on supply and demand principles. SRECs provide an excellent way to offset the costs of your solar system.
Illinois Solar Property Tax Exemption
Investing in solar panels for your property in Illinois comes with an added bonus – your property taxes won’t increase. Anyone who installs solar panels on their property is exempt from paying property taxes corresponding to the increase in property value resulting from the solar system installation. Adding a solar system to your home or property will not trigger a reassessment of your property’s value, meaning you’ll continue to pay property taxes based on the pre-existing value of your home.
Illinois Solar Rebates
While direct cash rebates for solar systems are not currently available in Illinois, the state offers an exceptional solar program called “Illinois Shines.” This program compensates property owners for their solar panels with a lump sum based on the projected value of the energy their solar systems will generate over the long run.
Don’t Forget About the Federal Tax Credit, Illinois!
In addition to the attractive Illinois solar incentives, rebates, and exemptions, you can also benefit from a substantial tax credit from the Federal government. The Solar Investment Tax Credit (ITC) amounts to 26% of the solar system’s cost and can be deducted from your Federal income tax. However, this tax credit only applies to those who purchase their system outright through cash or a loan, not those who lease it. If you lease the system, the incentives will be directed toward the third-party owner. This is a compelling reason to consider buying, rather than leasing, a solar system.
Illinois Solar Incentives and Rebates at a Glance
If you’re ready to take control of your electrical bills, protect your property from power outages, and reduce greenhouse gas emissions, we recommend exploring options with a reputable solar company to make the switch to solar energy in Illinois.
