SREC Incentive Overview and Status as of March 31, 2021
The solar renewable energy credit (or “SREC”) has been an exceptional Illinois solar incentive available through the Illinois Shines program. Unfortunately, the program ran out of funding in late 2020.
The availability of SREC funding was divided between “Group A,” which is largely run by Ameren downstate and “Group B” which is largely located in Northern Illinois in ComEd Utility territory.
There is further division by small projects (under 10 kW AC) and large projects (over 10 kW up to 2,000 kW AC). Lastly, in each group in size category, various price blocks were established and the value of each SREC declined by 4% across each block.
As previous funding by the various groups and size categories has been depleted, projects large and small have been moving to a waitlist. Fortunately, many projects placed on the waitlist over the last few months have still received SREC funding. This is because earlier approved incentive allocations were freed up from cancelled projects. Projects that stall that have not received funding will wait until action occurs in Springfield.
Will more funding for the SREC incentive occur soon?
The short answer is we believe so, but it’s not certain. If you are still considering solar, we strongly encourage you to apply now and get on the waitlist.
You can still proceed with installing your solar power project and risk not receiving the SREC should funding not be restored. Or you can pause and wait for incentive verification first, should funding be restored.
There is a high consumer demand for solar and a great deal of effort statewide to grow solar in Illinois. Few want to see that stop so the feeling is strong that the SREC program will kick-start again.
There is a high level of legislative activity occurring right now in Springfield in the energy and solar sector.
Several competing bills sponsored by many non-solar industry parties are competing for attention. Tick Tock’s position is to support the opens in a new windowPath to 100, which will largely continue the consumer-focused solar incentive homeowners, farms, businesses, and many other market segments have enjoyed.
The current SREC program was created under FEJA, or the Future Energy Jobs Act, which created the Long-Term Renewable Resources Procurement Plan, or LTRRPP. The LTRRPP was the resulting policy design to stimulate growth of renewable energy development to meet the State of Illinois renewable energy goals of generating 25% of the state’s electricity by the year 2025.
The Path to 100, or SB1601
As the current state of SREC funding for solar projects remains in flux, new legislation called the “Path to 100” or SB1601, is the mechanism to help provide new funding and restore previous plans. Solar installers strongly support this legislation and we encourage you to contact your local state representatives to support SB1601. Passing SB1601 will help restore funding and help consumers across the state reap the financial benefit of this excellent incentive.
This Thursday, April 1st at 9AM the Senate Energy and Public Utilities Committee will be holding a subject matter hearing on the Path to 100 Act (SB1601). We encourage you to indicate broad support for the solar industry’s legislation through proponent witness slip activity.
Witness Slipping is EASY.
To get started: visit this page.
On the witness slip fill out:
- Section 1 in its entirety
- Section 2 if you are representing a company or organization ( not ISEA, we have that covered)
- Section 3 check Proponent
- Section 4 check Record of Appearance Only
- Check the Agree to Terms box and submit
So far, The Path to 100 Act has a strong showing in our slip activity. Please pass this request to your co-workers, family, and friends – really anyone who wants to see solar opportunities grow in Illinois.
Afterwards, please check your vote. It’s easy to accidentally choose the wrong action. Make sure you click PROPONENT for SB1601. If you need to make a correction, follow the directions.
Incentive or no incentive, clean energy is more affordable than ever. Great financing options exist that make becoming a solar system owner easy. Electric rates will likely continue to rise as we’re seeing consumer price inflation skyrocket.
Call Tick Tock Energy today at (217) 994-9020 if you would like to discuss a customized quote for your home, farm, or facility. Now is the time to plan your 2021 project!