Illinois Solar Incentives
As a resident of Illinois, deciding to use solar energy is a great decision as the state offers several support programs through incentives. Over the years, the state of Illinois has been updating its solar policies as it moves towards a 25% renewable energy status by 2025. Most solar companies will be transparent on how the following solar incentives work.
Federal Investment Tax (FITC)
All of Illinois can take advantage of the 26% Federal Tax Credit. The solar Investment Tax Credit (ITC) is one of the most important federal policy to support the growth of solar energy in the United States. This incentive allows individuals or businesses opting for solar energy to recoup 26% as of 2020 if the equipment and installation costs for an unlimited amount. In 2021 the tax will decline to 22%. In 2022 the tax credit will be discontinued for residential customers but drops to 10% for commercial businesses. For individuals with a tax liability and in need to shelter income, a solar energy system investment can be an excellent way to achieve big tax savings in Illinois.
Eligible solar panels for home use in Illinois attract the net metering incentive. Net metering allows homeowners and small business owners that produce excess energy from their solar system to back feed energy into the utility companies grid. In a nutshell, net metering ensures you can get credits on your bill for those times when you generate more power than you use. The Illinois net metering law requires investor-owned utilities to provide one-to-one net metering for renewable energy generation that is sized to offset the household’s energy consumption. One-to-one net metering will see homeowners get credited for the electricity they send back to the grid at the same rate that they are charged for electricity.
Solar Renewable Energy Certificate (SREC)
In addition to the Federal Investment Tax, Illinois residents can receive additional financial incentives through the state’s solar renewable energy certificate (SREC) market. SRECs are Illinois solar incentives that enable homeowners to sell credits for their solar system’s clean energy production to the investor-owned utilities. As a solar system owner, you will earn one REC for every 1000 kilowatt-hours (kWhs) produced by your solar system. Utilities will buy your SRECs so that they can count your solar power towards meeting their requirements. Selling your SRECs can result in extra income. This incentive is one reason why you need renewable energy in Illinois as it comes with monetary value. The first step towards earning SRECs is to look for a solar panel system contractor. If you search solar panel near me, the company will work with you and the state to ensure that your system is eligible for SRECs once it’s operational