Solar Renewable Energy Credits (SRECs)
Illinois’ renewable portfolio standard (RPS) means that the state is committed to producing 25% of its electricity from renewable resources by 2025. That’s a great goal, and to make it happen, the state has a program that rewards homeowners for helping Illinois reach that target. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one Solar Renewable Energy Credit (SREC) that you can then sell in the market, creating a nice income stream for the life of the system.
Illinois net metering
Thanks to Illinois’ net metering policy, your utility will buy back any excess electricity your solar system produces. Net metering ensures that you benefit from the full value of your solar panels and is a great way to balance out your electricity production and consumption, which do not always happen at the same time. For example, during the day you produce more but use less.
Illinois solar tax breaks
These two tax incentives offered in Illinois can make going solar even more affordable:
Property tax break
Worried about your property tax bills going up because of the value your solar system will add to your home? Don’t be. The Special Assessment for Solar Energy Systems means that you will be taxed as if the panels were not even there.
The Investment Tax Credit: another great Illinois incentive
Not only does the state of Illinois want to help you go solar –the federal government does, too. In addition to the policies mentioned above, you can reduce the cost of your solar energy system by 30 percent with the federal Investment Tax Credit (ITC). Keep in mind that the ITC applies only to those who buy their system with a cash purchase or solar loan and that you must have enough income for the tax credit to be relevant (though of course the credit can be split over multiple years).
Here is an example for a Solar system that costs roughly $60,000 in IL – the federal tax credits is around 18,000 and the IL State incentives are around $15,000 – so that is more than $33,000 free money. If you sell the property you can sell it with $60,000 more because that is what the solar system costs. By going solar you increased the value of your property and if you sell it tomorrow you could have made $32,000 instant profit. If you wait, you will lose the $32,000 profit…, because the incentives will disappear. It is on a first come, first serve basis for the SRECs. For instance, if you go solar in California you get only Federal tax credit, the CA state incentives have been used up by the first people that went solar… Tip: Usually the first ones to find out are the ones that benefit the most. Get a free solar consultation today to find out if your home qualifies to go solar.