Solar Surge Expected as SREC Incentive is Back! New Energy Bill signed by Illinois Governor
Solar is hot in Illinois! The highly popular and successful solar Renewable Energy Credit Incentive, or SREC program, will continue after a recent hiatus. On September 15, 2021, Governor Pritzker signed the Climate & Equitable Jobs Act, which includes new funding for the Illinois Shines SREC program, a massive incentive for solar buyers in Illinois. This new energy legislation also calls for Illinois’ power grid to reach 40% renewables by 2030 and 50% renewables by 2040 and seeks to put 1 million electric vehicles on Illinois roadways by 2030.
Help Diversify the Power Grid with Solar and Get a GREAT Return on Investment
- Between the 26% Federal tax credit and the renewed SREC incentive, up to 60% of your solar system (or more) could be paid for from these two incentives combined. For a reminder regarding how the federal tax credit incentive works, check out our past blog post here.
- The federal tax credit, coupled with the Illinois SREC incentive, can reduce payback time considerably for your solar purchase. 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 for residential and business applications! See our Illinois SREC page for additional details.
What Are the Key Changes to the SREC Program?
The overall Illinois Shines program addresses three areas:
- Small Distributed Generation (DG) from 0 to 25 kW (AC)
- Large Distributed Generation (DG) from >25 kW up to 2,000 kW (AC)
- Community Solar
Distributed Generation, or DG for short refers to “behind the meter” solar systems, intended to generate electricity for the home or building they are connected to. Think residential, farm, business, and related facility applications.
The new SREC program continues to use the Adjustable Block format and the SREC price is set by block. In most cases, the old SREC incentive exhausted blocks 1, 2, 3 and 4. The price drop between blocks is 4%. The new SREC incentive will start at Block 5 or 4% lower than the last block.
Community Solar are typically large systems from a minimum size of 500 kW up to 2 MW (AC) that feed into the grid, generating power for subscribers. See our Community Solar page for more info. For size comparison, a 1,000 kW, or 1 MegaWatt (MW) community solar plant would require around 3 to 5 acres and 2 MW, potentially up to 10 acres. Community solar is different than utility-scale solar projects, which are typically 10 to 100 acres.
Solar is Easy to Finance! No Capital / No worries – We can Help!
With all these lucrative incentives to go solar, some folks still worry about how to overcome the upfront installation cost. Both the federal tax credit and SREC aren’t incentives that are immediately realized. The SREC incentive can take several months to receive after a system is energized. The federal tax credit depends on your tax situation and could take months or longer to fully monetize. Tick Tock Energy works with several top solar lenders for both residential and commercial financing. We can structure a financing solution that works best for you. With low interest rates, great incentives, and energy savings, the resulting cash flow can be compelling. Check our commercial financing page or residential financing page to find out more.
Contact Tick Tock Energy to get a quote today!
The Illinois SREC plus Federal Tax Credit makes solar very appealing. If coming up with the initial capital a challenge, we offer great financing options to eliminate this concern. Don’t delay, enjoy the benefits of generating electricity from the sun! If you have more questions or would like to see a quote for your home, farm or facility, our experts will be happy to discuss further.
If you’re ready to apply for this beneficial Illinois solar incentive, or if your project is on the waitlist first seeking confirmation of funding, now is the time to move forward. Contact us today by phone at (217) 994-9020 or via our contact us page.
Visit our Portfolio page to see our past work and to get an idea of what solar could look like for your home, farm, or business.