Illinois Solar Renewable Energy Credits (SRECs)
In Illinois and other select states, SRECs provide an outstanding solar incentive that helps an owner recoup a solar system’s investment. SRECs have been created to help States meet Renewable Portfolio Standards (RPS) which set goals for generating a percentage of that states overall electricity from renewable energy. In Illinois, for example, an SREC can potentially cover 20% to 40% of the total solar investment.
Typically, one SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated. SRECs accrue as solar electricity is generated, and are typically paid out quarterly or other interval defined by each State.
If your state does not have an SREC program, your project may still be eligible to sell the SRECs that your solar system generates into another State’s market. For example, all states surrounding Illinois such as Missouri, Indiana, Kentucky, Wisconsin, and Iowa can potentially sell their system’s SRECs into the Illinois market.