Disclaimer: Due to the dynamic nature of current incentives, New Prairie will post as up-to-date information on current incentives as possible, please review current incentives with your New Prairie representative to ensure you are getting the most accurate information on incentives available to homeowners in Illinois.
Residential Renewable Energy Tax Credit
If you own your home or business property, there is a 30% Federal Tax Credit available in years 2022, 2023 and 2024. This tax credit is calculated based on the entire cost of the solar installation which may include costs associated with the installation such as electric upgrades, structural enhancements, and/or tree removal. The credit is a dollar for dollar reduction of your tax liability, not simply a deduction to taxable income. Businesses can also take advantage of accelerated depreciation (MACRS) on their solar investment which further lowers the net cost of the system. Learn more: https://programs.dsireusa.org/system/program/detail/1235
Solar Renewable Energy Certificates (SRECs)
Maximize Savings with Solar Renewable Energy Certificates (SRECs). In Illinois, the Solar Renewable Energy Certificates (SREC) program offers a powerful incentive for both home and business owners to invest in solar energy. This program rewards systems with incentives based on production. For systems up to 10 kilowatts (kW) AC, the incentive is delivered as a lump sum 9-18 months post-commissioning.
The SREC incentive can significantly reduce your project’s overall cost. To learn more about the program, visit illinoisshines.com
New Prairie simplifies the application process for state incentives through the Illinois Shines program. Partnering with Carbon Solutions Group (CSG), an Approved Vendor, New Prairie ensures you receive your incentive in one comprehensive payment, helping to further offset residential solar system costs. Minimal fees are associated with this program, and we will review these with you before contract signing.
For more on Carbon Solutions Group, visit carbonsolutionsgroup.com/index.html
USDA Rural Energy for America (REAP) Grants
The USDA offers an opportunity to apply for a grant to assist agricultural producers and rural small businesses to complete a variety of clean energy projects including solar installations. This grant can cover up to 25%-50% of the eligible project costs. Please discuss the application process with a New Prairie Solar Consultant. Learn more: https://programs.dsireusa.org/system/program/detail/2511
Modified Accelerated Cost-Recovery System (MACRS) Accelerated Depreciation
Business solar installations can also qualify for a depreciation deduction for income tax purposes. The depreciable basis is the system cost less ½ of the 26% (2021 & 2022) Federal Tax Credit. Also, for 2021 and 2022, there is bonus depreciation of 100% of the basis. Therefore, the entire system cost can be written off in the first year. We recommend that business owners consult with their tax advisor for specific information. It is not unusual for the depreciation benefit to cover 25% of the solar system cost or more.
Learn more: https://programs.dsireusa.org/system/program/detail/676
Net Metering
Although most electric cooperatives in our area no longer offer net metering, Ameren is still accepting new net metering interconnections.This initiative enables system owners to balance the electricity generated by their solar system with the electricity supplied by Ameren. If your system produces more energy than you use on a sunny day, the surplus will compensate for the deficit on a day you need it.
Traditional Net Metering will end by Dec. 31st 2024. Systems installed before 2025 are eligible for Net-Metering.
For Ameren customers, there is still an exchange for excess energy your system produces. Ameren is transitioning to a model where you’ll receive credits on your supply charges, but delivery charges will no longer be included, which still offers additional value for your investment.
For EIEC qualifying customers, excess energy is bought back by the utility at their on-peak wholesale energy rate.
Net metering simply allows a solar system to export excess electricity production (that cannot be used by the home/building) to the grid. Ameren keeps track of the kilowatt hours (kWh) exported to the grid in a “kWh bank” similar to roll-over minutes in a cell phone plan. At night or on a cloudy day, when electricity is imported from the grid, there is no cost for the electricity up to the balance of the kWh bank. Ameren charges you only for the net amount of the electricity you consume.