Installing a solar energy system into your home or business requires significant time and financial outlay. Such dedication to environmental change deserves tangible monetary rewards – not just the freedom of being off the grid and the sense of pride that goes along with doing your bit for your environment.
The state of Illinois feels so strongly about preserving the environment that they have not only undertaken to make complete use of renewable energy by the year 2045 but to reward their partners in contemporary terms – with market-based instruments called Illinois SRECs (solar renewable energy certificates). And if you generate your own solar electricity, you are one of their partners. You own an Illinois SREC, or a renewable energy token, for every megawatt (MWh) of energy you produce.
These certificates can be monetized in various ways:
- Illinois SRECs can be purchased again by a state-owned entity that needs to generate a certain amount of renewable energy. The majority of programs function this way via a state-approved solar energy system installation vendor.
- They can be purchased by large companies that need to offset their carbon emissions.
- They can be traded for profit due to different monetary values placed on SRECs in different states.
How To Apply For Illinois SREC
One of the best things about Illinois SRECs is that they are paid in advance for the estimated number of megawatts of solar energy you will produce over the next 15 years. This means that you can safely finance your renewable solar energy system, knowing that a large sum of it will be recouped.
Here’s how you go about applying for your Illinois SRECs:
- Sign the disclosure form and installation contract provided by an approved vendor.
- Your vendor does a group application on your behalf.
- Illinois Commerce Commission Review
- REC contract signing between your vendor and the contracting utility, whereby they buy the produced SRECs from your vendor.
- Solar system installation
- Final application
- Payout by the contracting utility to your vendor, who then pays you according to your agreement with them.
You can find more detailed information on the Illinois SREC program, Illinois Shines, here.
Federal Solar Tax Credits In SREC Illinois
In addition to Illinois SRECs, you will also be eligible for federal solar tax credits. This is in stark contrast to the often touted warning that your savings in electricity bills will be offset against the increased taxes of going solar.
Instead of getting a tax rebate, which reduces your taxable income, you will get a reduction in your tax, which can amount to 30% of the cost of your installed solar energy system.
Together with your Illinois SRECs, you could end up recouping the cost of 50% of your initial investment.
Conclusion
Aegis Construction Group is an Illinois state-approved solar energy system vendor. Let us help you partner with the state of Illinois to make it a better environment for all, and a better vehicle for the money you’d be spending on electricity bills. Call us at (773) 812-3447 for more information on SRECs
