Lumin Energy Company works with multiple lenders and assists our customers in finding the solar loan product that is right for them. In addition, Illinois is the development phase of offering PACE funding to residents for their solar energy projects.
Illinois has some of the best solar incentives in the nation including:
Solar Renewable Energy Credits (SRECs)
Illinois’ renewable portfolio standard (RPS) commitments now include the commitment to producing 25 percent of Illinois state electricity from renewable resources, by 2025. That’s an aggressive goal to achieve, and to make this happen, the state has an incentive that rewards homeowners for helping Illinois reach that target. For each megawatt hour (MWh) of electricity your solar system produces, you will be granted one Solar Renewable Energy Credit (SREC) that you can then sell in the market, creating an income source for the life of the system.
Illinois’ net metering policy ensures your utility will buy back any excess electricity your solar system produces. Net metering allows you to benefit from the full value of your solar panels and is a great way to balance out your electricity production and consumption, which does not always happen at the same time. For example, you use more electricity in the evening when the sun is not shining. Unfortunately, receiving the great retail rate credit for net metering is not offered to the rural electric coops. Ameren, Commonwealth Edison, Mount Carmal public utility and MidAmerican Energy company all offer full retail rate net metering to their solar customers. This is also a program that you need to get into before it inevitable expires. This program can only be offered to solar energy technology early adopters. Once again, the early bird get the worm stage of the Illinois solar market!
Property Tax Break
Illinois does not assess the value of your property with the solar panels. As a result, your property tax bill will not go up if you install solar panels.
Federal Solar Income Tax Credit
The federal solar income tax credit is a, 30% of the total solar energy installation cost, tax credit. This federal solar income tax credit is available to both families and businesses. There are two important key understandings related to the federal solar income tax credit. The first is that money owed or paid to the IRS, can now be applied toward paying for your family or busineess, 25 -30 year, electric utility costs. The second is that a family or business must have the federal income tax liability, in which to apply the federal income tax credit. Tax liability can be an issue for those that are retired or some business situations. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “roll over” the remaining credits into future years for as long as the tax credit is in effect. However, remember that if you sign a lease or PPA with a solar installer, you are not the owner of the system, and thus you cannot receive the tax credit.
2016 – 2019: The tax credit remains at 30 percent of the total solar installation cost of the solar energy system.
2020: The federal income tax credit will be reduced to 26 percent of the total solar installation cost of the solar energy system.
2021: The federal income tax credit will be reduced to 22 percent of the total solar installation cost of the solar energy system.
2022+: The federal income tax credit will be reduced to 0 percent of the total solar installation cost of the solar energy system for residential installations. The federal income tax credit will be reduced to 10 percent of the total solar installation cost of the solar energy system for any commercial installation. Owners of a new commercial solar energy systems can deduct 10 percent.