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Illinois Power Agency Pays Cash for Solar

Illinois Power Agency Pays Cash for Solar

To accelerate the pace of solar adoption, the U.S. government offers tax credits and accelerated depreciation that offset roughly 50% of the cost of a solar project.  Some forward thinking states, like Illinois, offer additional incentives via Solar Renewable Energy Certificates (SRECS) to further encourage adoption of renewable energy.  Here’s what you need to know about the new solar incentives offered through the Illinois Power Agency (IPA).

New Legislation = More Solar Incentives

This past legislative session, the Illinois Legislature implemented a plan to incentivize the installation of more than 600 MW of solar energy by 2023, powering local utility, commercial, community, residential, and low income developments via renewables. The legislation instructs the Illinois Power Agency (IPA) to purchase SRECs from solar businesses to satisfy the state’s new Renewable Portfolio Standard (RPS). While this initiative does fulfill Illinois’ RPS, it is also intended to preserve low energy rates, enhance the states position as a leader in the clean energy economy and stimulate job creation and investment in energy efficiency, renewables and energy innovation.

What does this mean for Illinois businesses? Businesses that install solar, enter into a contract to sell the SRECs they generate to the IPA.  These cash payments received over the a 5 year term will cover approximately 25% of the cost of the installation.  Combined with the existing 30% federal tax credit, and accelerated depreciation, approximately 75% of the solar installation costs are covered by these incentives.  Very few states have such lucrative incentive programs, making Illinois one of the best solar markets in the country.

There is a limited pool of funds available for the SREC program, and the first to take advantage of it will get the most favorable payments.

Solar Incentives Maximize Already Favorable Market

These additional state incentives come at a time of significant growth in the solar market, and a historic depreciation of upfront solar installation costs. In the last 8 years alone, solar installation costs dropped by 80%, making now the time to go solar no matter which state you reside. The lower the upfront costs, the faster a solar power system will pay for itself, which only increases the benefit to your bottom line.

At SunPeak, we understand that a great solar project not only generates cost-saving renewable energy but also engages employees, shows long-term commitment and fulfills many business sustainability goals.  There is a lot to consider when investing in a solar project and this is why we offer a free Solar Feasibility Analysis for each location we intend to serve. For Illinois businesses wanting to know exactly how these new IPA solar incentives impact the cost of solar at their facility, please connect with one of our solar power experts via the Contact page.

SunPeak is passionate about renewable energy, which is why we stay up to date on the latest solar incentives available in every state. Even if your business isn’t located in Illinois, your state may still have their own solar programs available, and we’re more than happy to help keep you informed. To learn more about the advantages of going solar by state, connect with us here.

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