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.
In the new 2019 program, owners will sell their SRECs generated in Illinois for a 15-year contract 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 26% Solar Federal Tax Credit (tsepping down to 22% in 2021 and then phasing out after) 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 ITC for commercial and residential solar energy systems.