Illinois ranked 5th among the states with the lowest average power bills, according to the U.S. Energy Information Administration (EIA) statistics. But despite this, investment in the solar system is flourishing and increasing quickly in the "Prairie State." For one, installing solar panels is still low-cost and best. It’s incorporated with the numerous solar incentives and rebates the state offers for property owners to install renewable energy.
If you want to learn more about why investing in a solar system is a wise decision, explore below for all the solar incentives and rebates you can achieve.
The Renewable Portfolio Standards (RPS), or the Environmental Portfolio Standard (EPS), are remarkable in Illinois. Illinois RPS obliges utility companies and providers to acquire a specific proportion of electricity from renewable sources. According to the standards, utility companies must ensure that 25% of the State's energy comes from renewable sources by 2025, with wind power accounting for 75% and solar systems accounting for 6%. Utility companies must pay high fees if these standards are still met. So naturally, instead of paying the fees, utility companies and providers will offer solar incentives for property owners to invest in solar panels.
A solar carve-out is the portion of energy in a state that needs to come from solar by a specific date. It’s incorporated in most RPSs since the program is leaning toward reducing renewable technologies' costs. The solar carve-out offers solar incentives for the distribution of reduced technologies. RPS, above, is about all renewable energy sources, but the solar carve-out is a requirement just for solar. The solar carve-out in Illinois will be 1.5% by 2025.
A resident bonus is a substantial net metering law for the State of Illinois. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility. This allows customers to offset the cost of the power they draw from the utility with credits they earn on their production. If your system produces more energy than you need, the excess power is sold to the grid, which you see as a credit on your power bill. Net metering guarantees that a property owner will profit from the entire cost of their solar system and is an excellent way to harmonize electricity generation and expenditures.
Illinois has stringent interconnection standards that dictate how solar and other electrical generation systems can be connected to the grid. These standards essentially provide a way to "plug in" such systems to the grid. The robustness of these standards has made it simpler for utility companies to offer net metering.
Fortunately, the State offers Performance-Based Incentives (PBIs) for solar energy, which depend on your system's actual amount of power. These incentives, known as Power Performance Payments, are calculated based on the kilowatt-hours (kWh) or BTUs your renewable energy system produces. The electricity generated is considered Solar Renewable Energy Credits (SRECs), which have varying values based on the principles of supply and demand. SRECs provide a great way to offset the costs of your system.
In Illinois, investing in solar panels for your property will be rewarding since your taxes will not increase. Everyone who installs solar panels on their property will be exempted from paying property taxes corresponding to the expansion of property value as an outcome of including the solar system. Adding a solar system to your home or property will not result in a reassessment of your property's value. Therefore, you will continue to pay property taxes based on the pre-existing value of your home.
Even though straight cash rebates for a solar system are not currently available in the state of Illinois, it does provide an exceptional solar package called "Illinois Shines." It compensates the property owner's solar panels on a lump sum according to the projected worth of the energy their solar systems will generate in the long run.
In addition to the attractive Illinois solar incentives, rebates, and exemptions offered in Illinois, you can also benefit from a substantial tax credit from the Federal government. The Solar Investment Tax Credit (ITC) amounts to 26% of the solar system's cost and can be subtracted from your Federal income tax. However, this tax credit only applies to those who purchase their system through cash or a loan, not those who lease it. If you lease the system, the incentives will be directed toward the third-party owner. This is a compelling reason to consider buying, rather than leasing, a solar system.
Suppose you’re ready to manage and save on your electrical bills, safeguard your property from power interruptions, and lessen outflows of greenhouse gases. In that case, we advise you to search for a reputable solar company to explore the best options for making that big switch to solar.
EnergyBillCruncher is an unbiased and free online resource created to benefit homeowners. Join our newsletter & stay up-to-date with the latest solar news.