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Illinois Solar Incentive Programs: Renewable Energy Credits (RECS)
What is a Renewable Energy Credit?
One Renewable Energy Credit (“REC”) is equivalent to 1 megawatt-hour of renewable electricity produced. RECs represent the environmental value of the electricity generated from renewable resources like solar panels, but not the electricity itself. Whoever owns the RECs has the right to say they used that renewable power. In Illinois, utilities must purchase RECs to meet their obligation to supply a certain amount of power from renewable energy projects to comply with the Illinois Renewable Portfolio Standard (“RPS”). The RPS is a policy designed to increase the development and use of renewable energy sources for electricity generation. RECs procured from the state solar programs help meet the RPS targets. For more information on RECs, see this explanatory video.
How are RECs used as incentives in Illinois’ solar programs?
RECs are a key driver in both solar programs. A home solar photovoltaic system might generate 50-200 RECs over 15 years. By participating in Illinois Shines or ILSFA, the AV sells the RECs from an eligible solar project to an Illinois electric utility or the IPA and receives payments for the value of 15 or 20 years of RECs. REC payments reduce the cost of the system to customers and support the long-term growth of the Illinois solar market. Selling RECs will not affect the photovoltaic system’s production or net metering credits.
Each year, the solar programs publish REC prices, which vary based on project location, size, and type. Proceeds from REC sales are an important source of project revenue. Project REC payments scale with the system size and generation. For example, a 6 kW AC residential system may yield $9,000 in Illinois Shines REC payment, but close to $20,000 in Illinois Solar for All. A 200 kW system for a public school may yield a REC payment of over $350,000 in Illinois Shines, while a similarly sized system at a non-profit social service agency may be eligible for a REC payment of over $420,000 in Illinois Solar for All. As a reminder, REC payments through Illinois Shines and Illinois Solar for All are only available to Approved Vendors.
Industry Associations
Industry associations provide important services to small and emerging businesses such as networking opportunities to connect with peers and industry leaders, leading to valuable partnerships, collaborations, and business opportunities.
Associations advocate for the interests of their members and provide a voice to influence policy and regulations. Associations provide industry information, market trends and research, and they may also offer training programs to enhance the professional development of members.
Below are a few solar industry associations that may be of interest to a solar business:
• The Solar Energy Industry Association is a national trade association for solar and solar + storage industries.
• The Coalition for Community Solar Access is a national trade association representing community solar companies, businesses, and nonprofits working to expand customer choice and access to community solar.
• The Illinois Solar Energy and Storage Association is the state trade association for the Illinois solar and storage industry.
Need assistance or have questions?
For assistance or questions on the Illinois Shines program, contact Program Administrator (Energy Solutions) at admin@illinoisshines.com
For assistance or questions on the Illinois Solar for All program, contact Program Administrator (Elevate) at info@illinoisSFA.com