ILLINOIS SOLAR INCENTIVES

Commercial Solar Incentives in the Land of Lincoln

In Illinois, a state known for its commitment to renewable energy, there are several incentives available specifically designed to support and encourage the adoption of solar power systems by commercial entities. These incentives can significantly offset the initial investment and provide long-term financial benefits. In this guide, we will explore the key incentives available in Illinois, including net-metering, the REAP Grant, SRECs, utility-provided rebates, and PACE financing, to help you navigate the solar landscape in the Prairie State.

Net-Metering

Commercial solar net-metering is a crucial incentive for businesses considering solar installations in Illinois. Under this program, excess electricity generated by your solar system is fed back into the grid, allowing you to earn credits on your utility bill. During periods of low solar production, such as at night, you can draw electricity from the grid using these credits. In Illinois, net-metering is required to be offered by public utilities, providing businesses with the opportunity to maximize their energy savings and enhance the return on investment for commercial solar projects. To participate, businesses must meet specific requirements and complete the application process with their utility company, adhering to the regulations set forth by the Illinois Commerce Commission.

REAP Grant (Renewable Energy for America Program)

The REAP Grant is a federal program available to Illinois businesses looking to invest in renewable energy systems, including solar. By taking advantage of this grant, Illinois businesses can offset a significant portion of their commercial solar project costs. The state of Illinois, through its commitment to clean energy, encourages businesses to utilize the REAP Grant to accelerate the adoption of renewable energy sources. Eligibility criteria for Illinois businesses include factors such as project size, location, and energy production. The application process requires thorough documentation, including an energy assessment and a comprehensive project plan. Successful applicants can receive substantial grant amounts, making the REAP Grant a valuable incentive for commercial solar projects in Illinois.

SRECs (Solar Renewable Energy Credits)

SRECs play a vital role in Illinois’ solar incentive landscape. By generating solar energy, businesses in Illinois can earn SRECs, which represent the environmental attributes and benefits associated with clean energy production. These credits can be sold on the market, providing additional revenue streams for commercial solar system owners. In Illinois, the Adjustable Block Program is the mechanism through which SRECs are created and managed. Businesses must register their solar systems and receive certification to participate in the program, ensuring accurate measurement and verification of solar energy generation. The value of SRECs depends on market demand and the Illinois Power Agency’s procurement plans, making it a dynamic and valuable incentive for businesses looking to capitalize on their solar investments in Illinois.

Utility Provided Rebates

Illinois utility companies, such as ComEd and Ameren, actively support the adoption of solar energy by offering rebate programs specifically tailored to businesses and commercial solar installations. These utility-provided rebates offer upfront financial incentives to offset the initial costs of solar installations and make them more affordable for businesses. Eligibility criteria, rebate amounts, and program details may vary among the different utility companies operating in Illinois. It is essential for businesses to consult their respective utility company for specific program information. By leveraging utility rebates in Illinois, businesses can significantly reduce the payback period and enhance the financial viability of commercial solar projects.

PACE Financing (Property Assessed Clean Energy)

PACE financing is a financing option available to businesses in Illinois seeking to fund their solar projects through a property tax assessment. Illinois is one of the states that have embraced PACE financing as a means to accelerate the adoption of clean energy. It offers competitive interest rates, long repayment terms, and no upfront costs, making it an attractive choice for businesses looking for alternative financing methods. PACE financing is available for both new solar installations and system upgrades. Eligibility requirements and loan terms may vary across different jurisdictions within Illinois. By leveraging PACE financing, businesses in Illinois can enjoy the benefits of solar energy without the burden of upfront capital expenditures.

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

Case Studies

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    The installation of the solar array on the roof of storage facility is leveraging a limited regulation called “Group Hosting”. Group hosting is a method where a group of businesses or individuals share the installation and use of a larger solar array on a single property.

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    Bake Crafters Food Company

    Bake Crafters’ commercial solar array is a remarkable example of sustainability in action. With an output capacity of 800 kW and predictions of offsetting 770 metric tons of CO2 emissions.

  • Integra Commercial Solar Case Study
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    Integra Biosciences’ Commercial Solar project achieves 22% IRR and aligns with the company’s global sustainability goals and commitments. The two installations total 572-kW and generate enough power to offset 844,000 kWh.

  • Commercial Solar Case Study - Kraft Power
    Commercial Solar Case Study – Kraft Power Power

    Kraft Power utilized American made solar panels to install a 57.5 kW system on their roof. The new rooftop solar system, will help Kraft Power offset 100% of the electricity usage every year.

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Testimonials

Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
PCS Wireless
A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
Kraft Power
A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
Tower Water
Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
Cardoza Flooring
A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
House By The Side of the Road