Changes To The Illinois Srec Program In 2022

The Illinois Solar Renewable Energy Credit (SREC) Program has been a vital incentive for promoting solar energy usage in the state since its inception in 2008. However, as we approach the New Year, changes to the program are on the horizon. These changes aim to further support the growth of clean energy and address concerns raised by stakeholders. In this article, we will delve into the modifications being made to the program and how it will impact solar energy users in Illinois. Understanding these changes is crucial for both current and future participants of the program, as it will not only affect their financial benefits but also contribute to the state’s renewable energy goals.

Key Points about IL’s Solar Incentive Program

The state of Illinois has made significant changes to its Solar Renewable Energy Credit (SREC) program for the year 2022. The SREC program is a market-based mechanism that provides financial incentives to owners of solar energy systems. These incentives are based on the amount of clean electricity that the system produces. The program is designed to encourage the growth of solar energy in the state and helps in achieving the goals of the Illinois Renewable Portfolio Standard (RPS). The RPS requires that 25% of the state’s electricity come from renewable sources by 2025, with a specific goal of 6% coming from solar energy. With the changes made to the SREC program, the state hopes to make solar energy more accessible and affordable for its residents, while also promoting sustainable energy production.

1. Changes in the incentive structure

One of the most significant changes to the SREC program in 2022 is the transition from a fixed incentive rate to a performance-based incentive (PBI) structure. Under the previous system, solar system owners received a fixed incentive for every megawatt-hour (MWh) of electricity produced. However, under the new PBI structure, the incentives will be based on the actual performance of the system, which means that the more electricity a system produces, the higher the incentives it will receive. This change aims to provide more accurate and fair incentives to solar system owners and encourages them to maximize the production of clean energy.

2. Increase in the incentive rate

In addition to the change in structure, the state has also increased the incentive rate for solar energy systems. Under the previous system, the incentive rate was $15 per MWh, but under the new PBI structure, it will increase to $18 per MWh. This increase in the incentive rate will make solar energy systems more financially attractive and help offset the costs of installation and maintenance. It is expected to encourage more homeowners, businesses, and institutions to invest in solar energy, leading to a significant increase in clean energy production in the state.

3. Expansion of the program

Another significant change to the SREC program is its expansion to include medium and large-scale solar energy systems. Previously, the program was only available to small-scale systems with a capacity of 10kW or less. However, starting in 2022, medium and large-scale systems with a capacity of up to 2MW will also be eligible for incentives. This expansion will provide more opportunities for large businesses and institutions to invest in solar energy, further promoting the growth of renewable energy in the state.

4. Increased transparency and accountability

The new changes to the SREC program also aim to increase transparency and accountability in the system. Under the previous system, the incentives were distributed on a first-come, first-serve basis, leading to a rush of applications as soon as the program opened. However, under the new system, the incentives will be distributed through a lottery system, ensuring a fair and equal distribution of incentives among all eligible applicants. This change will also help prevent the system from running out of funds and provide a more stable and predictable process for solar system owners.

5. Impact on the solar industry

The changes to the SREC program are expected to have a significant impact on the solar industry in Illinois. With the increase in incentives and the expansion of the program, there will be a surge in solar installations, providing a boost to the industry. This increase in demand will also create new job opportunities, leading to economic growth in the state. The changes also aim to make solar energy more accessible for low-income communities, promoting energy equity and creating a more inclusive clean energy economy.

the changes to the Illinois SREC program in 2022 are a positive step towards promoting the growth of solar energy in the state. With the new PBI structure, increased incentives, and expansion of the program, more residents, businesses, and institutions will be able to invest in clean energy, contributing to the state’s renewable energy goals. These changes also demonstrate the state’s commitment to a sustainable and greener future for its residents.

Introduction

The Illinois solar renewable energy credit (SREC) program was established in 2016 as a way to incentivize the adoption of solar energy in the state. Under the program, solar system owners earn credits for the electricity their systems produce, which can then be sold on the market to utility companies. This not only helps to offset the cost of installing a solar system, but also supports the growth of renewable energy in Illinois. However, as with any program, changes and updates are necessary to ensure its continued success. In this article, we will discuss the changes that are being made to the Illinois SREC program in 2022 and how they will impact solar energy in the state.

Phase Out of SREC Program

One major change to the Illinois SREC program in 2022 is the gradual phase out of the program. Originally, the program was designed to run until 2027, but due to its success and the increasing demand for solar energy, the Illinois Power Agency (IPA) has decided to end the program earlier. Starting in January 2022, the program will be in its final phase and will only accept new participants until the end of the year. This means that those who are interested in installing a solar system in Illinois should act quickly in order to take advantage of the program’s incentives.

Changes in SREC Prices

Another important change to the Illinois SREC program in 2022 is the decrease in SREC prices. Currently, the SREC price is set at $75 per credit, but starting in January 2022, the price will decrease by $5 per year until it reaches $40 per credit in 2024. This decrease in price may seem concerning to solar system owners, but it is part of the plan to phase out the program and make way for a new incentive program that will replace the SREC program.

New Solar Rebate Program

In addition to the phase out of the SREC program, the IPA has also introduced a new solar rebate program that will begin in January 2022. This new program will provide upfront rebates to eligible solar system owners, making it easier and more affordable to install solar panels. The rebate amounts will vary depending on the size and type of system, but they are expected to be significantly larger than the SREC payments. This new program is designed to encourage more homeowners and businesses to adopt solar energy and reach the state’s renewable energy goals.

Impact on the Solar Industry

These changes to the Illinois SREC program will have a significant impact on the solar industry in the state. While the decrease in SREC prices may be a cause for concern for current solar system owners, the introduction of the new solar rebate program will provide a new and more beneficial incentive. This will likely lead to an increase in the demand for solar energy and create more job opportunities in the solar industry. Additionally, the phase out of the SREC program will free up funds for other renewable energy initiatives in Illinois, further supporting the growth of sustainable energy in the state.

the Illinois SREC program has been a successful incentive program for the adoption of solar energy in the state. However, in order to continue supporting the growth of renewable energy, changes are necessary. The phase out of the SREC program and the introduction of a new solar rebate program in 2022 will have a significant impact on the solar industry and hopefully lead to a more sustainable future for Illinois. It is important for those interested in installing a solar system to act quickly before the SREC program comes to an end, and to take advantage of the new rebate program to make the switch to solar energy more affordable.

FEJA and the Adjustable Block Program

In 2017, the Future Energy Jobs Act (FEJA) was passed in Illinois, with the aim of increasing renewable energy usage and creating jobs in the clean energy sector. As part of this legislation, the Adjustable Block Program (ABP) was established to support the development of solar energy projects in the state. The program offers incentives to renewable energy developers and provides a structure for the sale of solar renewable energy credits (SRECs) in Illinois. However, in 2022, significant changes will be made to the Illinois SREC program, particularly to the Illinois Shines block structure, block groups, and block categories.

Illinois Shines Block Structure

The Illinois Shines program serves as the umbrella for various renewable energy programs in the state, including the ABP. Under the current Illinois Shines block structure, there are four blocks in which SRECs are sold. Block 1 represents smaller systems of less than 10kW, while Block 2 includes systems between 10kW and 25kW. Block 3 covers systems between 25kW and 2MW, and Block 4 includes larger systems above 2MW. However, starting in 2022, there will be a new addition to this block structure �Block 5.
Block 5 will be aimed at promoting community solar projects, which are solar installations shared by multiple customers. This block will have its own set of rules and regulations, including a requirement for local and diverse workforce representation in these projects. This addition to the block structure will provide more opportunities for community solar projects in Illinois, particularly in low-income and disadvantaged communities.

Block Groups

Another significant change to the Illinois SREC program in 2022 is the introduction of block groups. Currently, projects are placed in their respective blocks based on the date they are approved by the Illinois Power Agency (IPA). However, with the implementation of block groups, projects will be placed in a group based on the date they are interconnected to the grid. This change will allow for a more organized and fair distribution of SRECs in the state.

Block Categories

The ABP currently has three block categories �new distributed generation, new community solar, and non-new projects. However, in 2022, there will be a new category added to this list �the underserved category. This category will be reserved for projects in low-income and disadvantaged communities, with a focus on increasing access to solar energy in these areas. Projects in the underserved category will have a higher base price for their SRECs, providing more incentives for developers to invest in these communities.
the Illinois SREC program will undergo significant changes in 2022, with the addition of a new block, block groups, and a new block category. These changes are aimed at promoting renewable energy development in the state and providing more opportunities for community solar projects and underserved communities. With these changes, Illinois is on track to meet its renewable energy goals and make a significant impact in the clean energy sector.

How much will you save with SRECs in Illinois?

In 2022, the state of Illinois is making significant changes to its Solar Renewable Energy Certificate (SREC) program. This program is designed to incentivize the use of solar energy by providing financial benefits to individuals and businesses who install solar panels. With the changes being implemented, it is important to understand how much money you can potentially save by participating in the SREC program.
What are SRECs?
SRECs are tradable credits that are earned by solar panel owners for each megawatt hour (MWh) of electricity their panels produce. These credits can then be sold to utility companies, who are required by law to source a certain percentage of their electricity from renewable sources. By purchasing SRECs, these companies can meet their renewable energy requirements without having to install their own solar panels.
Previous SREC program in Illinois
Prior to the changes in 2022, Illinois had a fixed-price SREC program. This meant that solar panel owners were guaranteed a fixed rate for their SRECs, regardless of market fluctuations. The fixed price was set at $156 per SREC, which was considered to be quite high compared to other states with SREC programs.
Changes in 2022
Starting in 2022, Illinois is transitioning to a market-based SREC program. This means that the price of SRECs will now be determined by supply and demand, and can potentially fluctuate. The fixed price of $156 per SREC will no longer apply. This change was made in anticipation of increased solar energy production and a larger number of participants in the SREC program.
Potential savings with SRECs
Under the previous fixed-price program, a typical residential solar panel system in Illinois could generate around 10 SRECs per year. This would equate to a savings of $1,560 per year. However, with the transition to a market-based program, the potential savings could vary. If the demand for SRECs is high and the price remains consistent, the savings could be similar to the previous fixed-price program. However, if the market price for SRECs decreases, the savings may be less.
Maximizing savings
To maximize savings with SRECs in Illinois, it is important to have a system that is properly sized and located in an area with high solar energy potential. It is also crucial to stay informed about the market price of SRECs and to time the selling of your credits accordingly. Additionally, participating in net metering, which allows you to sell excess electricity back to the grid, can also increase your savings with SRECs.
In conclusion
The changes to the SREC program in Illinois in 2022 may bring some uncertainty, but it also has the potential to increase the financial benefits for solar panel owners. While the fixed price of $156 per SREC may no longer be guaranteed, there is still the potential for significant savings. By staying informed and maximizing your solar energy production, you can take advantage of the SREC program and contribute to a cleaner and more sustainable future for Illinois.

How to Earn SRECs in Illinois

The Illinois Solar Renewable Energy Credit (SREC) program was established in 2017 to support the growth of renewable energy in the state. Under this program, solar energy system owners can earn SRECs for every megawatt-hour (MWh) of electricity their system produces. These SRECs can then be sold on the market to utility companies that need to meet their renewable energy requirements. With the recent changes to the Illinois SREC program in 2022, it is important for solar system owners to understand how they can earn SRECs and maximize their earnings.

Install a Qualified Solar System

First and foremost, in order to participate in the Illinois SREC program, you must have a qualified solar energy system installed. This includes solar panels, inverters, and any other necessary equipment that meets the eligibility requirements set by the Illinois Power Agency. The system must also be installed by an approved installer and be certified by the Illinois Commerce Commission. Without a qualified solar system, you will not be able to earn SRECs.

Register with the Illinois SREC Program

Once your solar system is installed and certified, you must register it with the Illinois SREC program. This can be done through the Illinois Power Agency’s SREC Registry, which is an online platform where solar system owners can track their SRECs and manage their accounts. During the registration process, you will need to provide information about your system and the installer, as well as your contact and banking information for SREC payments.

Track and Report Your SRECs

In order to earn SRECs, you must accurately track and report the production of your solar system. The Illinois SREC program requires that you report your system’s energy generation on a monthly basis through the SREC Registry. This can be done manually by entering your system’s output or automatically through a production meter installed on your system. It is important to regularly track and report your SRECs in order to ensure timely payments and compliance with program requirements.

Sell Your SRECs

Once your SRECs are generated and reported, you can then sell them on the market. The Illinois SREC program allows you to choose from either a fixed price or a market-based price for your SRECs. The fixed price option locks in a set price for your SRECs for a 15-year period, while the market-based option allows you to sell your SRECs at the current market rate. Whichever option you choose, you will need to submit a sale offer through the SREC Registry and wait for a buyer to accept your offer.

Stay Informed About Program Changes

With the recent changes to the Illinois SREC program in 2022, it is important to stay informed about any updates or modifications that may impact your earnings. The Illinois Power Agency regularly publishes information and updates on their website, and it is recommended to regularly check for any changes to program rules or requirements. Additionally, it may be beneficial to consult with a solar energy professional or financial advisor to ensure that you are maximizing your earnings from the SREC program.

Earning SRECs in Illinois can be a great way to incentivize the generation of solar energy while also providing a source of income for solar system owners. By following the steps outlined above and staying informed about program changes, you can successfully participate in the Illinois SREC program and contribute to the growth of renewable energy in the state.

1. What specific changes are being made to the Illinois SREC program in 2022?

The Illinois SREC (Solar Renewable Energy Credit) program is undergoing some significant changes in 2022 in order to further promote and incentivize solar energy production in the state. Some of the key changes being made include:

• Increase in SREC prices: The SREC prices are set to increase from the current $15 per credit to $20 per credit in 2022. This increase in price aims to make solar energy production more financially appealing to homeowners and businesses.
• Increase in SREC requirements: In order to meet Illinoisâ€?Renewable Portfolio Standards, the number of SRECs required for energy suppliers will increase in 2022. This means that there will be a greater demand for SRECs, further driving up their value.
• Expansion of eligible solar projects: The Illinois SREC program will now include medium and large-scale solar projects, in addition to the current residential and small-scale projects. This expansion will allow for more solar energy to be generated and contribute to the state’s renewable energy goals.
• Extended SREC lifetime: SRECs generated in 2022 will have a lifetime of 5 years, instead of the current 3 years. This will provide more stability and predictability for solar energy producers.
• Transition to a market-based system: Starting in 2022, the Illinois SREC program will transition to a market-based system, where SREC prices will be determined by supply and demand. This change aims to create a more sustainable and efficient market for SRECs.

These changes to the Illinois SREC program in 2022 demonstrate the state’s commitment to promoting renewable energy and reducing reliance on fossil fuels. By increasing incentives and expanding eligibility, it is expected that there will be a significant growth in solar energy production in Illinois in the upcoming years.

2. How will these changes affect current SREC owners and future participants?

These changes to the Illinois SREC program are likely to have a significant impact on both current SREC owners and future participants. For current SREC owners, the changes may bring about adjustments to their existing contracts, pricing structures, and overall revenue potential. It is possible that some may see a decrease in SREC values due to the new market-based pricing system, while others may benefit from the increased demand for SRECs under the new requirements.

As for future participants, the changes in the program may also affect their decision to invest in solar energy. The lower minimum system size requirement may attract more small-scale solar projects, leading to an increase in competition for SRECs. This could result in lower SREC values in the future, making it less financially viable for new solar installations. Additionally, the new requirement for a five-year contract may also impact the feasibility of solar projects, as it adds a longer commitment for SREC payments.

these changes to the Illinois SREC program may bring about both positive and negative consequences for both current and future participants. It will be important for SREC owners and potential participants to closely monitor the market and adjust their strategies accordingly in order to maximize the benefits of the program.

3. Are there any new eligibility requirements for participating in the SREC program?

In 2022, the Illinois SREC program will undergo significant changes, which may affect the eligibility requirements for participants. So, the question arises: Are there any new eligibility requirements for participating in the SREC program?

The answer is yes. The updated program will introduce new eligibility criteria, particularly in terms of the types of renewable energy systems that can participate. The new requirements are aimed at promoting the use of newer, more efficient technologies and ensuring a more diverse portfolio of projects.

One of the major changes to the eligibility requirements is the introduction of a minimum system size for solar projects. Starting in 2022, only installations with a minimum capacity of 10 kilowatts will be eligible to participate in the SREC program. This requirement is expected to encourage the development of larger, utility-scale solar projects, which can generate a higher number of SRECs and help Illinois meet its renewable energy goals.

Additionally, community solar projects will now be eligible to participate in the SREC program. This new provision is aimed at promoting the development of solar projects in low- and moderate-income areas, providing access to renewable energy for communities that may not have the means to install solar panels on their own property.

Another new eligibility requirement is the inclusion of energy storage systems in the program. This means that solar projects with integrated storage technology will be able to generate and sell SRECs for both the electricity generated and stored. This change is expected to incentivize the use of energy storage and help balance the intermittent nature of solar energy.

the Illinois SREC program will have new eligibility requirements in 2022, including a minimum system size, the inclusion of community solar projects, and the eligibility of energy storage systems. These changes are aimed at promoting the use of newer technologies and promoting the development of renewable energy in a more diverse and equitable way.

4. Will the SREC market be impacted by these changes?

It is no surprise that many are wondering whether the changes to the Illinois SREC program in 2022 will have an impact on the SREC market. After all, the SREC market has been a vital part of the state’s push towards renewable energy and meeting its clean energy goals. With the proposed changes, it is natural to question how it will affect the market.

Firstly, the changes to the Illinois SREC program could potentially impact the demand for SRECs. Since the program will now be open to all renewable energy sources, not just solar, there may be an increase in the number of SRECs available. This could potentially lead to a decrease in demand, which could lower the price of SRECs.

Secondly, with the introduction of new regulations and procedures, there may be delays in the issuance and registration of SRECs. This could affect the liquidity of the market, as buyers may hesitate to purchase SRECs if the process becomes more complex and time-consuming.

On the other hand, the changes could also have a positive impact on the SREC market. By opening the program to other renewable sources, it could potentially attract more buyers and increase demand for SRECs. This could lead to a more competitive market and potentially drive up prices.

it is difficult to predict the exact impact of these changes on the SREC market. While there are potential risks, there are also opportunities for growth and development. Only time will tell how these changes will affect the market, but one thing is for sure â€?the Illinois SREC program will continue to play a crucial role in the state’s transition to clean energy.

5. Are there any steps that current SREC owners should take to prepare for the changes in 2022?

As the Illinois SREC program is set to undergo changes in 2022, it is important for current SREC owners to be well-informed and prepared for any potential impacts on their investments. One step that owners can take is to carefully review their current SREC contracts and understand the terms and conditions. This will help them determine if any changes need to be made in order to align with the new regulations. Additionally, it is advisable for SREC owners to stay updated on any announcements or developments regarding the changes to the program. This can be done by regularly checking the official website of the Illinois Power Agency or signing up for newsletters and alerts. it may be beneficial to consult with a renewable energy expert or financial advisor for guidance on how the changes may affect their SREC investments and what steps they can take to maximize their returns. By being proactive and informed, current SREC owners can better prepare for the changes in 2022 and ensure the continued success of their investments.

the changes to the Illinois SREC program in 2022 are expected to have a positive impact on the state’s solar industry. The increased SREC pricing and the extension of the program will provide stability and certainty for solar developers, making it a more attractive investment.
The updated program will also help Illinois meet its renewable energy goals, promoting the growth of clean energy and reducing the state’s carbon footprint. This will not only benefit the environment but also create new job opportunities and economic growth.
Moreover, the changes to the program will also benefit homeowners and businesses who are considering installing solar panels. With the increased SREC prices and the program’s extension, they can expect a faster return on their investment, making solar energy more financially feasible.
However, it is important to note that the SREC market is still subject to fluctuations and changes. It is crucial for the state to monitor and adjust the program accordingly to ensure its effectiveness in achieving its renewable energy goals.
the changes to the Illinois SREC program in 2022 are a step in the right direction towards a brighter and more sustainable future. With increased incentives, stability, and a longer program duration, Illinois is poised to become a leader in solar energy and make significant strides towards a cleaner and greener future.