Illinois Solar Renewable Energy Credits (SRECs)

Solar is hot in Illinois! Here’s why: Illinois is one of just a few states that pay you to generate clean electricity from solar and wind renewable energy systems. The incentive is called a Solar Renewable Energy Credit (SREC). It’s a perfect incentive for businesses, farms, homes and other building owners to take advantage of.

Illinois SRECs help those solar system owners recoup their investment. Additionally, SRECs help bring a cleaner and healthier environment to communities across the state of Illinois. Learn how below.

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How do Illinois SRECs work?

Solar system owners can create SRECs from the energy produced by their solar panels and arrays. One Illinois SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated, or one megawatt (MWh). So, in other words, every time a MWh is produced by a solar array, another SREC comes into existence.

For up to 5-years, those owners can sell their SRECs generated in Illinois into a market set up by the Illinois Power Agency (IPA). These 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.

Also, don’t forget about the 30% Solar Federal Tax Credit that is still available for solar owners as well. 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. The Energy Policy Act of 2005 created the 30% ITC for commercial and residential solar energy systems.

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While it may sound too good to be true, it’s not!

Between the 30% federal tax credit and the SREC incentive, up to 50 to 60% of your solar system could be paid for from these two incentives alone. Your payback is greatly reduced.

Illinois Solar Renewable Energy Credits help the state meet Renewable Portfolio Standards (RPS), which is a regulatory mandate that sets goals for generating a percentage of Illinois’ overall electricity from renewable energy. The Illinois SREC program could potentially cover 20% to 40% of your total solar investment!

SRECs accrue as solar electricity is generated, and are typically paid out quarterly or other intervals defined by the state for up to 5-years. Ultimately, these Illinois solar incentives help to bring a benefit to the state’s community with long-term energy security and a cleaner, healthier environment.

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Don’t live in Illinois?

If you live in a state surrounding Illinois that doesn’t have an SREC program, your project may still be eligible. If you’re in this situation, you can potentially sell the SRECs that your solar system generates into the Illinois SREC market.

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.

 

Contact Tick Tock Energy to get a quote today!

If you’re ready to take advantage of this highly beneficial Illinois solar incentive, give us a call or contact us today. Whether you’re already a proud owner of a solar array system or you’re thinking about making the solar investment, contact us today to learn more.

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.

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