What Are the Solar Incentives In Illinois 2023?
Solar Incentives In Illinois 2023 can significantly reduce the cost of a solar panel system, making solar accessible to many homeowners who otherwise wouldn’t be able to afford it.
In this article we’ll answer the question “what solar incentives are there in Illinois?”, outline the cost of getting solar panels without incentives and take a look at what alternatives there are on the table.
These days, solar isn’t just a luxury available to those who have a lot of money in the bank – it’s an accessible energy source that every homeowner can benefit from.
1. What federal solar incentives are available in 2023 ?
The Inflation Reduction Act that was adopted by the federal government in late summer 2022 extends the Federal Solar Investment Tax Credit (ITC) through 2032.
The ITC is a 30% tax credit available to many homeowners who have a solar panel system installed on their home. With the ITC, the federal government essentially covers 30% of the cost of the system of those that are eligible.
If you’re leasing rather than buying your system, unfortunately you’re not going to be eligible. You also have to be paying a certain amount in federal taxes in order to qualify.
Every home is different, however, so just to be sure that you are eligible before you buy solar panels, you should always check with your accountant or CPA. Solar Incentives In Illinois 2023.
2. What Solar Incentives Are There In Illinois in 2023?
Illinois also offers incentives for homeowners who buy solar panels, which can further reduce the cost of a solar panel system.
The Adjustable Block Program under Illinois Shines allows homeowners to generate Solar Renewable Energy Certificates (SRECs), which can reduce the cost of solar panels by around 25%.
Some companies will deduct the amount from what you pay and apply on your behalf. If the solar company you go with does not, you’ll have to apply yourself and it can take up to 18 months.
The SRECs are paid as a lump sum. As with the federal tax credit, you’re not eligible for the Illinois solar incentive if you didn’t buy your system.
3. Can You Sell Solar Energy Back To The Grid In Illinois?
Most solar panel systems feed excess electricity produced during the day into the grid. One common question amongst those thinking of getting solar panels is therefore “can you sell solar energy back to the grid in Illinois?”.
The answer to that question is yes. Electricity fed into the grid will generate utility credits on your utility bill, for you to spend during times when your solar panels are not producing power.
This is called Solar Net Metering. Currently in Illinois, the ratio used for Solar Net Metering is 1:1 – so for each kWh you feed into the grid, you get the same back.
However, in other states the ratio has been reduced for all new homes that install solar panel systems – so they only receive credits worth 75% of what they fed into the grid. Solar Incentives In Illinois 2023.
Ameren is already pressing the Illinois Commerce Commission to end net metering, and many think it’s only a matter of time before Illinois follows other states.
Homes that got solar panels before the reduction in other states still generate credits at a 1:1 ratio. This is an indication that if you want to make the biggest savings from your solar panels, it’s important to install them sooner rather than later. Solar Incentives In Illinois 2023.
How Much Do Solar Panels Cost Without Incentives?
A report by the Solar Energy Industries Association (SEIA) illinois srec price 2022 showed that the cost of solar panels has dropped by an annual average of over 60% in the last decade.
Whereas back in 2011, the average cost of a 6kW solar panel system was around $50,000, in early 2022 a solar panel system of the same size cost between $16,000 and $21,000.
- Nationally, the average cost of a solar installation:
- With monocrystalline solar panels is between $3.00 and $3.50 per watt.
- With polycrystalline solar panels is between $2.80 and $3.00 per watt.
- With thin film solar panels is between $2.00 and $3.00 per watt.
- Prices are unlikely to drop any further than they already have and incentives will expire at some point in the future.
- Additionally, due to inflation, the cost of systems is rising once again state of Illinois solar incentives.
How Much Do Solar Panels Cost In Illinois Without Incentives?
- As of April 2022, the cost of solar panels in Illinois is between $2.64 and $3.56 per watt.
- The average cost of solar panels in Illinois is $3.04 per watt.
- The larger the system that you purchase, the higher the overall cost but the lower the price per watt.
- The average cost of a 6kW solar panel system is between $15,810 and $21,390
- The average payback period (the time it takes before you start seeing net savings) is 5 – 10 years.
Can You Get Free Solar Panels In Illinois?
For some homes, even with the state and federal incentives, the cost of installing solar panels is still too high. However, there are options available for homeowners to get solar panels with no upfront costs.
Solar Panel Leasing
With a solar panel lease, a private company pays for your solar panel installation and you lease the solar panels from them on a monthly basis. Illinois solar incentives 2022.
With a solar panel lease, you don’t have to wait years before you start saving money – you’ll start saving right away.
- If you lease solar panels, the power they produce and the utility credits that are generated are yours
- Customers who lease solar panels can see annual savings on their utility bill by around 40%, making it an attractive option for those who can’t afford to pay for solar panels
- Over a 20 year period, you can see savings of around $25,000
Solar Power Purchase Agreement (PPA)
A PPA is similar to a solar panel lease in that a company pays for the solar panels to be installed on your property. The difference, however, is that instead of leasing the panels, you’re paying for the power that they produce.
Most people who get a solar panel lease will still see reasonable savings on their utility bill, though usually only around 10-20%.
Do You Want To Join The Illinois Green Energy Revolution?
If you’re thinking of getting solar panels, you’ll no doubt be realizing it’s not always as straightforward as people might think. That’s why Green Home Makeover is here to help.
We’re experts in the solar industry, offering more than 7 years of solar experience helping turn solar dreams into realities all across Illinois.
We’ll manage every aspect of your solar project, from A to Z, so you don’t stumble over any of the hurdles or get caught up in all the red tape.
If you’d like to join the Illinois green energy revolution, contact us today for a free, no-obligation consultation and quote ameren solar incentives.
References:
- https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/15/by-the-numbers-the-inflation-reduction-act/
- https://www.energy.gov/eere/solar/articles/solar-investment-tax-credit-what-changed
- https://illinoisshines.com/
- https://energynews.us/2020/10/14/southern-illinois-solar-energy-growth-prompts-fight-over-net-metering-math/
- https://www.seia.org/solar-industry-research-data