Solar in illinois

You are eligible for a federal tax credit in the amount of 30% of the total cost of your solar system investment. The average system in in the range of $15,000 on the low end, to up in the $40-60K range for what we would consider larger residential systems. This means that if you invest $30,000, for example, your net cost will really be $21,000 after the $9,000 tax credit is taken. 

In order to qualify to the federal tax credit, you need to be paying federal income taxes. They will pay you back up to the amount that you paid in that year. If you have a larger tax credit than your yearly federal tax amount, the remaining tax credit amount can be used the following year. The solar tax credit is able to roll over 5 consecutive years if the total cannot be used the first year. 

To incentive you to go solar, the utility companies in IL credit homeowners with solar at a 1 to 1 rate. This means that a solar system can eliminate the utility company's bill (other than a low monthly connection fee of around $10) WITHOUT the need for battery storage. With full 1:1 credits, the system banks power all throughout the middle of the day when the system is producing more than the house. Then, in the evening you do draw power from the grid, but the credits you built up in the day simply cancel out the night time bill. Most states do not have a net metering policy that credits you at the same value as what you actually are paying. Net metering will go away as solar participation increases so lock yourself in before the credit value starts to drop. Batteries start at around $10,000 and so do not want until you inevitably need to add at least $10,000 in cost to your total.  

IL has the best SRECS in the entire country. The SRECS can account for about a third of the system's total cost which is incredible. Even better than the amount being so high, the way you are paid out quickly within a year or so makes it even sweeter. 

SRECS are calculated on production values for 15 full years and PAID IN A LUMP SUM AFTER ABOUT A YEAR! This means that many people can have $10-15 thousand dollar SREC checks coming in the mail along with the tax credit separately.

To calculate SRECS, first determine which group you are in. 

Group A - Ameren Illinois, MidAmerican, Mt. Carmel, rural electric co-ops, municipal utilities located in MISO.

Systems Under 10kW receive $78.51 SREC in 2023

Systems 10-25kW receive $66.39 SREC in 2023

Systems 25-100kW receive $57.94 SREC in 2023

Group B- Territories of ComEd, rural electric co-ops and municipal utilities in PJM.

Systems under 10kW receive $82.28 SREC in 2023

Systems 10-25kW receive $71.89 in 2023

Systems 25-100kW receive $62.23 SREC in 2023

So how do we calculate this?

In Illinois, the SRECS is calculated over 15 years! Here's how the math would break down. Let's say you are installing an 8kW system and the average annual production estimates over 15 years in 11,000kWh. 

Remember, each SREC is awarded for every 1,000kWh of production. So, in this example, 15 years X 11,000kWh = 165,000kWh.  165 SRECS! This means that this system, given it is in Group A, for example, this SRECS check that will be sent to the homeowner within about a year of the system being installed will be worth..

165 SRECS x $78.51 = $12,954. Isn't that incredible? But, it is important to know that a third party service takes 10% of your SRECS in order to process it all in year one for you. so your portion is $11,658